How do the expenses since Territory Resources compare to what was be charged by Chesapeake? The Oklahoman reported Territory Resources intends to drill at the Stidham #1 location. In 2007 or 2008 Chesapeake required a lease prior drilling. There has not been any activity since July 2014 to the best of my knowledge. Prior to drilling doesn’t Territory Resources have to obtain new leases? Jim
If you are getting any royalties from Gish R E 2, Roland 19-3, or L Kelley 1-19, then you are held by production. The Stidham well has a permit to recomplete it from Territory, so depending upon your acreage, you might be held by the Kelley 1-19 which is right next to the Stidham. Depends upon the spacing and where your acreage is within the spacing unit. L Kelley is 160 acres, so you might be held by it.
Thank you. That clears up my concerns. Jim
After 6 months I am still having questions about this property. When the Stidham well was first drilled Chespeake paid a signing bonus and had us sign a new lease.I believe this was required because the increase in depth. The depth for the 2 Gish wells and the Roland well was set around the 10,000 feet level when the prior owner to Chesapeake asked to drill deeper by the Oklahoma Corporation Commission.top The Stidham produced payments up until April of 2014. I am don’t sure of when the Kelley stopped producing but when I looked it up recently it had no production. That brings me back to the question if both the Kelley and Stidham are not producing wouldn’t the depth clause go back to the depth of the Gish and Roland well. Thanks for your time Jim
The answer depends upon whether your lease has “deepest depth drilled or penetrated” or “deepest depth producing”.
1 Like