My mother leased with Brower Oil and Gas. She has since passed. A leasing company called to lease the rights, but Brower Oil still says the lease is in production. If I read the lease correctly when the lease is in production, the lease doesn’t expire eventhough the lease was for 3 years. Does anyone know if this is correct. The land in question is in Pittsburg County, Oklahoma, section 5 township 7 north, range 13. I also have been offered $3,000 an acre to purchase the mineral rights out right. Does anyone know if this is a good offer or not? I would appreciate any insights. Thanks
Good question I have a lease in Custer that has not renewed since the 1990s.
Without knowing if the lease is producing, read the phrase again and it will say "for 3 years, OR AS LONG THEREAFTER AS THERE IS PRODUCTION!’ So if you are getting production revenue, the lease is still valid. As for purchase price per acre, that is up to each individual based upon their needs/wants.
If a well is drilled during the first primary term (usually three years), the the lease moves into the secondary term which is defined by the lease (usually as long as there is production). This is perfectly normal. The royalties are the benefit. As you can see from the map, there are quite a few horizontal wells in the area. The reason you are getting offers is that Calyx Energy has quite a few new wells with a surface location in 5 drilling to the north. There may or may not be more in the future. Do you know which well Brower is referring to? Ask them! The Sadler and Scarpetti wells have not reported production in 12 months on the OTC site, so the lease may have expired. There is leasing going on in that section.
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