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Permalink Reply by Yogi Bear on July 17, 2011 at 11:19

You've answered your own question. Assuming there is no production or further intent to produce, then if the company wishes to maintain the lease, it must exercise the option. TA just means they are not prepared to plug and abandon - unless there are ongoing attempts to establish production within the continuous operations provisions or provisions at the end of the primary term, the lease cannot be maintained no matter what the status says.

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Permalink Reply by The_Baron on July 18, 2011 at 3:02

Not nessasarily, depending on the lease, it could be maintainedwith the Shut-in provisions.

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Permalink Reply by Yogi Bear on July 18, 2011 at 10:13

The topic states that the well was never completed. Shut in would not apply because the well would have to be capapble of production in order to be shut in.

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