Hi, All!

I'm kind of new to the Oil & Gas game. I have some questions about leases, unitization, and extentions.

My family leased with PetroHawk in May 2008. There were some mix-ups in getting the money to everyone involved (didn't get paid til August). Does our 3 year lease end in May or August?

The section has been unitized and another company has permitted to drill a HS well in another part of the section (not on our land). If this other company does drill this well in the next couple of months, does that mean that our lease to PetroHawk won't expire even though PetroHawk hasn't done anything or does PetroHawk have to drill a well on the section to hold the lease?


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Your lease has an "effective date" at the top of the first page.  That controls.  Just because there is a company other than Petrohawk drilling from a surface location in your section doesn't mean it is drilling the minerals in your section.  If it's a horizontal well it can be, and often is, drilling into an adjacent section.  If you want a definitive answer, post the section-township-range, it's also on the lease.

The land is in Section 27. 13N. 12W.

From Sonris it looks like Chesapeake has a PATCO 27H well permitted for the southern part of the

section, but I can't tell if it has actually been drilled.  Can Chesapeake's work hold the PetroHawk lease?

Is that how the unitization gig works for the companies?

Your section is under a Haynesville Drilling & Production Unit order to Chesapeake.  It is not unusual for minerals within a unit to be under lease to multiple companies.  As the operator of the unit, Chesapeake will be drilling the wells.  Chesapeake is obligated under the Force Pooling agreement in the unit order to honor the terms of your lease with Petrohawk.  This well will hold your lease in force and pay you royalties.   Good Luck on your well.

So, really all Chespeake has to do is drill a well in the section and that holds all leases, am I right?  They don't have to actually pump anything?

Thanks for your help.

The well must produce to hold the leases however this is a Haynesville well and the chances of it not being productive are slim and none.
Lease ends three years after the date of the lease contract...which was probably May.


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