I have received an offer to lease in Section 35-19N-6W in Kingfisher County OK. In the Corporation Commission website a permit for drilling has been granted to another company and I received a Corporation Commission Application filed with yet a different company to establish a 640-Acre Horizontal Drilling and Spacing Unit. How are each of these different company's able to drill in the same area?
Frances Herring, Herring Oil & Gas, LLC
It is very common for a number of companies to take lease in the same section. They then reach agreement of who will move forward with development or one of the companies making the application may be a subsidiary or a joint area development partner.
Given the fact your received a lease offer pay attention to any force pooling and its deadlines since you might lock into better terms than the pooling action would provide. If pooled the terms only lock the specific formations named and the property has to be drilled within twelve months.
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