AboutLaura M. FitzGerald, CPL Expertise I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.
Experience 26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells
Organizations American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)
Education/Credentials Certified Professional Landman, attended LSU, Notary Public
Question In reference to the contiution of an existing lease due to production, I was wondering how production is defined as far as allowing the lease to continue.
I was told by someone that by spudding a well a company can claim a well is in production and thus continue under an old lease. Is this true?
Answer The well must be producing in commercial quantities. Now, the big question is: what is 'commercial quantities'. Many times it is explained as: if the revenue is greater than the expenses, then it is profitable for an Operator to continue to produce.
Just 'spudding' a well does not hold a lease. But in order for me to determine if 'your lease' has been maintained by production, I would have to review the contents of the entire lease to see what provisions are in place to maintain the lease.
