Until recently, Oklahoma courts have not addressed the issue of whether a multiunit horizontal well that is commenced off-unit can perpetuate a lease on the adjacent unit into its secondary term, if the lateral for the well fails to penetrate the unit in which the leased premises was located until after the primary term of the lease has expired.
by Stephanie Moser Goins
Under Oklahoma’s Statute of Frauds at 15 O.S. §136, certain types of contracts, including contracts involving conveyances of real property or modifications thereof, require that the terms of the transaction be memorialized in writing and signed by the party to be charged, or the party against whom specific performance is sought. Cloud v. Winn, 303 P.2d 305, 308 (Okla. 1956). Because a lease of mineral interests is a conveyance of real property, an oil and gas lease must be in writing. Further, an instrument affecting rights in real estate must be filed in accordance with the recording requirements of Title 16 of the Oklahoma statutes to be valid as against third persons. See Amarex Inc. v. El Paso Natural Gas Co., 1987 OK 48 ¶ 14, 772 P. 2d 905, 908.
As October closed out, the price of natural gas posted triple-consecutive sessions of gains, as cooler-than-usual weather is expected throughout the country.
Despite wavering trends in the oil and gas industry, rig data provider Enverus, formerly Drilling Info, has reported oil and gas rig counts increasing by two this week. The US oil and gas rig count currently stands at 902 this week, amid a downcast earnings season, characterized by uncertainty across many fronts.