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Why do oil companies lease land?

Oil and gas exploration companies generally want to hold the leased mineral rights for a period of years until they actually begin drilling. This could be because the price for natural gas is down, or their rigs are operating elsewhere, or for any number of business reasons.

What parties are involved in an assignment of an interest in a lease?

There are three parties involved in a lease assignment the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor.

What is an assignment contract?

An Assignment, or an assignment of contract, is a document that allows one party to transfer the rights and benefits of a contract to another party.

What is an assignment of oil and gas lease?

The lessee of an oil or gas lease can assign the entire lease or part of it. In other words, the lessee can sell or transfer part of the estate or the entire estate to which they have the working rights. The assignee is assigned the working interest and lease obligations, including override royalty.

What is a wellbore interest?

The Wellbore Interest shall include, without limitation, the right to produce, operate, maintain, and repair the Well, along with the right to own all oil, gas, and other hydrocarbons produced from the Well, subject to any existing burdens on said production.

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