Held By Production

Filed Under » , ,
Dictionary Says

Definition of 'Held By Production'

A provision in an oil or natural gas property lease that allows the lessee, generally an energy company, to continue drilling activities on the property as long as it is producing a minimum paying amount of oil or gas. The "held by production" provision thereby extends the lessee's right to operate the property beyond the initial lease term. This provision is also a feature of mineral property leases.
Investopedia Says

Investopedia explains 'Held By Production'

The "held by production" provision enables energy companies to avoid renegotiating leases upon expiry of the initial term. This results in considerable savings to them, particularly in geographical areas that have become "hot" due to prolific output from oil and gas wells. With property prices in such areas generally on an upward trend, leaseholders would demand significantly higher prices to renegotiate leases.
Search results for

'Held By Production'

  • Drilling Frenzy To Hold Acreage May Slow In 2011

    http://stocks.investopedia.com/stock-analysis/2010/Drilling-Frenzy-To-Hold-Acreage-May-Slow-In-2011-CHK-HK-XCO-NFX0816.aspx
    ... during its second quarter conference call that most of its acreage in the Haynesville
    Shale would be held by production by the middle to late part of 2011. ...

  • Natural Gas Drilling Frenzy Drawing To A Close

    http://stocks.investopedia.com/stock-analysis/2011/Natural-Gas-Drilling-Frenzy-Drawing-To-A-Close-XCO-HK-ECA-CNX0223.aspx
    ... Shale may peter out by the end of 2011, as the exploration and production industry
    is rapidly converting its leases here from term to held by production. ...

  • Drilling To Hold Acreage May Hurt Big Picture

    http://stocks.investopedia.com/stock-analysis/2010/Drilling-To-Hold-Acreage-May-Hurt-Big-Picture-TLM-DVN-FST-XEC0511.aspx
    ... Many exploration and production companies are drilling because they need
    to convert leases from term to held by production. When ...

  • Petrohawk Energy's Q2 Bottom Line

    http://stocks.investopedia.com/stock-analysis/2010/Petrohawk-Energys-Q2-Bottom-Line-HK0805.aspx
    ... The company estimates that the bulk of its leasehold in the Haynesville
    Shale will be held by production by the middle of 2011. ...

  • Say Hello To Matador Resources

    http://stocks.investopedia.com/stock-analysis/2011/Say-Hello-To-Matador-Resources-MTDR-EOG-CHK-RDS-AB0906.aspx
    ... Haynesville Shale Matador Resources has 15,000 net acres prospective for the
    Haynesville Shale and estimates that 90% of its acreage is held by production. ...

  • Haynesville Shale Activity Continues To Decline

    http://stocks.investopedia.com/stock-analysis/2011/Haynesville-Shale-Activity-Continues-To-Decline-PXP-CHK-GMXR-EOG-QEP-HK-SWN0822.aspx
    ... programs designed to convert leases from "term" to "held by production." This trend
    has been ongoing and accelerated during the second quarter of 2011. ...

  • Petrohawk Energy Works The Haynesville Shale In 2010

    http://stocks.investopedia.com/stock-analysis/2010/Dec-Petrohawk-Energy-Works-The-Haynesville-Shale-In-2010-HK1220.aspx
    ... on developing the Haynesville Shale despite the low price for natural gas because
    it has to drill to convert its acreage from "term" to "held by production". ...

  • Haynesville Shale Development To Decline In 2012

    http://stocks.investopedia.com/stock-analysis/2011/Haynesville-Shale-Development-To-Decline-In-2012-XCO-FST-QEP-SM1124.aspx
    ... Another factor motivating the reduction in activity is that many operators are nearly
    finished with converting acreage to be held by production and will soon ...

  • Say Hello To The Collingwood Shale

    http://stocks.investopedia.com/stock-analysis/2010/Say-Hello-To-The-Collingwood-Shale-ATLS-ECA-BBEP-KWK0518.aspx
    ... acreage. Atlas Energy has 70,000 net acres exposed to the Collingwood Utica
    Shale, and has 83% of the leases held by production. ...

  • The Collingwood Shale Gets Its Footing

    http://stocks.investopedia.com/stock-analysis/2010/The-Collingwood-Shale-Gets-Its-Footing-ECA-ATLS-BBEP0907.aspx
    ... The company has 105,000 net acres prospective for the play, and it reports that
    about half this acreage is already held by production due to the company's ...

Related Articles

Partner Links