How long does an Oil & Gas Lease last?
An Oil & Gas Lease has two parts. The primary term and the secondary term. The primary term on average is 3 years. Companies can add a 2-year extension if they wish. The company that executed the lease uses this time period to achieve drilling the well. Once that is completed, the secondary term begins and lasts for as long as the well is producing. The Oil & Gas Lease has the opportunity to last for decades.