According to Courthouse Direct’s last Lease Alert, Key Exploration Ltd recorded leases on September 24th covering parts of 70 different Cherokee Co. surveys. The general area is highlighted on map below. Some of the leases covered multiple tracts totaling over 3,000 acres so the overall total acreage is large.
The lease memo’s make reference to a Seismic Option Agreement that gave Key a two year option on taking a lease, which it appears they’ve now elected to do. The lease dates range from May through July of this year and state a 3 year primary term with a two year extension option.
Key hasn’t filed for drilling permits in their own name but appears related to Maximus Operating who has taken a few permits in Smith and Henderson County in the last two years. But it’s possible this is part of a block Key put together for a company that didn’t want their name involved.
Would definitely appreciate information anyone can share on this, particularly bonuses paid or what Key is targeting. Any previous activity in that area goes back many years but this looks like another indicator of improving prospects for natural gas.