Top Leasing - Anderson County

Yes, Texline is leasing for Jamex Inc.

Who has new insight on the identity of Leasehold Interests? This is what I know - this past week a company called Emco Resources, which I believe is the brokerage Eiche and Mapes, filed 31 lease memos. Leasehold Interests has made, as documented by folks on this forum, ORRI assignments to Joe Kast, a Geologist out of the Dallas area on the leases taken by Leasehold Interests. Joe Kast is one of the partners in an entity called Seif Oil and Gas Company, LLC. The other partner in Seif Oil, listed on the Secretary of State site, is Ted Mapes being the Mapes in Eiche and Mapes. This doesn't necessarily get us any closer to the identity of the operator behind Leasehold Interests, but it shows that it's likely the same operator behind both Emco and Leasehold Interests. How about some more clues?!

Jack, I can add a little more information, but nothing really important. Much like the entities leasing for EOG, Leasehold Interests has also done substantial leasing in Cherokee and Smith Counties, in addition to Anderson. I believe this leasing is related to a salt-cored anticline feature that is associated with the Brooks Salt Dome that is located beneath the Saline Bay section of Lake Palestine.

This anticline peaks in southwestern Smith County, right where EOG drilled their science well in May. Recently, EOG drilled a horizontal well at that same location. The rigging was removed last week, and a source informed me that EOG has guards on the site, and that anyone coming on the wellsite has to have signed a confidentiality agreement.

There are three entities that have been leasing in the same area: Leasehold Interests, Texline, and Sulphur River Exploration. I have no idea if any of these entities are working together. However, the mailing address given in the lease memos for Sulphur River is in the same building in Dallas as Leasehold Interests.

By the way, Jamex will be drilling in the Brushy Creek area soon (late October/early November). Their first well will be located just north of the Olive Branch Cemetery. They have plans for 15 to 20 horizontal wells in that area, assuming the initial wells meet their production targets. I wonder if another company is working with Jamex, as this project seems bigger than what Jamex normally does. I heard a rumor many months ago that Devon was involved in leasing around Brushy Creek, but I've heard nothing else since that time.

Leasehold Interests has done a good job of maintaining secrecy.

Exciting that is only 3 miles away from the acreage we leased to Jamex back in December.



Alan Herrington said:

Jack, I can add a little more information, but nothing really important. Much like the entities leasing for EOG, Leasehold Interests has also done substantial leasing in Cherokee and Smith Counties, in addition to Anderson. I believe this leasing is related to a salt-cored anticline feature that is associated with the Brooks Salt Dome that is located beneath the Saline Bay section of Lake Palestine.

This anticline peaks in southwestern Smith County, right where EOG drilled their science well in May. Recently, EOG drilled a horizontal well at that same location. The rigging was removed last week, and a source informed me that EOG has guards on the site, and that anyone coming on the wellsite has to have signed a confidentiality agreement.

There are three entities that have been leasing in the same area: Leasehold Interests, Texline, and Sulphur River Exploration. I have no idea if any of these entities are working together. However, the mailing address given in the lease memos for Sulphur River is in the same building in Dallas as Leasehold Interests.

By the way, Jamex will be drilling in the Brushy Creek area soon (late October/early November). Their first well will be located just north of the Olive Branch Cemetery. They have plans for 15 to 20 horizontal wells in that area, assuming the initial wells meet their production targets. I wonder if another company is working with Jamex, as this project seems bigger than what Jamex normally does. I heard a rumor many months ago that Devon was involved in leasing around Brushy Creek, but I've heard nothing else since that time.

Leasehold Interests has done a good job of maintaining secrecy.

Alan - My wife's grandmother was Nora Herrington. Are you one of her descendents also? My wife, 2 sisters and 2 cousins own Nora's farm west of Brushy Creek and leased to Leaseholders Interests earlier this year.

In follow up to Jack B's post, I spoke with Joe Kast. Nice guy but, not surpisingly, can't tell me anything since everything is confidential. Joe said he didn't know of anyone getting ready to do any drilling in the area anytime soon, but also said it wouldn't suprise him if it happened (i.e. Jamex).

Can you tell me how you found out about Jamex's plans? Haven't seen a recent well application filed by them and would like to find out if there plans include drilling on our place.



Alan Herrington said:

Jack, I can add a little more information, but nothing really important. Much like the entities leasing for EOG, Leasehold Interests has also done substantial leasing in Cherokee and Smith Counties, in addition to Anderson. I believe this leasing is related to a salt-cored anticline feature that is associated with the Brooks Salt Dome that is located beneath the Saline Bay section of Lake Palestine.

This anticline peaks in southwestern Smith County, right where EOG drilled their science well in May. Recently, EOG drilled a horizontal well at that same location. The rigging was removed last week, and a source informed me that EOG has guards on the site, and that anyone coming on the wellsite has to have signed a confidentiality agreement.

There are three entities that have been leasing in the same area: Leasehold Interests, Texline, and Sulphur River Exploration. I have no idea if any of these entities are working together. However, the mailing address given in the lease memos for Sulphur River is in the same building in Dallas as Leasehold Interests.

By the way, Jamex will be drilling in the Brushy Creek area soon (late October/early November). Their first well will be located just north of the Olive Branch Cemetery. They have plans for 15 to 20 horizontal wells in that area, assuming the initial wells meet their production targets. I wonder if another company is working with Jamex, as this project seems bigger than what Jamex normally does. I heard a rumor many months ago that Devon was involved in leasing around Brushy Creek, but I've heard nothing else since that time.

Leasehold Interests has done a good job of maintaining secrecy.

James, I don't believe I'm related to Nora Herrington...at least I've never heard her name before.

Interesting that you spoke to Joe Kast...did you just call him up? I know I would like to talk to him!

The Texline people doing the land work on the Jamex project have been pretty forthcoming about the drilling plans. In addition, one of my cousins owns the surface where Jamex is drilling their first well...I believe it its in the McGowan Survey. He and some of the Texline people went to the site last week to discuss the drilling location. He told me yesterday that they have started putting stakes in the ground, and that they expect to begin drilling in late October/early November.

Alan - I wrote a reply to your Thursday reply but don't see it here. Did you recieve it outside this forum?

Alan Herrington said:

James, I don't believe I'm related to Nora Herrington...at least I've never heard her name before.

Interesting that you spoke to Joe Kast...did you just call him up? I know I would like to talk to him!

The Texline people doing the land work on the Jamex project have been pretty forthcoming about the drilling plans. In addition, one of my cousins owns the surface where Jamex is drilling their first well...I believe it its in the McGowan Survey. He and some of the Texline people went to the site last week to discuss the drilling location. He told me yesterday that they have started putting stakes in the ground, and that they expect to begin drilling in late October/early November.

James, no I did not.

Does anyone have any contact info for these companies drilling in Anderson County? Addresses or numbers will be great!

Alan - This is my second attempt to reply your below email. Call me during bus hrs at 512-326-5659 for Joe's #.

Alan Herrington said:

James, no I did not.

Alan- any new news in regards to Jamex drilling their first well? I keep checking the railroad commission website looking for a permit to pop up. Hoping they hit a gusher then drill many more.

Garnett, I met with one of the Texline/Jamex land men today, and he said they are still targeting the end of October for their first well, which will be located north of the Olive Branch Cemetery in the Brushy Creek area. By the way, the ONEOK Sterling III pipeline is coming through that same area. I was out there today, and there is lots of construction activity going on.

I'm checking the RRC website for W-1 submissions multiple times per day...

Alan - Jamex submitted well permit application on Wednesday (11/6) for the Olive Branch well (12,500 ft deep with 6,000 ft lateral, oil & gas).

I saw that, James. One of my cousins has mineral ownership of about 67 net acres in the 440 acre lease tract. It will be interesting to see the results. I have mineral ownership about 1.5 miles away from this first well. Jamex' drilling plan calls for two horizontals under my property, but those wells are not scheduled for the immediate future, and may not happen at all if the initial results aren't good.

Drove by the Jamex rig tonight just north of Brushy Creek it was lit up and drilling.

Wow! That was quick. I drove to the well site last Tuesday and they were still moving dirt for the pad, plus they were drilling a water well.

I couldn't drive all the way up to it though the road was too muddy for my car. I tried from the 837 side but could only get as far as the cemetery.

Jamex is using Big 6 Drilling's Rig#9:

http://www.big6drilling.com/

Beautiful looking rig, but I've been told that is isn't powerful enough for horizontal drilling, so I assume Jamex is drilling a vertical test well to check out the formation(s).

Jamex's drilling permit was for a horizontal well so it must be the real thing. Remember EOG got a vertical permit for their service well and later got a permit for the horizontal well. But you may be right because it would take a huge (15,00 HP) rig to drill a 12,000 horizontal well. I guess time will tell.