Top Leasing - Anderson County

John, Jamex has two permits for that location...one for vertical and one for horizontal. The horizontal permit contains this remark:

"Per email from P Clark: This well will first be drilled vertically. After evaluations, it is possible that it be completed as a horizontal well by kicking off (out of the same hole) and drilling horizontal as indicated on the horizontal plat."

So if they decide to proceed with a horizontal, they will bring in a more powerful rig.

Alan - What's the latest word on the Jamex well?

Alan Herrington said:

John, Jamex has two permits for that location...one for vertical and one for horizontal. The horizontal permit contains this remark:

"Per email from P Clark: This well will first be drilled vertically. After evaluations, it is possible that it be completed as a horizontal well by kicking off (out of the same hole) and drilling horizontal as indicated on the horizontal plat."

So if they decide to proceed with a horizontal, they will bring in a more powerful rig.

James, I've been digging for info on the Jamex well, but nobody's talking.

I say on a different thread that the rig had demobed.

Alan Herrington said:

James, I've been digging for info on the Jamex well, but nobody's talking.

Mineral owners DO have the right to know who is leasing their land. Instructions from Mineralweb:

http://www.mineralweb.com/news/texas-royalty-owners-have-the-right-...

Alan - What's the latest on the Jamex Herrington 1H well?

james isensee said:

I say on a different thread that the rig had demobed.

Alan Herrington said:

James, I've been digging for info on the Jamex well, but nobody's talking.

Jamex ran a 24-hour test of the well on May 28...results were mediocre for a 6,000+ foot lateral at 262 bbls of oil and a trace of gas. The well was on a downhole pump during the test (not free flowing).

My understanding is that the well stopped flowing at some point in June. A week or so ago, Jamex appears to have done a liquid nitrogen injection in an attempt to get the well flowing again. I have not heard anything about the results.

Herrington 1H Completion Report

Thanks much Alan.

Alan Herrington said:

Jamex ran a 24-hour test of the well on May 28...results were mediocre for a 6,000+ foot lateral at 262 bbls of oil and a trace of gas. The well was on a downhole pump during the test (not free flowing).

My understanding is that the well stopped flowing at some point in June. A week or so ago, Jamex appears to have done a liquid nitrogen injection in an attempt to get the well flowing again. I have not heard anything about the results.

Herrington 1H Completion Report

Allen - Any new news on thbe Herrington 1 well?

It's on a pumpjack and I've heard it's producing about 100 barrels of oil per day...not the results Jamex wanted. My understanding is that they intend to drill another well, but they are going to wait a few months and see how other companies do with their initial wells.

Thanks Alan. Are there other recently drilled wells in the vicinity?

Not any drilled by any of the key players. My understanding is that Walter Oil and Gas will be drilling a well to the northeast of the Jamex well sometime during the fourth quarter. The Leasehold Interests group, associated with Mustang Drilling and other entities, also is expected to drill their first well in the fourth quarter, but it will probably be some distance to the northeast. EOG recently permitted their second Smith County well, to be located about two miles northeast of their Cowan well. All of these projects are thought be primarily Goodland Lime plays.

Tri-C Resources has done some substantial leasing eight to ten miles west of the Jamex well. They are expected to start drilling in the fourth quarter, but that is thought to be a Rodessa play. O'Benco has been drilling Rodessa wells north of the Tri-C area, extending into Henderson County.

Thanks Alan!

Alan - You have any updates on the Herrington well or other vicinity O&G activities?

Alan Herrington said:

Not any drilled by any of the key players. My understanding is that Walter Oil and Gas will be drilling a well to the northeast of the Jamex well sometime during the fourth quarter. The Leasehold Interests group, associated with Mustang Drilling and other entities, also is expected to drill their first well in the fourth quarter, but it will probably be some distance to the northeast. EOG recently permitted their second Smith County well, to be located about two miles northeast of their Cowan well. All of these projects are thought be primarily Goodland Lime plays.

Tri-C Resources has done some substantial leasing eight to ten miles west of the Jamex well. They are expected to start drilling in the fourth quarter, but that is thought to be a Rodessa play. O'Benco has been drilling Rodessa wells north of the Tri-C area, extending into Henderson County.

Through September, the Jamex Herrington 1H has produced about 12,500 barrels of oil, and the daily average for September was 68 barrels...clearly not an economic well. Jamex is sitting on the sidelines waiting to see if someone else can hit some productive Goodland Lime wells in Anderson County.

The precipitous drop in oil prices (now down to $66/barrel), may bring a halt to some activity here. However, EOG has continued a second round of leasing via Triad Land Services. I think we will find out in January if EOG will be continuing their exploration efforts here.

Thanks Alan.

Alan Herrington said:

Through September, the Jamex Herrington 1H has produced about 12,500 barrels of oil, and the daily average for September was 68 barrels...clearly not an economic well. Jamex is sitting on the sidelines waiting to see if someone else can hit some productive Goodland Lime wells in Anderson County.

The precipitous drop in oil prices (now down to $66/barrel), may bring a halt to some activity here. However, EOG has continued a second round of leasing via Triad Land Services. I think we will find out in January if EOG will be continuing their exploration efforts here.

Allen - You know if any new wells have been installed in the Herrington 1H area or of any other relevant activity in the area (NE Anderson Cty)?

PS Sorry for misspelling your name.

James, the oil price collapse came at the worst possible time for Anderson County. I believe EOG was ready to start a drilling program beginning in Smith County and moving southward, but the opportunities here are not economic at $50 oil. EOG is now attempting to sell its 67,500 net acre position in Anderson and Cherokee Counties (bulk of the acreage is in Anderson). The flyer they had at the NAPE Expo a few weeks ago listed the prospective intervals as Goodland Lime, Kiamichi, Bexar, and Pine Island. The primary term on approximately 35% of their 3,000+ leases were set to expire this year, and EOG was not willing to invest more money at this time.

Meanwhile, however, Triad Land Services has been conducting a sizable new leasing effort in Anderson County. To date, they have recorded leases covering more than 10,000 gross acres. They are believed to be leasing for Southwestern Energy, a company that has specialized in unconventional plays (major player in the Fayetteville Shale). I would not be surprised to see Southwestern acquire at least a portion of EOG's acreage.

Other companies with leases in northern Anderson County (Jamex, Walter Oil and Gas, R Lacy, Mustang Drilling) are remaining on the sidelines for now.

Has anyone's leases been renewed? Mine will expire in October but Texline has the option to renew again for two years. Just curious with the crashing oil prices if any of the other recent leases are getting renewed.