Mesa’s President, Kevin Chennault has been involved in the oil and gas industry since January 1982. His employment started with Galleria Energy Corporation in Dallas, Texas where he assisted in financing several oil and gas projects. The initial project consisted of four wells that were drilled in the Rice Field near Mexia, Texas. Two of the four wells were completed as oil producers. Shortly thereafter the company turned its focus to the Appalachian Basin in West Virginia where Galleria Energy and its subsidiary companies successfully drilled and completed more than 60 consecutive natural gas wells in Ritchie, Wirt and Wood Counties.
In late 1984, Mr. Chennault formed Tex-Oil Drilling & Exploration, Inc., and brought on partners from Galleria Energy. Tex-Oil continued drilling in West Virginia along with providing field service work for various companies such as Texas Oil & Gas. In 1986, Tex-Oil began drilling wells in Electra, Texas near Wichita Falls. Overall, Tex-Oil enjoyed a 75% success rate in this area of North Texas until Mr. Chennault had the opportunity to sell his interest in the company to his partners. Shortly thereafter, Tex-Oil moved its offices from Dallas to Louisville, Kentucky to pursue opportunities in Kentucky, West Virginia and the Appalachian Basin.
In 1986 Mr. Chennault formed North Dallas Energy Company. NDEC continued drilling wells in the Wichita Falls area with 100% success. In 1988, NDEC helped initiate a project that became known as the CITE “Crack in the Earth” in Eastland County, Texas. That project resulted in drilling the deepest well in Eastland County at the time. The purpose for drilling the CITE was an attempt to prove up the long debated theory of sub-basement sedimentation and over thrusting. Evidence to support this theory was discovered in this well, which drew national media attention. NDEC was instrumental in negotiating an agreement that allowed American Petrofina (FINA) to participate in the deepening of the well and provide geophysical services. NDEC continued participating in wells in North Central Texas and South Texas in the Austin Chalk until January of 1992 when NDEC became Mesa Resources, Inc.
Mesa Resources, Inc. was formed not only to continue in the oil and gas industry, but provide various services such as: consulting, evaluation and finance for both industry and non-industry companies. In 1999 while consulting for a small public company, Mr. Chennault was instrumental in the acquisition of a 5,000-acre lease block in Hood County, Texas, that became known as the Hood 5000. Mr. Chennault was still intrigued with drilling deep to explore sub basement sedimentation. Utilizing the same geologist/geophysicist that worked on the CITE project, a certain area south of Tolar, Texas was selected to once again explore deeper horizons.
Hood County had been absent of drilling activity for some years but change was forthcoming. The decision was made to drill a shallow well to explore horizons that had been productive in the area years before. That initial well was drilled below 5,000 ft., encountering multiple formations, including the Barnett Shale. Mr. Chennault was intrigued with what was encountered in the Barnett Shale and recommended the company to take a closer look. The Barnett Shale was quickly developing into a significant play further to the north. The company however, decided to take a conservative approach and complete the well in the shallower Atoka formation since there were no producing Barnett Shale Wells in the immediate area.
Mesa negotiated a farmout to test the Barnett Shale, then successfully drills and completes four Barnett Shale Wells under that agreement. Additional operators began arriving in the area resulting in more wells being drilled. As a result of drilling the four original wells, the Newark East Field was extended to the south some 30 plus miles. The Barnett Shale now extends both east, west and further south. Mesa has generated and or participated in numerous Barnett Shale prospects in the counties of Hood, Parker, Tarrant and Wise. It has been reported “the Barnett Shale is the largest unconventional gas field in the world.”
Mesa is currently evaluating and participating in drilling prospects in Texas and Oklahoma.