Mesa provided an update on its Java Field natural gas development project and its other corporate activities.
The initial round of testing and analysis of the Marcellus Shale on the Company's property in the Java Field in Wyoming County, NY provided a solid foundation of data that strongly supports further development of the Marcellus in western New York. Formation pressures and flow-back rates were much higher than expected providing a clear indication of the potential of the resource. The Company now believes that shallow horizontal drilling, as is currently being done successfully at this depth in the Fayetteville Shale in northern Arkansas, is ultimately what is needed to maximize the resource. However, the current regulatory limits in New York regarding water volumes for hydraulic fracturing have rendered that approach unfeasible for the time being. As soon as the New York Department of Environmental Conservation has completed its work relative to permitting of horizontal wells and is prepared to issue permits, the Company expects to proceed with the next phase of development of the property and the expansion of its acreage position in western New York. In the mean time, enhancement of the existing wells and pipeline systems in the field is ongoing.
As a result of the above, the Company has redirected its focus and growth strategy to aggressively pursue the potential acquisition of existing, producing oil properties in the Gulf Coast region in an effort to expand and diversify its asset base.
"We have identified a number of potential acquisition targets along the Texas and Louisiana Gulf Coast and we are actively evaluating those properties as well as various potential acquisition financing strategies," said Randy M. Griffin, CEO of Mesa Energy Holdings. "Several members of our management and technical team have extensive backgrounds in the management and operation of properties of this nature, so it is an easy and natural shift in focus for the Company."
Most Popular Articles
From the Career Center
Jobs that may interest you