Mesa Energy Enters Drilling Agreement with Payson
Mesa Energy has entered into an agreement with Payson to manage the drilling, completion and production of the Auldean Brown #1 well, a 10,350 ft. conventional oil test in Grayson County, Texas.
Payson owns or controls approximately 800 net acres in the North Perrin Air Force Base Field, a mature and highly productive field located approximately three miles northwest of Sherman, Grayson County, Texas. Grayson County is regarded as one of the most prolific oil and gas producing counties in Texas. Dozens of wells have been drilled and completed in the North Perrin Field and the surrounding area since the 1950’s. Recent strengthening of oil prices has generated renewed interest in the drilling of conventional oil both vertically and horizontally.
There are at least seven potentially productive zones in the North Perrin Field and the cumulative oil production from each completed zone in a typical well has averaged around 100,000 barrels of oil along with 500 million cubic feet of gas. Payson’s evaluation of nearby production history suggests initial production rates in excess of 200 barrels of oil per day are achievable from vertical wells, and their technical team believes that there is excellent potential not only to establish new production by vertical drilling but also in the application of leading edge technology by drilling some of the productive zones horizontally. The experience of the Company’s management team in horizontal drilling will be a great asset to this effort. Payson expects to drill 8 to 10 wells or more on its acreage over the next eighteen to twenty-four months.
"Payson has assembled an outstanding acreage position in this highly productive field and we are excited about the potential of this project," said Randy M. Griffin, CEO of Mesa Energy. "We look forward to lending our expertise to this effort and are actively exploring the potential participation by the Company in future wells."