Mesa Energy Snaps Up Pipelines with Java Field Acquisition
Mesa Energy Holdings acquired two pipeline systems with the acquisition of the Java Field project in Wyoming County in western New York. The first pipeline system, the Sheldon Pipeline, is a 12.4 mile pipeline and gathering system that serves the Company's existing field. It currently carries production from 15 of the 19 existing Java Field wells, as well as third party gas produced by U.S. Gypsum from its field northwest of the Java Field. The current production from the Java Field is being sold to U.S. Gypsum and the Beaver Hollow Conference Center in Java Center, New York.
The Sheldon Pipeline will provide an outlet for the significant volume of natural gas that the Company expects to be produced from its Java Field in the future, as well as potentially providing market access to third-party producers. This pipeline could provide a quick and easy gas transportation solution for other companies that are also drilling in the area. The Sheldon Pipeline System has an existing tap into a Dominion public intrastate transportation line located approximately 12 miles north of the Java Field. That line leads directly to eastern New York, providing long term, high capacity access to the millions of homes and commercial businesses located in major northeastern population centers. In addition, there are a number of other gas lines in near proximity to the Java Field and/or the Sheldon Pipeline providing strategic gas sales alternatives to the Company. The Company's ownership of the Sheldon Pipeline and the associated access to multiple markets will be extremely valuable as the Company develops the Java Field.
The second pipeline system, the Letchworth Pipeline, is a separate 2.5 mile system located near the Town of Perry in eastern Wyoming County and is not currently being utilized. The Letchworth Pipeline is located in an area of expanding interest for natural gas exploration, has an existing tap into a 22" Dominion pipeline and is currently being evaluated to determine its strategic value to the Company.
"Due to their location and strategic market access, these pipeline systems bring significant value to the Company, and we believe these pipeline assets provide us with the ability to develop and expand our holdings as well as to pursue strategic alliances with other mineral owners and operators in the area," said Randy M. Griffin, CEO of Mesa Energy Holdings, Inc.