Mesa Energy Completes Initial Testing, Analysis of Java Field

Mesa Energy updated on its Java Field natural gas development prospect located in Wyoming County, New York.

The Company has completed its initial round of testing and analysis of the Marcellus Shale on its property in the Java Field in Wyoming County, NY and the results to date are very promising.

The Reisdorf Unit #1 well in the northern portion of the Company's Java Field was successfully re-completed, fracked and tested in the Marcellus Shale in May 2010 at a depth of approximately 1,380 feet. The frac was modest and highly focused due to current regulatory limitations. The shut-in pressure exceeded 900 psi (well above engineering estimates for this depth) and the estimated calculated open flow rate was 220 mcf per day. The well data also indicated at least two viable shale zones up-hole from the Marcellus as well as good potential in the Onondaga, a limestone just below the Marcellus.

The Ludwig #1 well in the southern portion of the Company's Java Field was successfully re-completed and fracked in the Marcellus Shale in June 2010. A total of 36 feet of well bore was perforated and fracked between 1,892 feet and 1,994 feet. Although initial pressures and flow-back rates were higher than expected, the pipeline limitations discussed below have made it difficult to successfully complete the flow-back of the frac water and, accordingly, there is not yet enough data to accurately quantify the gas flow.

Over the last several months, difficult economic conditions in the construction trade in the northeast region have forced the local manufacturing plant that is the current buyer of gas production from our Java Field wells to shut down the plant for a significant portion of each month. During those periods, which vary from 10 to 15 days out of each month, the Company has to shut-in its wells in the Java Field. In addition to limiting the numbers of days per month that the Company can produce and sell gas, these curtailments have made it very difficult to complete the flow-back of frac water from the Ludwig #1 and to properly evaluate that well's potential. The Company is currently evaluating gas sale and delivery options with two other nearby pipeline systems and expects to initiate a plan to divert the production to one of those pipelines very soon.

"We are convinced that there is great potential for development of the Marcellus Shale in western New York and expect to proceed with our development plans once the pipeline situation has been resolved," said Randy M. Griffin, CEO of Mesa Energy. "In the meantime, we are continuing to upgrade and enhance our existing wells and pipeline operations in the field. We will continue to provide updates as new information warrants."