DALLAS - September 5, 2012 (Investorideas.com Energy stocks newswire) Mesa Energy Holdings, Inc. (the "Company") (OTCBB: MSEH), an oil and gas exploration and production company, announced today that the Company has leased approximately 1,525 net acres in Garfield and Major Counties , Oklahoma . These leases are generally three year leases with subsequent option periods. In addition, the Company has closed on a Farmout Agreement with Twenty/Twenty Oil & Gas, Inc. covering approximately 1,720 net acres that are held by production. The Twenty/Twenty transaction also includes the outright purchase of three vertical Mississippian Limestone wells which will be operated by Mesa Midcontinent, LLC, the Company’s Oklahoma operating subsidiary. As a result, the Company now holds approximately 3,245 net acres in the Mississippian Limestone play.
The Company is continuing to actively lease additional acreage in the Mississippian Limestone play and to pursue agreements with operators to acquire acreage held by production. The Company’s acreage position in Major and Garfield Counties , Oklahoma is referred to as the Turkey Creek Project. The Company expects to begin a drilling program in the Mississippian Limestone in late 2012 or early 2013.
The Mississippian Limestone play in the area of interest is at vertical depths of approximately 7,000 feet and is up to 500 feet thick. The Woodford Shale, which would be a secondary objective in any well drilled, is immediately below the Mississippian Limestone, appears to be oil bearing and is approximately 50 to 80 feet thick. Based on numerous published reports and SEC filings by other operators in the area, potential reserves for horizontal wells in the Mississippian Limestone on a per well basis are estimated to be 300,000 to 500,000 barrels per well. The Woodford Shale zone would increase the potential reserves recoverable by the Company.
"The Mississippian Limestone in Oklahoma is a proven zone that has been drilled vertically in our area of interest for many years, so there is substantial well control information available. The emerging horizontal play is mature enough to have a substantial amount of public information available, yet early enough that acreage can still be acquired at moderate prices. This is an opportunity to establish a repeatable drilling program with additional leasing and acquisition opportunities in an area with a high drilling success rate. All in all, we believe this area offers the positive attributes that we are looking for in a drilling program," said Randy M. Griffin, CEO of Mesa Energy Holdings, Inc.
A more in-depth discussion of the Mississippian Limestone and the Company’s other core operating areas may be found in the Company’s Form 10-Q filed with the Securities and Exchange Commission on August 14, 2012 and available for review on our website or at www.sec.gov.
About Mesa Energy Holdings, Inc.
Headquartered in Dallas , TX , Mesa Energy Holdings, Inc. is a growth-oriented Exploration and Production (E&P) company with a definitive focus on growing reserves and net asset value per share, primarily through the acquisition and enhancement of high quality producing properties and the development of highly diversified developmental drilling opportunities. The company currently owns producing oil and natural gas properties in Plaquemines and Lafourche Parishes in Louisiana as well as developmental properties in Garfield and Major Counties , OK and Wyoming County , NY.
Certain statements in this news release, which are not historical facts, are forward-looking statements. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those currently anticipated due to a number of factors which may be beyond the reasonable control of the Company, including, but not limited to, the Company’s ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the Company and to integrate and successfully exploit any resulting acquisitions, the availability and pricing of additional capital to finance operations and leasehold acquisitions, the ability of the Company to build and maintain a successful operations infrastructure, the intensity of competition, changes and volatility in energy prices and general economic conditions. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in the filings of the Company with the U.S. Securities and Exchange Commission at www.sec.gov.
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