Mesa Energy Holdings, the Dallas-based E&P with an extensive portfolio of domestic holdings and an emphasis on growth via acquisition/upgrading sites, with multi-well, repeatable projects in low-risk basins being the central focus, reported the successful execution of some three-year leases on approximately 1,525 net acres today in Oklahoma's Garfield and Major Counties, as well as closing on another 1,720 net acres held by production via the Farmout Agreement with Twenty/Twenty Oil & Gas, Inc.
This is some prime territory for accessing the Mississippian Limestone, and the Farmout deal in particular is notable for including an outright purchase of three vertical wells slated to fall under purview of the company's Oklahoma-based operating subsidiary, Mesa Midcontinent, LLC. Mesa Energy is looking at late this year or early 2013 to commence a comprehensive drilling program in the Mississippian Limestone and is in ongoing due diligence to acquire additional interests to add to this enviable 3,245 net acre position.
The collective regional position in Major and Garfield Counties is known as the Turkey Creek Project and represents another superb addition to MSEH's already rapidly flowing production pipeline, which now totals some seven primary sites in New York and Louisiana. Now with a serious footprint in Oklahoma, MSEH is intent on maximizing productive capacity at Turkey Creek and is acquiring new acreage held by production to further shore up the company's footing.
With targets down about 7k feet in a nice, 500-foot thick layer and the Woodford Shale (another 50-80 feet) right beneath it as a tantalizing secondary, MSEH is eager to kick off the drilling program and get at those reserves. Speaking of which, were looking at a 300k-500k bbls per well in potential reserves from the Mississippian by all accounts, including the numerous published technical reports and SEC filings from regional operators.
CEO of MSEH, Randy Griffin, underscored the proven nature of the play, with extensive drilling in the region offering a good model for drill program results. Griffin called it a great opportunity for the company to setup exactly the kind of repeatable drilling situation they have focused on in Louisiana and elsewhere, accumulating acreage and eventual throughput momentum on proven targets in an area with abundantly clear success rates.
This emerging play is right in the sweet spot for MSEH: still young enough to be snapped up at prices that will potentially translate into big downstream shareholder ROI, yet established enough that there is a surfeit of high-quality well control and other data already in the public record.
For a more detailed look at technical data on the Mississippian Limestone, or to learn more about MSEH's operational footprint, investors should check out the latest SEC-filed 10-Q (Aug 14).
For more information, please visit the company's website located at: MesaEnergy.us
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