Mesa Energy Holdings, Inc., an exploration stage oil and gas exploration and production company with a focus on the Marcellus Shale in western New York, provides an update on its activities in its Java Field prospect located in Wyoming County, New York, which it began reviewing in December 2009.
The Company recently announced the results of an independent engineering review of its material assets in the Java Field. Based on this review, as modified by the Company to better reflect the actual acreage acquired, the potential gas in place in the Marcellus and associated shale’s is believed to be in a range from 106 billion cubic feet (NYSE:BCF) at 50 feet of shale thickness to 425 BCF at 200 feet of shale thickness. Based on these numbers, potential recoverable gas reserves using a 25% recovery factor and 200 feet of shale thickness would be approximately 106 BCF. The Company projects total potential net revenue over the life of the project to be as much as $405 million gross before expenses, or $332 million net of expenses ($151 million at PV 10). These projections are based on a price of $5 per thousand cubic feet (NYSEMKT:MCF) of gas. Compare those prospective revenue figures to the net revenues recorded as $16,639 for the last fiscal year ending December 31st, 2009, and you’ve got a company with big potential.
As of 1:30 pm Wednesday, the company’s stock jumped $.17 or 22.67% to trade at $.92 a share on usual daily volume, as listed on the WMM MicroCap index found here.
Disclosure: no positions