Mesa Energy is Using Hydraulic Fracturing on Two Wells in Western New York – Right Now

From the “continues to be interesting” department: Mesa Energy, new owner of the Java Field in Western New York State, has started hydraulic fracturing of two Marcellus Shale wells in the Java Field. Yes, you read that right. Fracking is happening NOW. In New York State. The catch? They’re both vertical wells. Since fracking horizontally drilled wells is still on hold in New York, Mesa can’t drill horizontally. But they have received permission from the New York Department of Environmental Conservation to frack vertically on two of their wells—and they are doing it.

Mesa press release issued today:

DALLAS—Mesa Energy Holdings, Inc. (the “Company”), 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 re-completion of the Reisdorf Unit #1 well in its Java Field prospect located in Wyoming County, New York.

The Reisdorf Unit #1 in the northern portion of the Java Field has been successfully re-completed and fracked in the Marcellus Shale. The well was perforated at a depth of 1,368’ to 1,389’ and fracked with 74,000 gallons of slick water and 105,000 lbs. of proppant (sand) combined with Nitrogen assist. Flow-back of the frac water is continuing according to plan. Although there is not yet sufficient data to accurately quantify the gas flow, there is clear indication of strong gas presence in the Marcellus zone. Planning for the re-completion and fracking of the Ludwig #1 is underway.

“We are very encouraged by the early data and believe that the performance of the well to date clearly supports our ongoing efforts in the Marcellus Shale,” said Randy M. Griffin, CEO of Mesa Energy Holdings, Inc. “We will continue to provide updates as new information warrants.”*

*Mesa Press Release/Business Wire (May 12) – Mesa Energy Holdings, Inc. Provides Reisdorf Unit #1 Update

Mesa Energy Adds Downstater from NYC Dept. of Environmental Protection to Advisory Board

Mesa Energy keeps up the pace with the addition of former Deputy Commissioner of the New York City Department of Environmental Protection Robert Avaltroni. It certainly can’t hurt to have a downstater in your corner for the nasty fight that’s brewing over Marcellus drilling. New York City wants it banned statewide period, and City politicians regularly make noise about it. With former Gov. George Pataki (rumored to be considering a run for the NY Senate as well as a run for president), and with former New York State Senator Nicholas A. Spano, the addition of Mr. Avaltroni makes a truly formidable and influential group on Mesa’s advisory board.

From the Mesa Energy press release:

Mesa Energy Holdings, Inc. (the “Company”), an exploration stage oil and gas exploration and production company with a focus on the Marcellus Shale in western New York, announced today the appointment of Robert C. Avaltroni to the Company’s Advisory Board. Mr. Avaltroni has over 23 years of experience in addressing political and environmental issues in New York, thirteen of which were spent as Deputy Commissioner of the New York City Department of Environmental Protection.

“Robert is a great addition to our Advisory Board and rounds off a seasoned group of advisors,” said CEO of Mesa Energy Holdings, Inc., Randy M. Griffin. “His knowledge and experience regarding environmental issues as well as his longstanding relationships and extensive experience in New York city and state government will provide the Company with valuable insight and guidance as we move forward with the development of our Marcellus Shale projects in New York.”

“It is an honor to join such an astute group of directors and Advisory Board members,” said Mr. Avaltroni. “Randy has assembled an outstanding team and has my full support as we endeavor to lead the way toward environmentally friendly development of natural gas resources in western New York. New York has a tremendous opportunity to capitalize on the economic benefits that the Marcellus Shale brings, and I expect Mesa to be at the forefront of that effort.”

Robert C. Avaltroni was New York Deputy Commissioner of the Department of Environmental Protection (“DEP”) for 13 years. He was responsible for directing all environmental, chemical, biological and radiological initiatives in conjunction with the NYPD Counterterrorism/Intel Division, Dept. of Homeland Security, the Joint Terrorism Task Force, Federal Bureau of Investigation, Office of Emergency Management, and the Dept. of Energy. He was granted the highest security clearance “Q Clearance” in the United States. Mr. Avaltroni was New York Mayor’s “point person” with the White House and Senator Hillary Clinton, regarding the establishment of a 9/11 EPA led clean-up committee known as the “Blue Ribbon Panel of Experts”.

Mr. Avaltroni enhanced DEP’s hazardous materials response capabilities as a model for the nation. In this capacity, the Division of Emergency Response and Technical Assessment became the premier response team for chemical, biological and radiological threats. He also addressed prior longstanding environmental issues resulting in a positive dialogue with environmental advocates and community groups in New York.

In addition to being Deputy Commissioner of the DEP, Mr. Avaltroni was also First Deputy Commissioner for the New York City Sheriff’s Department, Chairman and Managing Director of Empire Commercial Services L.P. and Chief of Staff for the NYC Sheriff’s Department. Today, Mr. Avaltroni represents various entities including the Environmental Contractors Association of New York as Advisor/Consultant.*

*Business Wire (Apr 6) – Mesa Energy Holdings, Inc. Appoints Robert C. Avaltroni, Former DEP Deputy Commissioner, to the Advisory Board

Mesa Energy Gets NY DEC Approval to Convert Two Existing Medina Wells into Marcellus Wells

Mesa Energy has received a green light from the NY Department of Environmental Conservation to convert two vertical wells in Western New York from Medina gas to Marcellus gas. We also learn from the press release that the Marcellus Shale layer in the Java Field owned and operated by Mesa is about 200 feet thick across the entire area—much larger than originally thought.

Mesa Energy press release:

Mesa Energy Holdings, Inc. (the “Company”), an exploration stage oil and gas exploration and production company with a focus on the Marcellus Shale in western New York today announced that the Company has received permits from the NY Department of Environmental Conservation to move forward with its re-completion plans on two existing Medina wells in its Java Field natural gas development project in Wyoming County, New York.

“An initial round of location maintenance, through-casing logging and evaluation was completed on the two wells in December 2009, and now that we have our permits in place, we can begin the next phase,” said CEO of Mesa Energy Holdings, Inc., Randy M. Griffin. “The preliminary data obtained in December 2009 on both wells clearly supports our project in the Java Field and now that we have received permits, we can proceed with the final planning and execution of the re-completion of both wells.”

The through-casing logs that were run in December 2009 indicated that there is nearly 200 ft. of high quality shale with good organic content in the Marcellus zone; nearly twice as much as the Company initially anticipated. The two wells are approximately three miles apart and the log over the Marcellus zone in each is almost indistinguishable from the other. This indicates that the Marcellus zone appears to be evenly distributed across the acreage.

*Press Release (Apr 1) – Mesa Energy Holdings, Inc. Receives Permit Approval

Mesa Energy Adds Another New York Heavyweight Politico to Advisory Board

Mesa Energy, with drilling operations in Western NY, continues to add major firepower from New York’s political class to their advisory board. Previously it was former New York Gov. George Pataki (see this post). Today, Mesa has added former NY State Senator Nicholas Spano to the board. Mr. Spano knows the people, and the system in Albany, and he will no doubt help Mesa navigate the rough regulatory seas once horizontal drilling is approved in New York.

From the press release on Mesa’s website:

Dallas, TX – Mesa Energy Holdings, Inc. (the “Company”) (OTCBB: MSEH.OB), an exploration stage oil and gas exploration and production company with a focus on the Marcellus Shale in western New York, announced today that Nicholas A. Spano, former New York Senator, has been named to the Company’s Advisory Board. Senator Spano brings to the Company over 27 yeas of experience as a New York political leader and advocate for New York related matters.

“We welcome Senator Spano to our Advisory Board," said CEO of Mesa Energy Holdings, Inc., Randy M. Griffin. "With his strong background as a former New York State Senator and Assemblyman, he is a recognized authority in political issues. His support and guidance will be invaluable."

"I look forward to providing Randy with support and strategic guidance as he commences drilling activities in western New York," said Nicholas A. Spano. "With the Marcellus Shale in our backyard, there are great opportunities for the State to benefit from the Company’s activities. The Company intends to develop and produce natural gas in western New York which can potentially provide the local region with new jobs, tax dollars and a supply of natural gas."

As New York State Assemblyman (between 1979 and 1986), Mr. Spano served as chief executive of the Office of General Services (OGS), a large State agency that provides a broad range of support services that facilitate the operations of State government and that assist local governments, public authorities, public and private agencies. He ensured OGS provided government and nonprofit agencies with innovative solutions, integrated service, and best value, enabling the State of New York to function optimally.

In 1986, Mr. Spano was elected to New York State Senate as Senior Assistant Majority Leader. He also held various positions including Chairman of the Senate’s powerful Committee on Investigations and Government Operations; and Chairman of the Committees on Labor, Mental Health and Developmental Disabilities. Senator Spano represented District 35 in the New York State Senate until 2006.

Since retiring from the New York State Senate in 2006, Senator Spano has maintained his vast network of relationships with New York political and business leaders. Today he serves as president of Empire Strategic Planning, an experienced lobbying and government relations firm specializing in state and local advocacy in New York. He is also an Executive Director of Rand Commercial Services, a full service real estate financial institution with expertise in commercial and investment real estate.

Senator Spano is a member of the Richmond Children’s Center, Westchester Mental Health Association and Enrico Fermi Educational Foundation. He received a B.A. in Political Science at Iona College in New Rochelle, New York.

Mesa Energy (Mar 26) – Mesa Energy Holdings, Inc. Names Nicholas A. Spano, Former New York Senator, to the Advisory Board

Mesa Energy Fracking Two Wells in NY, Plans to Drill Additional 80 Vertical Marcellus Shale Wells in Java Field

As MDN previously reported, Mesa Energy, which owns the Java Field in Wyoming County, NY, is planning to convert two of the 19 gas wells on the property from Medina sandstone wells to Marcellus Shale wells. These are already drilled, vertical wells. We now have more details about what Mesa plans to do with these two wells, and with the Java Field. They are moving aggressively with Marcellus Shale gas using vertical drilling, giving them a head start on other energy companies.

From a press release by Mesa Energy issued today:

Mesa Energy Holdings, Inc. (the “Company”), an exploration stage oil and gas exploration and production company with a focus on the Marcellus Shale in western New York has announced that it has begun initial testing in its Java Field natural gas development project in Wyoming County, New York.

The Company has selected two of its nineteen existing Medina wells for testing of the Marcellus Shale. The two wells selected are approximately three miles apart. The testing process began in December 2009 with an initial round of location maintenance, logging and evaluation and the two wells will be re-completed once the required permits have been approved. The data obtained in December 2009 will be combined with additional data to design a frac program for both wells with these operations expected to be completed in the second quarter of 2010.

The Company believes that there are multiple stacked pay zones present in the field, including the Medina and Marcellus Shale zones and, possibly, the Utica Shale zone, and that there is also significant potential to enhance the production and lifespan of the existing Medina wells using modern technology.

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 shales is believed to be in a range from 106 billion cubic feet (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 (MCF) of gas.

CEO of Mesa Energy Holdings, Inc., Randy M. Griffin said, “The test results from the first two wells will be an integral part of our evaluation to determine the potential production capability of additional existing wells in the Marcellus Shale. We have already submitted permit applications and expect to receive approval shortly. We will update our shareholders on our progress.”

The Company believes that, in addition to enhancing its existing 19 wells, it can potentially drill and complete up to 80 new vertical Marcellus Shale wells on the project acreage and that the shales in the Java Field and surrounding area could provide an excellent opportunity to achieve significant daily production rates.

*Business Wire (Mar 25) – Mesa Energy Holdings, Inc. Announces Initial Testing in the Java Field

Mesa Energy Using Conventional Vertical Drilling for Two Marcellus Gas Wells in Western NY

It seems hardly a day doesn’t go by that Marcellus Drilling News doesn’t observe a new press release, interview or other mention of Mesa Energy and their recent drive into gas drilling in Western New York State. The latest is a clever move by Mesa—they’re converting two of 19 gas wells they own in the Java Field from Medina sandstone to Marcellus Shale wells.

For about 30 years, the 3,235-acre site called Java Field has been home to 19 natural-gas wells, all of them sunk into Medina sandstone. Mesa Energy Holdings recently took ownership of the site, and it has submitted applications to the state Department of Environmental Conservation to convert two of those wells into Marcellus Shale wells.

The DEC hasn’t issued the permits yet, but has posted a notice saying it intends to.

Because Mesa is proposing traditional wells, rather than a deep horizontal well that would use hydraulic fracturing, its project can move ahead.*

What remains to be seen is if the vertical well transformation will yield production levels profitable enough to make it worthwhile.

*Rochester City Newspaper (Mar 22) – Marcellus Shale’s northern promise

Former NY Gov. George Pataki Joins Advisory Board of Mesa Energy

Former New York Gov. George Pataki has joined the advisory board of Mesa Energy Holdings (headquartered in Dallas). Mesa holds leases and has active gas drilling operations in Wyoming County in Western New York State. Gov. Pataki, since leaving office, joined a law firm and started a consulting practice with a focus on environmental and energy issues.

According to the press release:

Headquartered in Dallas, TX, Mesa Energy Holdings, Inc. is a growth-oriented, exploration stage oil and gas exploration and production (E&P) company with a definitive focus on growing reserves and net asset value per share, primarily through the development of highly diversified, multi-well developmental and defined-risk exploratory drilling opportunities and the acquisition of solid, long-term existing production with enhancement potential. Although the Company is constantly evaluating opportunities in the nation’s most productive basins, the Company’s primary focus is currently on the Devonian Black (Marcellus) shale in the northern Appalachian Basin in western New York.*

Never mind the press release gobbledygook. What it means is this: Right now Mesa owns pipelines and active vertical wells in Western NY, but they’re betting big-time that horizontal drilling and hydro fracturing is coming to New York in the not-too-distant future, and they want an ace in the hole when it does. Welcome George.

*Business Wire (Mar 15) – Mesa Energy Holdings, Inc. Names Former New York Governor George E. Pataki to the Advisory Board