Mesa Energy Acquires Pipeline Systems In Western New York

Published: 17-Mar-2010

Mesa Energy, an oil and gas exploration and production company, has acquired two pipeline systems with the acquisition of the Java Field project in Wyoming county in western New York.

The first pipeline system, the Sheldon pipeline, is a 12.4 mile pipeline and gathering system that serves the company's existing field. It currently carries production from 15 of the 19 existing Java Field wells, as well as third party gas produced by US Gypsum from its field northwest of the Java Field. The current production from the Java Field is being sold to US Gypsum.

The Sheldon pipeline will provide an outlet for the significant volume of natural gas that the company expects to be produced from its Java Field in the future, as well as potentially providing market access to third-party producers, the company said.

This pipeline is expected to provide an easy gas transportation platform for other companies that are also drilling in the area. The Sheldon pipeline system has an existing tap into a Dominion public intrastate transportation line located approximately 12 miles north of the Java Field.

The second pipeline system, the Letchworth pipeline, is a separate 2.5 mile system located near the town of Perry in eastern Wyoming county and is not currently being utilized. Mesa Energy said that the pipeline is located in an area of expanding interest for natural gas exploration and has an existing tap into a 22" Dominion pipeline and is currently being evaluated to determine its value to the company.

Randy Griffin, CEO of Mesa Energy, said: "Due to their location and strategic market access, these pipeline systems bring significant value to the company and we believe these pipeline assets provide us with the ability to develop and expand our holdings as well as to pursue strategic alliances with other mineral owners and operators in the area."

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