Replies to post #430 on Mesa Energy Holdings, Inc. (fka MSEH)

[biztech]

germanium123-I think they have factor the cost of the lease/property and compare to the LH fields. That's impressive if just the formula mixture resulted in an increase in production by 100%!

MHR has also succumbed to market pressure amidst production increases. Don't follow that stock much...


Thanks for introducting a new discussion!

good luck

[Bobwins]

much more complicated than that.

Mississippian Lime is pervasive. Covers a wide area of Oklahoma and Kansas but securing leases is harder because of the popularity of the area. I would guess that Mississippian prospective land is more expensive than what Mesa paid for Lake Hermitage.

The biggest difference is the opportunity. If Mesa can go down an existing wellbore for 275-350K and punch into a new zone and produce oil at 50-200bpd, they have a cash machine.

If they go to Oklahoma, they have to drill with powerful rigs able to drill horizontal wells. That costs 3.5-4.0million per well. They have to assemble bigger contiguous blocks of land to allow for the horizontal portion of the wells.

The difficulty involved in drilling, completing these wells is higher and you need to be able to secure high quality subs to do the work.

Having multiple plays is good. It spreads the risk but Mesa hasn't proven their initial thesis is correct. They told us that they had lots of recompletions in Louisiana that were cheap and easy to increase oil production. Let's prove the thesis, increase production and cashflow. That will give them a much stronger base to move into other plays.