subject: Mesa Energy Holdings Successfully Tests Reisdorf 1 (OTCBB:MSEH) [print this page] Mesa Energy Holdings Successfully Tests Reisdorf 1 (OTCBB:MSEH)
This morning, Mesa Energy Holdings (OTCBB: MSEH)announced the successful re-completion and testing of the Reisdorf Unit#1 well in its Java Field prospect located in Wyoming County, New York. The press release notes that the well has been tested in the Marcellus Shale at a depth of 1,368 to 1,389 feet. The well has apparently responded to fracking very well during a 4 hour test of procedures.
MSEH conducts Shale Gas excavation, an increasingly important source of natural gas in the United States. Devonian shale gas in particular, is generated from organic mud deposited during the Devonian Period. The heat and pressure resulting from these sedimentary deposits transforms the mud into shale the convenient bi-product of this process is natural gas. The gas accumulates underground and forms pockets throughout the deposit.
The methodology that Mesa uses to mine the natural gas is known as fracking, or hydraulic fracturing. Liquid is applied to the rock at high pressures to create cracks which then allow for the gas to flow easily into the desired well.
Conventional drilling in rock deposits often displaces fragments and debris and fills in the desired cracks, making the natural resource more challenging to get until a large pocket is reached. Fracking has come under fire over the past several years due to the choice of liquids by some companies and their detrimental effects on the environment. From my research, Mesa Energy Holdings only uses water. In addition to the successful testing of the Reisdorf unit, MSEH has also gathered data concerning further shale zones uphole from the Marcellus and in the Onondaga, limestone beneath the shale.
Mining for Natural gas among shale deposits is a challenging and developing field. MSEH is currently trading at .70 down .02 or 2.7% on a thin volume of 13k. The stock has been declining over the past three months despite the release of multiple positive reports. Although this stock is being dragged down along with the rest of Wall Street right now, after the BP spill I would not be surprised to see new litigation against off shore drilling, at least in the U.S.
This would mean that companies such as MSEH would have new demand for their methods and product as energy consuming customers look to alternatives in the decline of the oil supply.
Disclosure: no positions
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