Citing cash-flow constraints resulting from hurricanes Gustav and Ike combined with the collapse of oil prices, Mesa Energy Inc. , Dallas, (Pink Sheets: MSEG) has transferred ownership of subsidiary Poydras Energy Partners LLC to its prior owners at no cost in exchange for a release of any responsibility for the liabilities and contractual obligations of Poydras.
Mesa acquired Poydras, a Louisiana operating company, in January 2008, from a public company focused on the deep water. Poydras held a 30% interest in the Main Pass 35 project in Placquemines Parish, Louisiana, which had been producing 150 barrels of oil per day prior to being shut down in advance of Hurricane Katrina. While the wells were undamaged in the hurricane, the processing facility suffered significant damage and was being repaired at the time of purchase. As of year-end 2007, net proved developed nonproducing reserves were 109,000 barrels of oil and total proved reserves were 162,000 barrels of oil and 54 million cubic feet of gas.
As a result, Mesa will no longer be involved in the Main Pass 35 project or the IP #1 well. The effective date is June 1.
Mesa chief executive Randy M. Griffin says, “Although we are very disappointed with the outcome of these efforts, we believe it is in the best interest of Mesa and its shareholders that we take this action and move forward with the implementation of our business plan.”