Mesa Energy Holdings, Inc. Announces Results of Year-End 2011 Reserve Report on South Louisiana Properties

DALLAS--(BUSINESS WIRE)--

Mesa Energy Holdings, Inc. (the “Company”) MSEH, an oil and gas exploration and production company, announced today the results of an independent study of the Company's oil and gas reserves on its five fields located in South Louisiana. This report is the Company's first complete evaluation of its five fields since the acquisition of the properties in July 2011 and has an effective date of January 1, 2012.

The report estimates that the Company's five fields have total proved reserves of 2.2 million barrels of oil and 7.87 billion cubic feet (BCF) of natural gas valued at approximately $159 million in undiscounted future net income or $106.9 million in future net income using a discount rate of 10% (PV-10). The proved producing reserves (PDP) are estimated to be 545 thousand barrels of oil and 2.6 BCF of natural gas with a PV10 value of approximately $33.8 million.

Total 3P reserves (proved + probable + possible) are 14.9 million barrels of oil and 40.88 BCF of gas valued at approximately $1.16 billion in net income in undiscounted reserves or $631 million in future cash flow using a discount rate of 10% (PV-10). Pricing was estimated on average at $106.19 per barrel of oil and $5.14 per thousand cubic feet (MCF) of gas. The average pricing reflects benchmark pricing (West Texas Intermediate and Henry Hub) plus the appropriate differentials to the extent allowed by SEC guidelines.

Average net production for the 4^th quarter of 2011 was approximately 357 barrels of oil per day and 2,007 MCF of gas per day (691 BOED) from 18 wells online. The Company anticipates a substantial increase in production this year as it continues its recompletion and enhancement program. In addition, the Company expects to commence the drilling of its inventory of proved undeveloped locations later this year.

“We are thrilled to have completed our first thorough reserve report which gives us a clearer picture as to the potential revenue stream over the next 20 years from our South Louisiana properties. We believe the increase in reserves will result in increased borrowing capacity under our senior debt facility which will allow us to accelerate our drilling and recompletion plans for our south Louisiana properties. We look forward to sharing our progress with our shareholders and the investment community over the next several months,” said Randy M. Griffin, CEO of Mesa Energy Holdings, Inc.

About Mesa Energy Holdings, Inc.

Headquartered in Dallas, TX, Mesa Energy Holdings, Inc. is a growth-oriented Exploration and Production (E&P) company with a definitive focus on growing reserves and net asset value per share, primarily through the acquisition and enhancement of high quality producing properties and the development of highly diversified developmental drilling opportunities. The company currently owns producing oil properties in Plaquemines and Lafourche Parishes in Louisiana as well as developmental properties in Wyoming County, NY.

More information about the Company may be found at http://mesaenergy.us.

Forward-Looking Statements

Certain statements in this news release, which are not historical facts, are forward-looking statements. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those currently anticipated due to a number of factors which may be beyond the reasonable control of the Company, including, but not limited to, the Company's ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the Company and to integrate and successfully exploit any resulting acquisitions, the availability and pricing of additional capital to finance operations and leasehold acquisitions, the ability of the Company to build and maintain a successful operations infrastructure, the intensity of competition, changes and volatility in energy prices and general economic conditions. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in the filings of the Company with the U.S. Securities and Exchange Commission at www.sec.gov.