Mesa Energy Holdings Inc., Dallas, (OTCBB: MSEH) reports progress on its Coal Creek project targeting gas in the Hunton Sand, the Brent Sand, and a shallow Atoka gas reservoir in the Oklahoma Arkoma Basin.

The company has a 78% net revenue interest in eight oil and gas leases covering approximately 700 acres in Sequoyah County. The project is operated by a third party.

The project includes two recently drilled wells, the Cook #1 and Gipson #1. Both wells have been successfully completed, tested and connected to an Arkansas Oklahoma Gas Co. sales line and initial production and sales have begun from these wells. Mesa Energy believes there are multiple offset drilling areas and expects them to be drilled beginning in 2010.

Mesa Energy chief executive Randy Griffin says, “Although our philosophy is to operate all of our properties, we have a long-standing relationship with the operator on the Coal Creek project and we are pleased with the working arrangement in place. We are also pleased with the completion and tie-in of our two wells, and we look forward to further drilling developments on the property in 2010.”

The Arkoma Basin is in southern Oklahoma and western Arkansas consisting of Middle Cambrian to Late Mississippian age carbonate, shale and sandstone sediments. The Brent Sand is a sandstone member of the Pennsylvanian age Atoka Group, a sequence of marine, silty sandstones and shales generally in eastern Oklahoma and western Arkansas and the Hunton Sand is a Devonian-Silurian age group of interbedded limestone members primarily found in eastern Oklahoma.

Mesa Energy has oil and gas operations in the Appalachian Basin with a focus on the Marcellus shale in western New York.