Mainland Resources, Inc. is leasing additional acreage in the Haynesville Shale in Mississippi and now controls 8,500 acres in this emerging shale gas play in the southeastern United States.
Todayâ€™s announcement expands the acreage specified in the original agreement, which was signed in June 2009, by 500 additional acres. Mainland Resources must pay $300,000 by August 31, 2009 and the balance by October 15, 2009. When full payment is made, Mainland Resources will own a 100% working interest in the acreage.
Mainland Resources, Inc. recently closed on a funding agreement with Guggenheim Corporate Funding, LLC to provide $3.5 million in bridge loan financing. The company received a $1.7 million advance in this financing agreement and will use the funds for the acreage in Mississippi. The company will also use the bridge loan to fund drilling and completion costs on two wells in the Haynesville Shale on its acreage in the East Holly project area.
Mainland Resources, Inc. reported a successful well in East Holly in association with Petrohawk Energy (HK) on the Griffith # 1 well, which reported an initial production rate of 23 million cubic feet equivalent per day.