Mainland Resources Inc. is an energy company engaged in the exploration and production of oil and gas resources. The Company is focusing on the continued development of their producing assets in the Haynesville Shale and the acquisition and development of leases in emerging oil and gas regions with the potential for significant discoveries. Founded in 2008, Mainland Resources Inc. trades on the OTC Bulletin Board and they have their headquarters in Houston, Texas.
Mainland Resources, Inc. launched exploration in the Haynesville shale play with joint-venture partner and operator, Petrohawk Energy. Mainland Resources, Inc. and Petrohawk Energy drilled a discovery well that came on line in January 2009 at 23.3 Mmcfe per day; with an estimated reserve of 7 to 15 Bcf. Mainland can drill up to 25 Haynesville wells on their DeSoto parish leases.
Earlier this month, Mainland Resources reported that they sold a 40 percent working interest in the Haynesville Shale. This includes all of the rights 100 feet below the stratigraphic equivalent of the base of the Cotton Valley formation in the East Holly field, DeSoto Parish, Louisiana. This represents a 40 percent working interest in 2,903.07 gross acres or 1,162.3 net acres and includes all of the Haynesville shale interest of the Company in Louisiana. This sale does not affect any rights on the DeSoto Parish lease lands tied to formations outside the described zone.
Mainland retains all rights in 2,745.65 net acres as to all formations above the base of the Cotton Valley formation. This includes the Cotton Valley and Hosston zones, which have an estimated 65 net potential drilling locations. The Company plans to drill three wells as operator this year in the Hosston/Cotton Valley formations on their DeSoto Parish leases. In addition, they plan to drill an initial well on their Buena Vista project in Mississippi in the Haynesville Shale formation in Q3 2010.
Last week, American Exploration Corporation and Mainland Resources, Inc. announced that their respective Boards of Directors approved a stock-for-stock merger to be effected under the laws of Nevada. The companies signed a definitive Merger Agreement and Plan of Merger. If the merger completes, Mainland Resources, Inc. will be the surviving corporation. They will become vested with all of American Exploration’s assets and property. American Exploration’s stockholders will receive one share of Mainland common stock for every four shares of American Exploration common stock they own, under the terms of the Merger Agreement.
On March 25, 2010, Mainland Resources, Inc. reported that the Company issued an AFE (Authority for Expenditure) for the Burkley-Phillips No. 1 well to undergo drilling in Jefferson County, Mississippi. Mainland, as the operator, intends to drill the Burkley-Phillips No. 1 well to the Haynesville Shale Formation on the Buena Vista project in Jefferson County. The expectation is that the well will undergo drilling to a total depth of 22,000 feet or a depth sufficient to evaluate the Haynesville Shale Formation.