Mainland Resources, Inc., www.mainlandresources.com – the independent oil and gas explorer/developer/producer with its feet firmly planted in the world’s fourth largest gas field, the northern Louisiana Haynesville Shale play, and with its working-interest partners controlling some 17.5k net acres in Mississippi (on what MNLU considers a future major gas field), announced the commencement of drilling in MS on the Buena Vista Prospect.
The Buena Vista Prospect has been the subject of considerable research and analytical explorative efforts, largely because its geographic location and analysis of extant deep well drilling in the region indicate a major resource cache, resulting in the assertion that there exists an extension of the Haynesville Shale similar to what is seen in Louisiana.
The Burkley Phillips No. 1 well is targeting a depth of 22k feet, and should access at least 2,500 feet of Haynesville Shale according to data from the 22k foot Chevron Long offset well drilled at the location in 1981, which targeted the Smackover and Cotton Valley formations.
Additionally the Burkley Phillips No. 1 should allow the Operator ample ability to test several formations identified via the Chevron well data, which indicates a multiplicity of shallow and potentially productive formations as well as an extremely thick (at 19.4k feet) and high-pressure shale zone (22k psi, 14k psi higher than the average Louisiana Haynesville shale well).
The Chevron well wrapped up with a controlled blowout, having never reached the Smackover formation, and was plugged and abandoned due to a lack of technology to complete the project in 1981.
Given the substantial 17.5k net acres (recently validated by reprocessed seismic data), there is the potential for more than 220 drilling sites at 80-acre spacing per well if the Burkley Phillips No. 1 proves successful.
President of MNLU, Mike Newport, noted the skilled planning and hard work which has culminated in the drilling on the Buena Vista Prospect, which is viewed as a huge opportunity for the Company and its shareholders, who can look forward to production and revenue from the multiple potentially productive zones as well as the “high-pressured Haynesville Shale zone”.
When the previously announced proposed merger with American Exploration Corp is completed, MNLU will have a 92% working interest in the well, with Guggenheim Energy Opportunities Fund having the remainder.