Mainland Resources, Inc. Operational Update, Spring 2010
HOUSTON, March 16 /PRNewswire-FirstCall/ — Following the March 15, 2010 announcement that it has entered into a Purchase and Sale Agreement of its producing Haynesville Shale assets in De Soto Parish, North Louisiana for proceeds of over $27 million, Mainland Resources, Inc. (OTC Bulletin Board: MNLU, Frankfurt 5MN), a Nevada Corporation (“Mainland“), provides the following operational update concerning its current assets and business plan:
Sale of Haynesville Interest (40% working interest):
Mainland Resources has sold a 40% working interest in the Haynesville Shale, which 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% 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.
Further Louisiana Assets (100% working interest):
Following the sale, Mainland retains all rights in 2,745.65 net acres as to all formations above the base of the Cotton Valley formation, including the Cotton Valley and Hosston zones, which have an estimated 65 net potential drilling locations. A reserve report was prepared by T.W. McGuire & Associates, Inc. dated December 9, 2008 for the Griffith 11-#1 well that attributes the Hosston/Cotton Valley formations with gas reserves in excess of 2 BCF. The three recent wells drilled by the original Operator through these zones to the Haynesville formation calculate as productive.
Based on the data and economics, Mainland plans to drill three wells as operator in 2010 in the Hosston/Cotton Valley formations on its DeSoto Parish leases. The Company expects that these formations will provide continual solid pay with little risk and predicable development costs.
Mississippi Assets (45.9 % working interest):
Mainland plans to drill an initial well on its Buena Vista project in Mississippi in the Haynesville Shale formation in Q3 2010.
Use Of Proceeds:
Mainland Resources, Inc. intends to use the US$27+ million proceeds of the sale of its Haynesville Assets to fund the drilling of the initial well on the Buena Vista project in Mississippi, as well as commence development drilling on the Hosston/Cotton Valley formations in the East Holly Field, Louisiana, and to retire its debt with Guggenheim Partners LLC.
About Mainland Resources, Inc.
Mainland Resources is a junior company engaged in the exploration and development of oil and gas resources. The Company’s current initiatives are focused on the acquisition and development of leases in emerging gas regions with the potential for discoveries including the Haynesville shale.
Symbol: MNLU – OTCBB, Symbol: 5MN; Frankfurt, WKN No.: A0ND6N
Investor Relations Contact: (USA) Tel. 281-469-5990 Investor Relations (Europe) Tel. +49-69-7593-8408
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EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS “ESTIMATE,” “ANTICIPATE,” “BELIEVE,” “PLAN” OR “EXPECT” OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH PROPERTY DEVELOPMENT AND FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY’S MOST RECENT ANNUAL REPORT ON FORM 10-KSB AND ON FORM 10-QSB AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY’S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY’S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY’S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
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SOURCE Mainland Resources, Inc.