Mainland Resources has entered into a marketing services agreement (MSA) with SEI Energy (SEI) to provide gas marketing options.
SEI Energy is a provider of marketing services and a purchaser of natural gas production in the Mississippi area. Its initial services under the MSA to Mainland will include an analysis of the Buena Vista area gas marketing conditions and outlook, availability of treatment facilities, pipeline availability and capacities, system pressures, gas quality specifications, midstream/gathering and downstream installation options, pricing strategies, cost benefit analysis and potential markets. SEI will also advise Mainland on natural gas liquids marketing options.
The term of the MSA is for the latter of a period of one year or until the company delivers its first production.
In accordance with the terms of the MSA, the parties have agreed to enter into a form of Natural Gas Purchase Agreement (GPA) prior to the company initiating production, and which GPA will contain certain already agreed upon provisions and inclusive of, without limitation, SEI's obligation to deliver optimal gas price value for the company.
Company CEO Nick Atencio stated, "As we enter into the analysis and testing phase for the Burkley-Phillips #1 well, it is important to have a more detailed understanding of the gas marketing, treatment and transportation environment in our operating area. This agreement allows us the flexibility to investigate the key factors related to monetizing gas in this area and also provides Mainland the ability to maximize revenues by maintaining the most competitive marketing terms available in our area. We look forward to working with SEI and their experienced marketing and transport staff."
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