Mainland: Burkley Phillips' Gas in Place May Exceed 500 Bcfe
Mainland has received data that supports both higher adsorbed and free gas in place relative to previously reported volumes of gas in place on its Burkley Phillips No. 1 Well in Jefferson County, Mississippi.
In collaboration, a leading oil and gas services provider independently assessed free gas within the reservoir. That evaluation was performed across sixty (60) feet of section, which encompassed the twenty-one (21) foot cored interval in the wellbore, targeted so that all of the new core analyses could be accurately incorporated. Free gas calculated for this section was more than one and a half (1.5) times previous estimates for the same interval. If this assessment is representative of the entire interval, the gas in place in the Burkley Phillips #1 well could be in excess of 500 Bcf/section.
Mainland and its working interest partners control in excess of 17,800 net acres or 28 sections on the Buena Vista prospect area on which the Burkley Phillips No. 1 well was drilled to 22,000 feet and logged. A conventional core was secured just below 20,415 feet for analysis. Post merger, Mainland owns 92% of the 28 sections in the Buena Vista prospect.
The Company announced on February 16, 2011, the initial shale gas analysis on the well demonstrated 331 billion cubic feet of gas in place (290 billion cubic feet free gas in place) per 640 acre section, however, new data received suggests that the earlier reported gas in place number could be markedly higher. Both free gas and adsorbed gas must be considered when calculating total gas in place within a reservoir.
The new data includes adsorption isotherm measurements taken from three shale samples within the cored interval. This data suggests that adsorbed gas storage capacity is at least three (3) times higher than volumes previously assumed when calculating gas in place, in turn suggesting that the shale's at Buena Vista are capable of retaining greater amounts of gas.
CEO of Mainland Resources, Mike Newport stated, "The new data we are receiving continues to be very encouraging. We are continuing with the in-depth analysis and are convinced that the Burkley Phillips #1 will show that we are looking at a significant gas reservoir here."
Further evaluation of this data is being conducted to assist in creating a composite resource value from the Burkley Phillips No. 1 well and its application to the entire reservoir covered by Mainland's 28 sections of land over the Buena Vista Prospect.