Mainland to Flow Test at Burkley-Phillips Well
Mainland is progressing with the planning and design of the completion program for the Burkley-Phillips #1 well drilled in Jefferson County, Mississippi, allowing the Company to flow test the well and further determine its resource potential.
Mainland previously announced on February 23, 2011 that it had retained the services of Stephen Schubarth to design and supervise the hydraulic fracture treatment ("frac") of its Burkley-Phillips #1 Well in Jefferson County, Mississippi.
Mainland CEO Mike Newport stated, "Mr. Schubarth has commenced the work on the "frac" for the well. The current design is being structured to address three(3) different reservoir zones, extending from the Knowles Lime through the Bossier/Haynesville Shale and will be designed to connect as many of the shales together as possible for an optimal production rate."
Notably, Mr. Schubarth consulted directly with Leor Energy on designing the fracture stimulation for its Amoruso Prospect, which was a very successful Bossier reservoir play in East Texas. Leor had acquired mineral leases in East Texas in early 2003, and eventually sold its Deep Bossier interests, including the Amoruso Prospect, to a subsidiary of Encana.
The Company believes that Mr. Schubarth's experience with the Amoruso Field will benefit the Company given that Amoruso has several similarities to Mainland's Mississippi Buena Vista Prospect. The gas-bearing reservoir in both areas is within the Late Jurassic period and has a thickness of 2000 to 3000 feet. The succession consists of stacked shales and porous sandstones trapped within a very high pressure, high temperature environment. Amoruso was also developed by drilling vertical wells with fracture design and treatment expected to be similar to that needed at Buena Vista.
Additionally, the Company has requested bids from several industry leading companies to execute the frac stimulation and will select a provider from bids received.
Mainland is in the process of ordering completion equipment and has sourced longer lead equipment, including production casing, wellhead, tubing and other surface facilities to be installed on the well. They are also working on orders for the production packer and various other down-hole items required at and for completion.
Mainland expects to commence completion operations during the third quarter of 2011 and anticipates a timeline of approximately three to five weeks.
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 #1 well was drilled to 22,000 feet, cored and logged. Upon successful completion of its proposed merger with American Exploration, Mainland would own 92% of the 28 sections in the Buena Vista prospect. As recently announced, core analysis has determined that gas in place in the Buena Vista prospect could be up to 500 BCF/section based on the cored interval.