Mainland Drills Ahead at Buena Vista Well
Mainland Resources reported that a newly realized increase in interest has advanced the Company's plans to drill both the Buena Vista well in Mississippi, and Cotton Valley wells in Louisiana, ahead of schedule.
INCREASED INTEREST TO 72% IN THE BUENA VISTA PROSPECT, MISSISSIPPI
The Company's working interest in the Burkley-Phillips No.1 well has increased from 45.9% to 72%. As Operator, the Company has a scheduled spud date as early as May 24, but not later than June 15, 2010. The previous well spud date was anticipated in the latter part of Q2 2010. Mainland currently holds interest in excess of 17,000 acres in the Buena Vista Prospect. The increase in interest is the result of non-payment by the Company's joint-venture partner, American Exploration Corporation and subsequent exercise of an option by Mainland as stated in the Company's press release of April 26, 2010.
PARTICIPATION OF GUGGENHEIM PARTNERS
Mainland believes it now has the funds in place to carry out the entire drilling and completion of the project and does not intend to seek additional partners on the Buena Vista Project prior to well completion.
HAYNESVILLE DIVESTITURE TO EXCO
As reported on April 22, 2010, Mainland closed the sale of its interest in the Haynesville formation of the East Holly Prospect in Louisiana to EXCO Operating Company, LP, for approximately $28.2 million. Mainland sold its 40% working interest in all rights deeper than the base of the Cotton Valley formation (which has been defined to be 100 feet below the stratigraphic equivalent of the Cotton Valley formation) in the East Holly Field, but continues to own a 100% interest in all rights above this depth.
DRILLING ON COTTON VALLEY WELLS IN DESOTO PARISH, LA SET
The rights retained by Mainland in all formations above the base of the Cotton Valley formation in the East Holly Field encompasses 2,745.65 net acres with an estimated 65 net potential drilling locations. Mainland plans to drill three wells in the Hosston/Cotton Valley formations in 2010, as well as exploring the Upper Bossier Formations.
Mainland is finalizing the drilling contract with Brammer Engineering, Shreveport, Louisiana. Brammer, a highly regarded operator with extensive experience in North Louisiana, will act as contract Operator for Mainland in drilling the first well on its East Holly Prospect to test the Hosston, Cotton valley and Upper Bossier formations. The Company plans to spud the first well on the East Holly Field, as Operator, as early as May 24 but not later than June 15, 2010. The original spud date for the well was anticipated in early Q3 2010, putting Mainland well ahead of projected timelines on this project.