Mainland Preps Drilling for 1st Cotton Valley/Hosston Well
Mainland Resources reported that the Company, as Operator, is preparing to drill its first Cotton Valley/Hosston well on its East Holly Prospect in northwestern Louisiana.
Mainland and Brammer Engineering, Inc. have entered into a Contract Operating Agreement dated April 1, 2010 relating to the first of three wells that Mainland is planning to drill in the Cotton Valley/Hosston and Upper Bossier formations of the East Holly Field. The initial well is to be drilled in Section 11, T 13N-R14W, DeSoto Parish, Louisiana, to test these formations. Brammer will act as contract operator for Mainland Resources, Inc.
Mainland has initiated the drilling and site preparation necessary to spud the well on or before June 15, 2010.
Brammer Engineering is a highly qualified contract operator that has been active in the Louisiana and Gulf Coast Region for 40 years. It has drilled over 130 wells and acted as operator on more than 300.
Detailed analysis of the Cotton Valley/Hosston and Upper Bossier formations on the East Holly Field has been facilitated by review of the drill logs obtained from the Company's previous Haynesville Shale joint venture partner, Petrohawk Energy. The four recent wells drilled by Petrohawk on Mainland's leases calculate as productive from all three formations.
The rights retained by Mainland in all formations above the base of the Cotton Valley formation in the East Holly Field encompass 2,745.65 net acres with an estimated 65 net potential drilling locations.
Depending on results of the Upper Bossier formation, the total completed well cost is estimated at between US $2 million and $2.25 million dollars.
Mainland will fund 100% of the costs of this initial well.