Mainland Places Second Haynesville Shale Well on Production

Mainland Resources and its Operator have placed the Dehan et al 15H #1 well (Section 15, 13N-14W, DeSoto Parish, La.) on production.

The Dehan et al 15H #1 well had an initial production rate of 7.643 Mmcfe/d on a 14/64" (inch) choke with 8,396# flowing casing pressure on 8/18/09. The well has averaged 8.3 Mmcfe/d with a 8478# flowing casing pressure from 8/18/09 to 9/4/09. Mainland owns a 22.54% working interest in the well. The initial press release announcing the spudding of the well dated May 14, 2009 indicated that Mainland owned a 25.42% working interest. Upon completion by the Operator of the drilling title opinion for the drilling unit, it was determined that Mainland owned a 22.54% working interest in the well.

The Dehan et al 15H #1 is the third well to be drilled and second to be completed by the Operator in the Haynesville shale on Mainland's leases. The second well (Stevenson-Douglas 16-1) was drilled to 10,800 feet and the intermediate casing was run to this depth using a shallow rig. The lateral portion of the well is expected to be drilled with the well subsequently completed in the fourth quarter of this year.
The first well drilled (Griffith 11 #1) had an initial production rate of 23.3 Mmcfe/d on a 28/64" (inch) choke. The Dehan well has been kept on a tight choke of 14/64" (inch), which is one-half of the choke size placed on the Griffith well. The Operator has been performing tests with a number of wells in order to determine if increased backpressure will affect well productivity. The Dehan well is one of the test wells.

In order to compare the early life well performance of the Griffith well with the Dehan well and consider the different flowing conditions (ie. choke size, tubulars etc.), Mainland Resources engaged the Petroleum Engineering Firm, W.D. Von Gonten & Co. to carry out a well test analysis comparison. Von Gonten & Co. has completed numerous North Louisiana Haynesville Shale studies and is very experienced in the early stages of this play. The well test analysis comparison shows that there is no significant difference in the productivity between the Griffith and Dehan wells. The permeability-thickness map also shows both wells to be in a very good area.

Company President Mike Newport states, "Bringing the Dehan well online further validates our acreage in our DeSoto Parish, Louisiana leases. We now have our second highly productive Haynesville shale gas well delivering gas and generating revenue."