MNLU’s property is located in Haynesville
, Louisiana . News Video Link, “Huge natural gas field found
in Northwest Louisiana ”
http://www.ktbs.com/news/Huge-natural-gas-field-found-in-
Northwest-Louisiana-10507/
Mainland Resources is a junior resource company
engaged in the exploration and development of oil and gas resources.
The Company's current initiatives are focused on the acquisition
and development of leases in Louisiana's emerging gas region near
Elm Grove.
Mainland Resources, entered into an option agreement
with Kingsley Resources, Inc., on February 27, 2008, pursuant
to which the Company acquired all the right, title, and interest
Kingsley holds in and to certain leasehold estate.
The leasehold estate refers to approximately
2551 net acres located in De Soto Parish in northwest Louisiana.
The leases create a contiguous block of acreage on the southeast
flank of the East Holly field.
Based on well bore petrophysical analysis, actual
production tests, mud logging records and electric log analysis
from wells located in the area of the lease block, Mainland Resources,
Inc. expects to target the Hosston and Cotton Valley sandstone
and Haynesville shale formations. Historically, recoverable gas
volumes range from 2 Bcf to a high of 32 Bcf per section.
Other De Soto Parish area operators include Petrohawk
Energy, El Paso Gas, Winchester Petroleum, Chesapeake Energy and
Encana. All are actively involved in acquiring new land positions
in the area on which to drill.
Petrohawk recently completed a horizontal Cotton
Valley well that, according to news releases, is said to have
tested 16.0 Mmcf/d. El Paso has recently drilled and completed
a vertical Cotton Valley well that, according to news releases,
is said to have tested 2.3 Mmcf/d. Chesapeake has only very recently
announced its first discoveries in the Haynesville Shale, which
it states could produce over 3 Bcf and some analysts suggest may
produce 5+ Bcf gas per well.
The Kingsley Leases were the subject of a purchase
agreement dated December 11, 2007 and modified February 1, 2008
(collectively, the "Leasehold Purchase Agreement") between
Kingsley and Permian Basin Acquisition Fund, pursuant to which
Kingsley acquired the sub-surface rights provided for in the Leases.
In accordance with the terms and provisions
of the Option Agreement: (i) Kingsley granted to the Company all
of its right, title and interest in and to the Leases and the
Company assumed all rights, duties and obligations of Kingsley
under the Leasehold Purchase Agreement; (ii) the Company agreed
to pay to Kingsley $100,000.00, which is payable as a reimbursement
of a deposit paid by Kingsley to Permian under the Leasehold Purchase
Agreement; and (iii) on or about March 15, 2008 or at the time
the Company pays the $100,000.00 to Kingsley under the Option
Agreement and such other amounts to Permian as required of Kingsley
under the Leasehold Purchase Agreement, the right, title and interest
of Permian and Kingsley in the Leases will be transferred and
delivered to the Company, subject to residual royalty payment
and other rights reserved under the Leasehold Purchase Agreement
and the Option Agreement by Permian and Kingsley.
On March 14, 2008, Mainland Resources, Inc. paid
the aggregate amount of $587,596.00 to Permian, which did not
include the $100,000.00 required to be paid by the Company to
Kingsley under the terms of the Option Agreement. Arrangements
for payment of the $100,000.00 to Kingsley are pending. In accordance
thereof, the right, title and interest of Permian and Kingsley
in the Leases was transferred to the Company effective March 14,
2008 by way of assignment.
Mainland
Resources Inc.