Mainland Resources, Inc. (MNLU.OB) acquires, explores, and develops oil and gas properties in the United States, with a primary focus in the East Holly Field of De Soto Parish in Louisiana, where the company has existing leases. The company is working toward capitalizing on Haynesville Shale, Cotton Valley and Hosston formations, located in Northwest Louisiana, with Haynesville Shale being the emerging big player in natural gas.
Mainland Resources’ property in the DeSoto Parish is approximately 2,695 acres, and was originally acquired for exploration of the Hosston and Cotton Valley formations. Major natural gas resources in the Haynesville Shale were discovered after Mainland had acquired these leases, and analysts predict that the Haynesville Shale will potentially be the most significant onshore natural gas discovery in North America. Mainland Resources holds working interest in four sections of the East Holly Field: 100% stake in the first section, 98% stake in the second section, and 75% stake in the other two sections.
Mainland Resources has already benefitted from its previously acquired leases in the East Holly Field of the De Soto Parish, with prices averaging $270 per acre. In June 2008, post-Haynesville Shale discovery, the State of Louisiana lease sale data showed lease/acre prices at $17,000 acre. Mainland has secured funding to perform drilling of a test well on their East Holly Field property. The company expects future success in the Haynesville Shale and anticipates joint venture development of additional properties.
The global consumption of natural gas is expected to exceed 115.9 trillion cubic feet by the year 2010. By the year 2030, natural gas consumption around the world could reach 163.2 trillion cubic feet.
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