The Haynesville Shale is considered the fourth largest natural gas field in North America, making it an obvious attraction to numerous exploration companies. One such company with the shale on its radar is Mainland Resources (OTCBB: MNLU), a junior company engaged in the acquisition and development of leases in the Haynesville Shale.
The company today announced a letter of agreement in which it will acquire 5,000 net acres in Mississippi, where it has plans to drill the first test well to evaluate the potential of the Haynesville Shale gas formation in the region. Mike Newport, president of Mainland Resources, says assessments of the Haynesville Shale point to potential.
“We have data that suggests the potential Haynesville Shale in this region could be similar in nature to the gas bearing Haynesville Shale in northwest Louisiana. Our geological team believes that this could be just as productive as the groundwork that’s been laid in the Louisiana play,” Newport stated. “No one knew just how good the deep shale in northwest Louisiana was until an exploration company stepped up and drilled the Haynesville, Hosston and Cotton Valley formations. That’s what we’re setting up to do in this potential new Haynesville shale play in Mississippi.”
Per the agreement, Mainland Resources will acquire a 100-percent working interest, and a 75-percent net revenue interest on all gas formations in the acquired acres in Mississippi. The company said it is on track for its first test well with joint-venture partner Petrohawk Energy in De Soto Parish, Louisiana. The acquisition is set for closing around October 15, 2008, subject to Mainland Resources due diligence review.
Let us hear your thoughts below: