Mainland Resources, Inc. and Petrohawk Energy Corporation Enter Definitive Agreement for Joint Development of Haynesville Shale Property, Louisiana
Mainland Resources, Inc. and Petrohawk Energy Corporation Enter Definitive Agreement for Joint Development of Haynesville Shale Property, Louisiana
August 5, 2008 9:15 AM ET advertisement
HOUSTON, Aug. 5 /PRNewswire-FirstCall/ -- Mainland Resources, Inc., a Nevada corporation (the "Company") (OTC Bulletin Board: MNLU; 5MN-Frankfurt) and Petrohawk Energy Corporation ("Petrohawk") HK have signed a definitive binding agreement for the joint development of the Haynesville Shale on Mainland Resources' properties ("the Leases") in De Soto Parish, Louisiana effective August 4, 2008. This agreement follows the companies' initial Letter Agreement announced July 15, 2008 and closes the transaction.
Mainland Resources, Inc. holds interest in approximately 2,695 net acres which form part of the East Holly Field in De Soto Parish, northwest Louisiana.
Under the terms of the Definitive Agreement, Petrohawk agrees to pay 100% of the costs of development associated with the first well drilled below the Cotton Valley Formation, including drilling, completing and fracture stimulating, as well as costs up to and including pipeline connection. Petrohawk also agrees to pay 80% of all costs of the second well drilled on the Leases below the base of the Cotton Valley and Mainland agrees to pay 20% of the costs. For the third, and all subsequent wells drilled on the Leases below the base of the Cotton Valley Formation, Petrohawk will pay 60% and Mainland will pay 40%.
Mainland will immediately transfer 60% of its De Soto Parish leases to Petrohawk, but only as the Leases relate to all depths below the base of the Cotton Valley Formation, and specifically the Haynesville Shale. Mainland retains rights to all Cotton Valley and Hosston formation production on these Leases. Petrohawk agrees to gather and market Mainland's production from above the base of the Cotton Valley Formation, pursuant to a mutually acceptable agreement.
Mainland Resources President Mike Newport states, "This is a great day for Mainland Resources. With Petrohawk fully on board, we are ready to move ahead with drilling our Haynesville Shale leases immediately."
Petrohawk (or its affiliate) will be designated Operator on all development. The Griffith Well No. 1-H is currently on Petrohawk's rig schedule to spud in September 2008. Mainland Resources management expects to provide news on site preparations, operational developments and drill rig progress within the week.
About Petrohawk Energy Corporation
Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of oil and gas, with properties concentrated in North Louisiana (Haynesville Shale, Elm Grove field and Terryville field), Arkansas (Fayetteville Shale), East Texas, Oklahoma and the Permian basin.
About Mainland Resources, Inc.
Mainland Resources is a junior 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 northeastern gas region that is gaining notoriety for recent discoveries in the Haynesville shale.
Symbol: MNLU - OTCBB, Symbol: 5MN; Frankfurt, WKN No.: A0ND6N
SAFE HARBOR STATEMENT - THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE," "ANTICIPATE," "BELIEVE," "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH PROPERTY DEVELOPMENT AND FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-KSB AND ON FORM 10-QSB AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. EACH OF THE NASD, THE SEC AND THE OTCBB NEITHER APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.
SOURCE Mainland Resources, Inc.
Copyright 2008 PR Newswire
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August 5, 2008 9:15 AM ET advertisement
HOUSTON, Aug. 5 /PRNewswire-FirstCall/ -- Mainland Resources, Inc., a Nevada corporation (the "Company") (OTC Bulletin Board: MNLU; 5MN-Frankfurt) and Petrohawk Energy Corporation ("Petrohawk") HK have signed a definitive binding agreement for the joint development of the Haynesville Shale on Mainland Resources' properties ("the Leases") in De Soto Parish, Louisiana effective August 4, 2008. This agreement follows the companies' initial Letter Agreement announced July 15, 2008 and closes the transaction.
Mainland Resources, Inc. holds interest in approximately 2,695 net acres which form part of the East Holly Field in De Soto Parish, northwest Louisiana.
Under the terms of the Definitive Agreement, Petrohawk agrees to pay 100% of the costs of development associated with the first well drilled below the Cotton Valley Formation, including drilling, completing and fracture stimulating, as well as costs up to and including pipeline connection. Petrohawk also agrees to pay 80% of all costs of the second well drilled on the Leases below the base of the Cotton Valley and Mainland agrees to pay 20% of the costs. For the third, and all subsequent wells drilled on the Leases below the base of the Cotton Valley Formation, Petrohawk will pay 60% and Mainland will pay 40%.
Mainland will immediately transfer 60% of its De Soto Parish leases to Petrohawk, but only as the Leases relate to all depths below the base of the Cotton Valley Formation, and specifically the Haynesville Shale. Mainland retains rights to all Cotton Valley and Hosston formation production on these Leases. Petrohawk agrees to gather and market Mainland's production from above the base of the Cotton Valley Formation, pursuant to a mutually acceptable agreement.
Mainland Resources President Mike Newport states, "This is a great day for Mainland Resources. With Petrohawk fully on board, we are ready to move ahead with drilling our Haynesville Shale leases immediately."
Petrohawk (or its affiliate) will be designated Operator on all development. The Griffith Well No. 1-H is currently on Petrohawk's rig schedule to spud in September 2008. Mainland Resources management expects to provide news on site preparations, operational developments and drill rig progress within the week.
About Petrohawk Energy Corporation
Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of oil and gas, with properties concentrated in North Louisiana (Haynesville Shale, Elm Grove field and Terryville field), Arkansas (Fayetteville Shale), East Texas, Oklahoma and the Permian basin.
About Mainland Resources, Inc.
Mainland Resources is a junior 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 northeastern gas region that is gaining notoriety for recent discoveries in the Haynesville shale.
Symbol: MNLU - OTCBB, Symbol: 5MN; Frankfurt, WKN No.: A0ND6N
SAFE HARBOR STATEMENT - THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE," "ANTICIPATE," "BELIEVE," "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH PROPERTY DEVELOPMENT AND FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-KSB AND ON FORM 10-QSB AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS AND THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. EACH OF THE NASD, THE SEC AND THE OTCBB NEITHER APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION.
SOURCE Mainland Resources, Inc.
Copyright 2008 PR Newswire
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Permalink Reply by SharonB T18N R15W S8 on
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Mainland Resources - here's an update - pretty much a rehash, but a nice summary.
Mainland Resources listed in the first half of 2008, with a significant asset in what is being hailed as one of the most exciting emerging production plays in decades in North America - the Haynesville Shale in north-west Louisiana.
Monday, November 17, 2008
Mainland Resources - An emerging Haynesville play
by Sam Kiri
When oil prices reached dizzy heights few months ago, every body in the US was keen on developing their own resources and minimise the dependence on imports. Oil has fallen since then of course but the need to develop oil and gas resources within the US has not wavered. It is certainly the case with the president-elect Mr. Barack Obama, and was a part of his election campaign.
Having exhausted most of the conventional sources, it is inevitable that the US will turn its focus to the development of unconventional sources. And there are success stories too in that space. Originally developed by Mitchell Energy, Barnett Shale is one of the largest unconventional natural gas fields in North America. Industry heavy weights such as Devon Energy, Chesapeake Energy and EOG resources are active in the Barnett Shale and have remained profitable even at currently low gas prices.
Focus is now shifting to the Haynesville shale and Chesapeake Energy is the mainstay in the area. In March 2008, Chesapeake announced plans to develop its 300,000 acres in the Haynesville shale. Chesapeake has also announced a major gas discovery. According to industry sources and operators, Haynesville wells could potentially produce 3 to 5 bn cubic ft of natural gas per well. The Haynesville Shale is now regarded as one of the largest natural gas field in North America, with an estimated 52 BCF (Billion Cubic Feet) of recoverable gas per section in the Haynesville fairway.
This makes companies such as Mainland Resources (MNLU.OB) interesting stories. MNLU is currently developing a shale gas play on the south side of the East Holly Field, De Soto Parish in Haynesville. Its 2,695 acres under lease currently includes almost six contiguous sections of mineral rights.
Rather than embarking on development efforts on its own, MNLU has entered into a binding agreement with Petrohawk Energy Corp. for the joint development of the Haynesville Shale. Under the terms of the agreement, Petrohawk agreed to pay 100% of the costs associated with the first well drilled below the Cotton Valley formation, including costs for drilling, completion, fracture stimulation and connecting to pipelines. Petrohawk also agreed to pay 80% of the costs associated with a second well drilled on the leases below the base of the Cotton Valley formation, with MNLU covering the remaining 20% of costs. For the third and all subsequent wells, Petrohawk will pay 60% and MNLU will pay 40%.
Other De Soto Parish area operators include El Paso Gas, Devon Energy, Winchester Petroleum, Chesapeake Energy and Encana. All are actively drilling and acquiring new land positions in the area. Petrohawk recently completed a horizontal Cotton Valley well that tested 16.0 Mmcf/d. El Paso has recently a vertical Cotton Valley well that tested 2.3 Mmcf/d. MNLU certainly is not a lone player hunting elephants but is indeed in good company.
MNLU is keen to develop its assets soon and has commenced drilling operations with its JV partner Petrohawk on the first JV well to evaluate potential of the Haynesville Shale gas formation on its Louisiana leases. The Griffith No. 1-H well is the first well to be drilled on MNLU property. Petrohawk will pay 100% of the costs of this first well to earn 60% interest as a part of its agreement with the Company.
The company is now expanding its Haynesville operations through further acquisitions. In September, MNLU signed a Letter Agreement to acquire 5000 net acres in Mississippi where it plans to drill the first test well to evaluate the potential Haynesville Shale gas formation in the region. Under the terms of the Letter Agreement, MNLU will acquire 100% Working Interest and 75% Net Revenue Interest on all gas formations within the 5000 net acres.
So it is all set to go at MNLU. With assets located in a prolific hydrocarbon region in the US and an able partner in Petrohawk, MNLU certainly presents a resounding investment case. As the US government continues to pursue their aim to develop own hydrocarbon resources, Haynesville is expected to assume a more important role in the US energy equation. MNLU is well-placed to exploit these impending opportunities.
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