Kind of light on details so....

http://www.sunherald.com/prnewswire/story/1606632.html

Schlumberger Report Determines 300 Bcf Per Section on American Exploration Corp. Lands in Mississippi
American Exploration Corp.


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CALGARY, Alberta, Sept. 15 /PRNewswire-FirstCall/ -- American Exploration Corp., a Nevada company ("the Company"), (OTC Bulletin Board: AEXP), has received a shale gas analysis completed by Schlumberger, evaluating the total gas in place within the Haynesville Formation (Shale) in the mineral leases held by the Company in Mississippi. From existing well data, the assessment confirms similar reservoir attributes to the Haynesville Shale of northwestern Louisiana and demonstrates estimated gas in place of at least 300Bcf/section. This places more than 2 Tcf of estimated gas on the property.
A single deep well was drilled into the prospect in 1981, at a time when neither the technology for developing nor the understanding of shale gas reservoirs existed. The well penetrated a greatly over-thickened Haynesville shale reservoir that was completely gas charged and tremendously overpressured. The Haynesville Shale on the American Exploration leases is more than eight (8) times the thickness of that found in northwestern Louisiana.
The gas in place assessment by Schlumberger was performed having first conducted mineralogical and geochemical analyses on rock cuttings samples from the 1981 well, which penetrated the Haynesville Formation. These results were then integrated with the petrophysical log data from which the gas volumes were determined.
The Haynesville Formation in NW Louisiana exploded onto the natural gas market over the past 18 months, following announcements from some of the industry's most significant gas players. Chesapeake, EnCana and Petrohawk have released results indicating that the Louisiana shale contains upwards of 250 Tcf. Current wells show Initial Production ranging from 5 Mmcf to 23.5 Mmcf per day.
The Haynesville shale is now widely recognized as the 4th largest gas field in the world.
About American Exploration Corp.
American Exploration Corp. is engaged in the exploration and development of oil and gas prospects with the potential for discovery of new or unconventional hydrocarbon resources in the continental United States.

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Bacon,

I found an article similar to this one a few months ago. What this article doesn't disclose that the previous one did was the depth and the pressure or the so called find. I don't remember the exact specifics but it was considerably outside of what is presently possible.

Don't forget that we may also have more productive zones below the HS, but someone will have to come up with the equipment to be able to handle the temp and the pressures involved.

One of the great things that this site provides is the experts that can quickly explain why an announcement like this is fluff instead of fact.
Good one Jay
I'm all in as soon as I unload my SSEY.
Agree, Good one Jay. This "5000 acres" has been everywhere in the press releases, but you won't find a bit in the ground anytime soon.

Jay, would you care to confirm that the Haynesville in that part of MS is extremely deep to drill. This prospect is going to need some higher prices to support what it will take to get it out of the ground down there.
Schumberger is a respected company, why would they be putting out bogus reports? Is the gas in place as reported correct but getting out of the ground unlikley?
It's not Schlumberger's report. It's American Explorations' report of a Schlumberger analysis. Yes, Schlumberger is a capable and respected company. You might want to look into American Exploration Corp. I get a little suspicious when I see an "energy" company out of Nevada.
Does Schlumerger's analysis confirm the stated amount of gas is in place or are they twisting words? Notice they do not state amount of recoverable gas in place.
Impossible to say since the analysis is not included. I'm sure if asked AE would say that it is proprietary. When "energy" companies are incorporated in Nevada or Delaware, it gets my antennae to twitching. Both states make it easy and inexpensive to incorporate under their laws and provide additional benefits. Many of the companies who have "stretched the truth" in an attempt to tout their leasehold prospective for the Haynesville Shale are incorporated in Nevada. Check out Southern Star and Mainland Resources as examples. Then look at those companies actually "operating" in the Play. I do not recall a single one incorporated in Nevada.
No mention of depth, temperature or length of the interval that was included in the GIP number. Schlumberger traditionally reports Total GIP, not recoverable. I think this is a case of "twisting words" to try to generate a buzz.
Look at their financials, you will see why they are trying to generate some "play" regarding their stock.
But BD, American Exploration is up today. One penny to $1.05/share. Southern Star continues to drop like a shooting star down 2 pennies to $0.15. And Mainland Resources is holding strong at $1/share. LOL! As BirdDawg points out, upon closer examination all these companies have every reason to exaggerate the perspective nature of their leasehold. And to issue reports that stretch not only the truth but the capacity for the public to believe such extreme spin.
Interestingly enough...or not, haha.


Mainland Resources, Inc. and American Exploration Corp. Enter Into Letter Agreement to Jointly Develop Mississippi Acreage

HOUSTON, Sept. 17 /PRNewswire-FirstCall/ -- Mainland Resources, Inc., (OTC Bulletin Board: MNLU; 5MN-Frankfurt) a Nevada Corporation (the "Company") and American Exploration Corp. ("American"), (OTC Bulletin Board: AEXP; EQO-Frankfurt) have entered into a Letter Agreement to jointly develop their contiguous acreage in Mississippi.

Mainland Resources will commit approximately 8500 net acres and American Exploration will commit approximately 5000 net acres to the project. This represents a total of 13,500 net acres to the composite project area.

Mainland Resources will be the Operator of the project area and has committed to pay 80% of the initial well (drilling and completion costs) to earn a 51% working interest in the well and total project area. American has agreed to pay 20% of the initial well (drilling and completion costs) to earn a 49% working interest in the well and total project area. Future costs (ie. drilling, completions etc.) for oil and gas activities of the 13,500 net acre project area will be split on a 51%/49% basis between Mainland and American respectively.

American recently announced it has received a shale gas analysis completed by Schlumberger evaluating the total gas in place within the Haynesville Formation (Shale) on their 5000 net acres held in the project area. From existing well data, the assessment confirms similar reservoir attributes to those of the Haynesville Shale of northwestern Louisiana and demonstrates estimated gas in place of at least 300 Bcf/section. This places more than 2 TCF of estimated gas covering just the 5000 acres of American Exploration lands and does not include the potential gas in place amount for the additional 8500 net acres that Mainland is contributing to the project area.

A single deep well was drilled in the 1980s on this prospect at a time when neither the technology for developing nor the understanding of shale gas reservoirs existed. The well penetrated a greatly over-thickened Haynesville shale reservoir that was completely gas charged and over pressured. The Haynesville shale on the acreage is more than eight (8) times the thickness of that found in northwestern Louisiana.

The gas in place assessment by Schlumberger was performed having first conducted mineralogical and geochemical analyses on rock cuttings samples from the well, which penetrated the Haynesville Formation. These results were then integrated with the petrophysical log data from which the gas volumes were determined.

The 13,500-acre project area has been completely remapped with reprocessed seismic data. The results confirm the acreage is prospective for the Haynesville shale.

Mainland has experienced previous success in the Haynesville shale through its participation in the drilling and completion of two producing wells in DeSoto parish, Louisiana. Mainland expects to complete a third well in DeSoto parish in the fourth quarter of 2009 or the first quarter of 2010.

Company President Mike Newport states, "We are very fortunate and excited to participate in this project area with American Exploration with such a large acreage position. The Haynesville Shale is the top gas play in North America and we feel this is one of the best new shale prospects in the region. This project could add tremendous value to our company."

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 emerging gas regions with the potential for discoveries including the Haynesville shale.

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