Mainland's Mississippi "haynesville" interest has been discussed quite a bit. In general, Mainland talks a lot but doesn't do much. And they have experienced problems attracting and keeping joint venture partners for development of their MS leasehold. They sold out of their NW. LA. lease rights for a relatively small price, around $20M if memory serves. Here is a link to the Mainland discussion contained in the GHS archive.
Mainland Resources, Inc is a natural resource exploration company engaged in the exploration, acquisition and development of oil and gas properties in North America. The Company is developing the natural gas potential of leases in the northern Louisiana Haynesville Shale play. The Company focuses on exploring oil and gas prospects located in Louisiana and Mississippi. Mainland Resources, Inc. is engaged in the exploration and development of two oil and gas prospects in the southern United States. The Company focuses on exploring and developing certain natural gas leases covering approximately 2,904 net acres in the East Holly Field of De Soto Parish, in the State of Louisiana. Its East Holly Field leases cover a central area in the Haynesville Shale discovery in northwest Louisiana. The Company's Mississippi Prospect is located along the Gulf Coast Salt Basin in a region.
While I share Skip's skepticism (below) of mainland's stock and longterm intentions - I did read that they were going forward with an initial test which is going to be about 10 miles east of Waterproof, LA and not far from Fayette in MS - but close to the river.
Some of the filings at the MS oil and gas board indicate that they are at least trying to go forward on this. We'll see.
Mainland Resources has issued a news update on 06/24/2010 on spudding the Burkley-Phillips #1 well on the Buena Vista Prospect in Mississippi. Twelve miles of road and the drill site has now dried up after lots of rain and flooding in the area. Gravel has been added as needed on the road and final work in in progress at the well pad. Rapad Drilling Co. of Jackson, Miss. is ready to move in rig #34. Spud date is anticipated to be between July 7&July 15,2010.
If Mainland makes a successful completion in the Haynesville Shale in Mississippi, it is ludicrous to think that there will be continuous natural gas production over the entire area between NW Louisiana and Mississippi. That's not the way it is! "Haynesville" is a term that represents a specific geologic age formation (Jurassic) that changes its lithology (type of formation -sand, shale, lime, etc) from area to area. Geologic conditions (depositional environment) dictate whether or not the "Haynesville" is productive. For example, the "Tuscaloosa formation" goes all the way to Tuscaloosa, Alabama, and is certainly not productive over the entire area. Smackover formation goes all the way to Smackover, Arkansas, etc). :)
Good points Two Dogs and Ron. Stop for a moment and imagine that there is viable HS in Miss. If wells are producing millions of cubic feet a day and the literally tens of thousands of wells that could be drilled from Mansfield into Miss. what that would do to the price of nat. gas? It would become as cheap as water, just what the nat gas companies do not want and it could possibly be decades to have the infrastructure in place for cng cars and cng refilling stations and the majority of transportation running on cng. It does make one wonder when you see statements from nat gas CEO's saying there is sufficient gas that it is a "game-changer" but they never go into specifics of how. I strongly suspect the the "conspiracy theorists" on here are right and that we are all sitting over HS but that it is "convienent" for the nat gas companies to not let this out.
Wouldn't the price be self limiting in that companies will just stop drilling and choke back wells if prices drop too much? Earlier this year it got down around $2.50. I also read that there is a LNG terminal being equiped for export and if that is the case then the gas could be sold on the international market. Whatever the case may be this country will have to face the fact that we have an energy source which is cheap and abundant right under our feet.
Come on guys, there have been plenty of wells drilled to the Smackover between NW Louisiana and Mississippi. And every one of them went through the Haynesville. If the HA was producible, why hasn't it been produced?
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More