Replies to This Discussion

Permalink Reply by Bob Nies on September 10, 2010 at 14:42

Skip, any drilling report on progress at Buena Vista?

Permalink Reply by Skip Peel - Mineral Consultant on September 10, 2010 at 14:48

Bob, it just popped up in my inbox. It's a little disappointing however as it just reads 49 days drilling ahead and gives no depth. That is the first time that no depth has been reported.

Permalink Reply by Bob Nies on September 10, 2010 at 15:14

Hmm, maybe saving the depth for the Rodman & Renshaw meeting on Wednesday...... we'll see.

Permalink Reply by Bob Nies on September 12, 2010 at 13:26

Skip, you and others on this blog might be interested in this report I stumbled upon regarding the potentially productive Tuscaloosa zone penetrated by Burkley-Phillips No.1 well. This old report is in an area surveyed just below Jefferson County and could be extended to the drilling site and indicates that this zone has a very large areal extent.....

Attachments:

• Tuscaloosa Marine Shale.pdf, 7.3 MB

Permalink Reply by Skip Peel - Mineral Consultant on September 12, 2010 at 13:41

Bob, I know a company that drilled a least one Tuscaloosa Marine Shale well in the Florida parishes. The well tested as productive but completion was a problem. The completion designed employed to fracture stimulate the well resulted in extreme near well bore impermeability. I have not heard of any successful completions by other operators.

Permalink Reply by Bob Nies on September 12, 2010 at 14:11

The report has a lot of technical aspects beyond my comprehension, but a good geologist at Mainland might find it useful, especially in regards to the well log interpretations, etc. to compare with any logs run of the currently drilling well.

Permalink Reply by Marc Stepman on September 14, 2010 at 3:36

I bet this has an impact on the project.

Marc Stepman


MAINLAND RESOURCES, INC. AND AMERICAN EXPLORATION CORPORATION
ANNOUNCE EXTENSION OF MERGER AGREEMENT

Houston, TX – September 13, 2010 – Mainland Resources, Inc. (OTCBB: MNLU, Frankfurt:
5MN) (“Mainland’) announced today that it has agreed with American Exploration Corporation
(OTCBB: AEXP, Frankfurt: EQO) (“American Exploration”) to extend the Merger Agreement and
Plan of Merger (the “Merger Agreement”) between the parties. As previously disclosed, the
Merger Agreement contemplates a stock-for-stock merger between Mainland and American
Exploration to be effected under the laws of Nevada, with Mainland as the surviving corporation.
The extension is primarily intended to afford both companies additional time to complete various
administrative and regulatory reporting matters related to the merger process.
The Merger Agreement is subject to termination by either party if certain conditions specified in
the Merger Agreement are not satisfied at or before the “Termination Date,” which was
previously defined to mean September 30, 2010, or such later date as may be mutually agreed
by the parties. Mainland and American Exploration have entered into an amending agreement
dated September 7, 2010 which extends the Termination Date to December 31, 2010.
The merger remains subject to various conditions, including, without limitation, the approval of
the respective stockholders of each of Mainland and American Exploration, and other customary
conditions.
The Merger Agreement also formerly provided that not more than 15,000,000 shares of
Mainland common stock shall be issued in exchange for shares of American Exploration
common stock pursuant to the merger (exclusive of any shares of Mainland common stocks
issued in exchange for shares of American Exploration common stock which are issued upon
exercise prior to closing of any outstanding American Exploration stock options or American
Exploration common stock purchase warrants). The Merger Agreement was amended by letter
agreement dated July 28, 2010, to slightly increase the maximum number of shares of Mainland
common stock issuable pursuant to the merger to 15,068,000. Such increase was necessary to
accommodate an unregistered offering of 200,000 units by American Exploration on April 5,
2010, at a subscription price of US$0.25 per unit, for aggregate gross proceeds of US$50,000.
American Exploration his informed Mainland that the unit offering was effected pursuant to
Regulation S under the Securities Act of 1933, as amended, in order to provide American
Exploration with the funds necessary to pursue the transactions contemplated by the Merger
Agreement and to meet its continuing reporting obligations under the Securities Exchange Act
of 1934, as amended.
The foregoing description of the merger and the Merger Agreement is not complete and is
qualified in its entirety by reference to the Merger Agreement, as amended.
About Mainland Resources, Inc.
Mainland Resources is a company engaged in the exploration 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.

Permalink Reply by Skip Peel - Mineral Consultant on September 14, 2010 at 3:47

I don't follow how this announcement has any bearing on the project, Bob. First, the negotiations between MR and American Exploration are not new and the extension may have some relevance for the merger but not necessarily for the well. I'd feel better if AEXP was not a penny Over The Counter stock rated BB.

Permalink Reply by Bob Nies on September 14, 2010 at 4:30

Skip, I agree with you also... this has been an ongoing issue for some time.... I suspect a lot has to do with the limited financial strength of AEXP and getting all in order for the merger process / paperwork / due diligence efforts to be completed on time.

I'm hopeful that each are working on surrounding acreage in the play to protect the big investment in the current well being drilled.....

Permalink Reply by Skip Peel - Mineral Consultant on September 14, 2010 at 4:56

Bob, one of the consistent red flags has been Mainland's less than professional touting of JV partners who never went through with the deal. AEXP is just the most recent and that deal isn't done yet. You think maybe AEXP is waiting to see some logs and cores before pulling the trigger? Unless MR has been publishing inaccurate public information, they have already secured a respectable lease block. How an underfunded, recently founded company with little or no history or bona fides helps in that regard is beyond my understanding.

Permalink Reply by Bob Nies on September 14, 2010 at 7:08

It's my understanding that AEXP found this prospect, yet had no funding for their working interest when the deal was set to go..... that's when the merger deal seemed to come about.... does MNLU have control of all the pieces of the leasehold or is AEXP buying time to see as much as possible before finalizing the merger agreement? This could be a a problem.

Permalink Reply by Skip Peel - Mineral Consultant on September 14, 2010 at 7:27

It is MR that has been touting this well and the lease block from the beginning. They monetized their Haynesville Shale WI and took the proceeds to fund this venture.

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