Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on November 1, 2010 at 16:26

Probably the same sources that told you the comments in this thread were inaccurate. Right? LOL! IMO, if the royalty interest was highly attractive it would never have appeared in an online auction.

Permalink Reply by rusell shleby on November 4, 2010 at 5:22

Mainland is at 18.300, tight sand, very slow drilling.

Permalink Reply by macrobend on November 4, 2010 at 8:02

I am confused too...why do they need the money now? They could have waited until the well is completed and get a better price! Any comment or additional info would be highly appreciated. Thx

Permalink Reply by rusell shleby on November 4, 2010 at 8:10

How do we know for sure they need more money?

Permalink Reply by rusell shleby on November 4, 2010 at 8:22

I just found out, the posting on the resourceplay.com was a bogus post. Hence why the posting was removed. Nothing was forsale

Permalink Reply by macrobend on November 4, 2010 at 8:27

Thx for the clarification. I was surprised to see the posting on resorceplay.com.

Permalink Reply by jeff boler on November 4, 2010 at 14:39

I thought that it was pretty likely that needed money... They have been drilling for a long time and will continue drilling for a long time... I found it curious that the posting wasn't for outright royalties, but rather a 'term' royalty acres [buyer to receive royalties for a set term or set total amount before the royalty ownership reverts back to the seller, or back to MNLU]. Mainland is focused on two main short-term goals: (1) Get this well completed and put online so that wall-street can see the initial production rates that coincide with reservoir pressures above 20,000psi. (2) Despite a $40Million line of credit, MNLU is focused on maintaining their 'debt-free' status regardless the severity of drilling issues and related cost. I would expect that they have extensive coring planned over the course of the next few months, which will involve long trips, slow operations, high temperatures, and significant capital.... They are probably looking for any way they can to get their hands on just a few more million dollars without it being labelled "debt".

In the end, it will all pay off when investors catch wind of their production rates and then upon inspection find that MNLU has no debt... I'm hoping that the price per share will pass $0.39 so that I can break even.

Permalink Reply by BirdDawg, plain ole' idiot on November 4, 2010 at 15:03

Jeff boler,
I think all of the people on GHS appreciate your honest reply. I have to wonder why anyone would would put up a bogus post about Mainland wanting to sell the "term" royalty acres. Sounds to me like it may not be bogus.

Just my opinion, but I would love to see what would happen if Mainland tried to borrow the 40 million bucks against their cedit limit. I bet it would not happen.++

By the way, I hope you and ole Ray Wherewent get your 39 cents a share back, and then some.

Good luck to you and all.

Permalink Reply by rusell shleby on November 5, 2010 at 0:57

Guys, the amount of the royality for sale was under 68,000??? Seriously??? How far would 68,000 get Mainland? 50 Feet?? Lets get realistic!

Permalink Reply by jeff boler on November 5, 2010 at 19:35

I interpreted it as $68,000 per acre... and 62 acres were available; totaling $4,352,000.00 that is what I would consider 'significant' drilling capital provided that your prospect is a land-based play.

To answer your question from the previous post: $68,000.00 would pay for approximately 2-3 days of normal drilling operations, there are to many unknown variables to give you a more precise answer.

Rusell, with regards to the last line of your previous comment: I assure you that when managing my investments and considering newly acquired intelligence and/or rumors related to to those investments I strive to be as 'REALISTIC" as possible. In fact, my instincts (which are deeply rooted in realism) are encouraging me to dismiss your post - past and present - because they are not intuitive, accurate, noteworthy, or well executed.

Permalink Reply by Spring Branch,mineral owner on November 5, 2010 at 23:46

And Jeff, you are being pretty darned intuitive when you infer that it is a foregone conclusion that Mainland is going to make a productive well when you say," when investors catch wind of their production rates..."

Permalink Reply by rusell shleby on November 6, 2010 at 4:15

Hmmmm. Kinda strange..Knowing that I know who had the royalty for sale, and who made the post on resourceplay.com. It was a misunderstanding, he was wanting to sell 68 term acres he had for sale under the Buneau Vista well. resouceplay.com put that Mainland had it for sale instead of the saler. The CEO of Mainland called him immediatly upset and wondering what this was on resourseplay.com. He then called resouceplay.com and informed them of the mistake. The post was removed, and he sold the 68 net term acres at the first of the week. Bob Nies, a poster on this board, knows the acres I am talking about. So good try Jeff, please know the facts before making post in this manor.

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