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Permalink Reply by Skip Peel - Mineral Consultant on August 6, 2009 at 11:19

sesport. This basics of this story will be repeated numerous times in this play. Small E&P's with no pre-knowledge of the Haynesville Shale who were acquiring leasehold for Hosston and CV development lucked into prospective HS locations. They will JV (joint veture) or sell deep rights to capable Shale Operators like HK as they are not capable, technically or financially, of drilling HA horizontals. Videos like this are posted on You Tube to build investor interest. And PR firms publish glowing internet reports to accomplish the same. There are approximately two dozen Mainland Resource-type companies involved in the Play. And it is more than possible to swallow their hype if you're not paying attention. Be cautious. Some may recall that the last time Mainland Resources was discussed on the site, they, or more likely their PR firm, were announcing HS in Mississippi.

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Permalink Reply by Dion Warr, CPL on August 6, 2009 at 11:58

Skip:

Agree. 2000' thick shale.

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Permalink Reply by Skip Peel - Mineral Consultant on August 6, 2009 at 12:12

Maybe enough for 6 laterals off one vertical wellbore? IP's of 100 MMcfd? Dang nabbit, where do I sign up? LOL!

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Permalink Reply by sesport on August 6, 2009 at 12:20

Oh, pish-posh, you boys just have "well envy," ha, ha, ha C'mon, production from HOSS, CV AND Haynesville? How good is that? Not seeing it in my section! :-P

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Permalink Reply by sesport on August 6, 2009 at 12:15

Ahhh, gentlemen. It just piqued my curiosity, fodder for some good old civil debate. But, I would agree with Electro that Mainland has made a good move.

http://finance.yahoo.com/q/is?s=mnlu.ob

They also saw stock split 2:1 in the middle of July.

Another thing I found of relevance ... the cautionary warning, what has been said here on GHS over and over. Those that leased unwisely to Mainland (without Pugh clauses) were "stuck like Chuck."

REMINDER Make sure, IF you intend to lease, that your lease includes Pugh clauses!!!!!!!!!!!!!

And, by the way, IANAL nor a landperson nor a geologist. My profession is not even remotely related to the industry.

thanks guys - :0)

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