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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: ACAN who wrote (175584)	7/1/2008 3:52:47 PM
From: hotlinktuna	Respond to of 208838

Thanks Allan...just added MNLU 4.30 +.10 thin trader oil/gas play with 2,695 acres in a very hot area in NW Louisiana and they begin drilling in July: MAINLAND RESOURCES INC. Financials EDGAR Online Financials(Tue 10:06am)Mainland Resources, Inc. Approves $8.5 Million Expenditure for Haynesville Shale Drill Test in Louisiana PR Newswire(Thu, Jun 19)Mainland Resources, Inc. Stakes Location for Haynesville Shale Drill Test in Louisiana PR Newswire(Tue, Jun 3) Also Beacon has a research report out today on them and here is part of it: New report issued on an oil and gas exploration company with a 100% working interest in four sections of the Haynesville Shale to discover significant, commercially viable quantities of natural gas. Mainland Resources Inc. Rated ‘Speculative Buy,’ Target Price $7.00 by Beacon Equity Research In the report, the analyst writes, “We think Mainland warrants a premium valuation relative to the peer group due to the location of its leases in the heart of what may be the largest, most successful domestic energy play and the robust revenue growth that may result from the extended drill program. We also believe Haynesville Shale wells are relatively low cost and low risk. Mainland anticipates re-couping all of its per well drill costs within the first four months of production.” Investment Highlights Haynesville Shale may be the largest natural gas find in North American history The Haynesville Shale, Cotton Valley and Hosston formations are emerging as major new resource plays for North American drilling operators. Chesapeake Energy, one of the largest operators with 200,000 acres of leases in this area straddling the border between Texas and Louisiana, estimates that the Haynesville Shale contains 7.5 trillion to 20 trillion cubic feet of natural gas. According to initial reviews of the Haynesville Shale by leading research firms (including J.P. Morgan), Haynesville Shale wells have the potential to produce 3 billion to 5 billion cubic feet of natural gas per well. Mainland may be the only junior company positioned to participate in Haynesville Shale discoveries A major land consolidation is underway in the Haynesville Shale that will exclude virtually all other junior companies from participating. To date, about 21 major public companies have acquired leases in the Lower Bossier/Haynesville Shale. While it is difficult to ascertain and verify specifically what operators are paying for leases to private landowners, State of Louisiana lease sale data shows that the lease bonus/acre has escalated rapidly in 2008 from $100-to-$200/acre in January to in excess of $17,000/acre in June, indicating the industry’s keen interest in drilling this new discovery. Only those that already have leases will be able to participate and Mainland is in the enviable position of having secured its leases at pre-discovery prices averaging around $270 per acre. Rapid progress on Mainland’s drilling program Mainland has contracted with OPS Group to be its drilling operator in DeSoto Parish, within Haynesville Shale, and secured funding for the drilling of a test well in the East Holly Field. Drilling operations are scheduled to begin in July. The Company also plans to use Schlumberger’s Haynesville Shale evaluation software to select the intervals to be penetrated and then developed by drilling a 4,000 feet, 7 7/8 inch OD lateral, horizontal leg off of the vertical hole. Horizontal drilling led to the discovery of the Haynesville Shale and is a technology that has dramatically improved the economics of drilling in the United States. I didn't copy their whole report like the disclaimers all, but this describes what mostly interested me about the stock which doesn't trade a lot but also hasn't moved much lately...tuna