Wednesday, September 10, 2008

Haynesville Shale in Mississippi? MNLU drilling Mississippi Salt Basin

Is the Haynesville Shale located in Mississippi? One company, Mainland Resources ( MNLU ) is about to find out whether Mississippi holds any nautral gas in the Mississippi Interior Salt Basin.

MNLU has signed a Letter Agreement to acquire 5000 net acres in Mississippi where the Company plans to drill the first test well to evaluate the potential Haynesville Shale gas formation in the region.

Under the terms of the Letter Agreement, Mainland Resources, Inc. will acquire 100% Working Interest and 75% Net Revenue Interest on all gas formations within the 5000 net acres ("the leases"), which are located in southwestern Mississippi within the Mississippi Interior Salt Basin.

A number of USGS and US Department of Energy resource assessments have been commissioned over this area over the last decade. All report the deep gas potential of the area, pointing to the Upper Jurassic as a favorable exploration target. According to public records, no wells have been drilled to test the Haynesville Shale formation in the target region to date.
Company President Mike Newport states, "We have data that suggests the potential Haynesville Shale in this region could be similar in nature to the gas bearing Haynesville Shale in northwest Louisiana. Our geological team believes that this could be just as productive as the groundwork that's been laid in the Louisiana play."

"No one knew just how good the deep shale in northwest Louisiana was until an exploration company stepped up and drilled the Haynesville, Hosston and Cotton Valley formations. That's what we're setting up to do in this potential new Haynesville shale play in Mississippi," adds Newport.

The Letter Agreement for the acquisition of the Leases is set for closing on or before October 15, 2008 and is subject to standard due diligence review by Mainland Resources, Inc.