Haynesville Shale Update May 18, 2009

Lower natural gas prices have cut back a lot of drilling in the haynesville shale which is located in East Texas and North Louisiana. Below is a look back at last weeks activity in the haynesville shale natural gas field.

Haynesville Shale Report - 5/18/09

Mainland Resources, Inc. and JV Partner Spud Third Haynesville Shale Well on the Company's DeSoto Parish, Louisiana Property

Mainland Resources, Inc., (OTC Bulletin Board: MNLU; 5MN-Frankfurt) a Nevada Corporation (the "Company") reports that its Joint Venture (JV) Partner and Operator has commenced drilling operations on the Company's third JV well to evaluate additional potential of the Haynesville Shale gas formation on Mainland's Louisiana leases.

The Dehan et al 15#1H was spud on May 4, 2009 and is currently drilling at 6850 feet.
The well will be drilled to approximately 12,000 feet or a depth to sufficiently test the Haynesville Shale formation. Mainland will own a 25.42% Working Interest in this unit. The JV Partner and Operator will have a 38.12472% Working Interest in the well.

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Haynesville Shale: Chesapeake Energy CHK 3/2/09

Today, Chesapeake Energy ( CHK) has come out and announced an update on their joint venture with Plains Exploration ( PXP ) regarding the Haynesville Shale.

Chesapeake has elected to curtail approximately 240 million cubic feet of natural gas equivalent (mmcfe) per day of its gross natural gas and oil production due to currently low wellhead prices in the Mid-Continent region. The company has curtailed approximately 200 million cubic feet per day of gross natural gas production and approximately 6,000 barrels per day of gross oil production for at least the month of March 2009. The curtailed production represents approximately 7% of Chesapeake’s current gross operated production capacity. Additionally, the company is considering a further 10% reduction in its drilling activity during 2009 if natural gas and oil prices remain low during the next few months. The company’s attractive hedges and cash availability provide it with the operational and financial flexibility to curtail production during periods of unusually low prices, such as the current market environment. The company believes conditions are developing that will support higher prices for natural gas and oil later this year and in 2010.

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Haynesville Shale: Caddo Parish, Louisiana Goodrich Petroleum GDP Well

Goodrich Petroleum ( GDP ) has announced a completion of a new Haynesville Shale well in Caddo Parish Louisiana. 14.5 MMcf's!

GDP has completed its initial horizontal Haynesville Shale well, the Chesapeake Energy Corporation-operated Holland 17H-1, which tested at a rate of approximately 14.5 MMcf per day on a 24/64 inch choke with 6,000 psi. The well, which was drilled to 16,200 feet, had a horizontal displacement of approximately 4,400 feet (3,800 feet cased), and is located in the Company's Bethany-Longstreet area in Caddo Parish, Louisiana. Goodrich owns a 50% working interest in the well, Chesapeake owns 40% and Plains Exploration & Production Company owns 10%.

ANGELINA RIVER TREND
The Company has completed its Estes 2H (100% WI), a James Lime horizontal well on its Cotton South prospect area, which tested at 7.0 MMcf per day on a 35/64 inch choke with 1,500 psi.

http://phoenix.corporate-ir.net/phoenix.zhtml?c=83169&p=irol-newsArticle&ID=1240683&highlight

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Haynesville Shale: Desoto Parish - Mainland Resources MNLU Spuds first Well 10/20/08

This morning, 10/20/08, Mainland Resources ( MNLU ) is out saying that they have spudded their first Haynesville Shale well in DeSoto Parish Louisiana.

Mainland Resources, Inc reports that its JV Partner
and operator has commenced drilling operations on the first JV well to evaluate potential
of the Haynesville Shale gas formation on Mainland’s Louisiana leases.
Mainland Resources, Inc. holds interest in approximately 2,695 net acres, which form
part of the East Holly Field in De Soto Parish, northwest Louisiana.

The Griffith No. 1-H well is the first well to be drilled on Mainland’s property based on
Company data and proximity to several vertical Haynesville wells waiting on completion,
two horizontal wells being drilled, and another Haynesville well recently permitted. The
JV Partner and operator will pay 100% of the costs of this first well drilled on Mainland’s
leases to earn 60% of the first well as part of its agreement with the Company.

Company President, Mike Newport states, “We are now drilling the first of what we
believe could potentially be many wells on our DeSoto Parish Leases. Management
expects that this new well will provide results showing the gas potential of the
Haynesville shale on our property.”

According to industry sources, the Haynesville Shale is now regarded as the 4th
largest natural gas field in North America, with the leading exploration company in the
play announcing it is projecting 52 BCF (Billion Cubic Feet) of recoverable gas per
section in the Haynesville fairway.

http://www.mainlandresources.com/pdf/MRI-NR-10-20-08.pdf

Full List of Haynesville Shale Companies and Stock Symbols:
http://www.oilshalegas.com/haynesvilleshalestocks.html

Haynesville Shale: QBC Cubic Energy Looking to Sell 10/14/08

With crashing stock markets and energy prices....many companies are looking to get out of the shale plays lately. I had a feeling this was going to happen. It was almost like a bubble when every company and their mother was buying up mineral rights in the Haynesville Shale natural gas field.

Cubic Energy ( QBC ) announces today that due to ever increasing unsolicited interest in the Company's assets in North Louisiana, the Company has engaged RBC Richardson Barr Securities, Inc., an affiliate of Royal Bank of Canada Capital Markets ("RBC") to explore all strategic alternatives on behalf of the Company and its shareholders. The Company's asset position in Caddo and DeSoto Parishes includes the Rodessa, Pettet, Upper and Lower Hosston, Cotton Valley and the Haynesville Shale. In addition, there is significant interest in the Company's gathering and pipeline systems.

As the Company now holds substantially all of its acreage by production, and has completed its own pipelines and infrastructure, the Company is afforded the opportunity to evaluate all its options in order to increase shareholder value.

Haynesville Shale: Penn Virginia ( PVA ) Update 10/02/08

Penn Virginia ( PVA ) came out today and gave operational guidance specifically on the Haynesville Shale.

A. James Dearlove, President and Chief Executive Officer of PVA, commented, "In spite of the reduced guidance levels for 2008, our growth strategy remains intact in all of our significant resource plays. The reduced 2008 guidance is largely the result of a number of unanticipated circumstances, including the effects of two hurricanes which impacted our largest producing region in East Texas. In addition, we are accelerating the transition from an exclusive vertical Cotton Valley development program in East Texas, which was supported by six drilling rigs at the beginning of 2008, to the current combination of four to five rigs drilling horizontal Lower Bossier (Haynesville) Shale wells and two to three rigs drilling vertical Cotton Valley wells. The near-term effect of this transition is a delay of production contributions from the horizontal shale drilling program, which has much longer spud-to-production lead time relative to vertical Cotton Valley wells. Even though this decision has affected near-term production growth, the benefits of expected superior economic returns and accelerated long-term production growth favor this approach, as reflected in our preliminary 2009 guidance.”

http://biz.yahoo.com/bw/081002/20081002006238.html?.v=1

For more on companies drilling in the Haynesville Shale and other shale plays, visit http://oilshalegas.com

Haynesville Shale - Chespeake Energy ( CHK ) Completes Three New Wells Avg 10MCF/D

The Haynesville Shale is still alive and well! I was getting worried it vanished since we haven't heard much news lately. This most likely has to do with the recent collapse of natural gas prices.

Chesapeake ( CHK ) Completes Three New Haynesville Shale Wells in September with Average per Well Initial Production Rates Exceeding 10 MMcfe per Day.

“Finally, I am also pleased to announce that Chesapeake completed three new horizontal Haynesville Shale wells in September with average initial production rates exceeding 10 mmcfe per day on restricted chokes with high flowing casing pressure. We look forward to initial production commencing from our first PXP joint venture Haynesville Shale well in October and will provide a full update on the Haynesville Shale and other important plays at our Investor and Analyst Meeting in Oklahoma City on October 15 and 16, 2008. This meeting will be webcast so that all investors will be able to learn more about our operations and prospects for future growth.”

http://phx.corporate-ir.net/phoenix.zhtml?c=104617&p=irol-newsArticle&ID=1199524

Haynesville Shale - Natural Gas Prices - Boone Pickens 9/03/08

Natural Gas prices have plummeted over the past few months going from $14 to the mid $7's. The question is, is the Haynesville Shale still economical to drill if Natural Gas falls even further?

Yesterday, Boone Pickens came on CNBC and stated he thinks there is a huge amount of supply in natural gas which the demand is not as strong as the supply. Boone Pickens says he thinks Nat Gas could even fall back to $6 in the coming months.

With $6 natural gas, how will small companies like Goodrich Petroleum ( GDP ) and Petrohawk Energy ( HK ) be able to drill the haynesville shale? The answer is simple, these companies could stop drilling the Haynesville Shale and drill the formations above it such as the cotton valley formation. If their stock prices get to low, you could see a Devon Energy, Chesapeake Energy, or XTO Energy swoop and and buy these companies out.

With low natural gas prices, you will see a decline in drilling, but this decline will cause supplies to fall and in the long term will stable the price for natural gas out.

The Haynesville Shale is here to stay!

Haynesville Shale - Forest Oil ( FST ) East Texas, Cotton Valley - 8/18/08

Forest Oil ( FST ) announced today that it has aquired acreage that is prospect to the Haynesville shale in East Texas.

Forest Oil announced today that it has entered into a definitive agreement with Cordillera Texas, L.P. to acquire producing assets including approximately 118,000 gross acres (85,000 net acres) in Forest’s core Greater Buffalo Wallow and East Texas/North Louisiana Focus Areas. Forest attributes estimated proved reserves of 350 Bcfe (36% proved developed) with additional net unrisked potential of 1,200 Bcfe and approximately 1,500 additional vertical and horizontal drilling locations (1,194 unbooked locations) to the properties. The properties produced an average of approximately 34 MMcfe/d in the first half of 2008 and are focused primarily in the Granite Wash, Atoka and Morrow intervals in the Greater Buffalo Wallow Area and in the Cotton Valley and Travis Peak intervals in East Texas. The acquired acreage in East Texas also has James Lime, Haynesville/Bossier Shale and Pettet rights.