Mainland reported last week that it had closed the sale of its interest in the Haynesville formation of the East Holly prospect in Louisiana to Exco Operating Company for approximately $28.2m. As a result of this sale, the company expects that it has sufficient funds on hand to drill the Buena Vista and East Holly wells.
The company’s working interest in the Burkley-Phillips well has increased from 45.9% to 72%. Mainland will fund 90% of the well costs to earn its 72% interest in the well. As operator, the company has a scheduled spud date of early June 2010.
Mainland said that its working interest increased to 72% due to non-payment by American Exploration Corporation. The company currently holds interest in excess of 17,000 acres in the Buena Vista Prospect.
Guggenheim will fund 10% of the well costs to Mainland in order to earn an 8% working interest in the Burkley-Phillips well.
Mainland is finalizing the drilling contract for the Buena Vista well with Rapad Drilling & Well Service of Jackson, Mississippi. Rapad will provide the rig to drill the 22,000ft Haynesville shale well on the Buena Vista prospect.
The company holds a 100% working interest in 2,745.65 net acres in the Cotton Valley, Hosston, and upper Bossier formations located on the East Holly prospect in Louisiana and plans to spud the first well as operator by late May or early June, 2010. The four recent wells drilled by the original operator through the Hosston and Cotton Valley zones to the Haynesville formation calculate as productive.
Mainland is finalizing the drilling contract with Brammer Engineering, Shreveport, Louisiana, to act as contract operator. Brammer, a drilling contract operator with experience in North Louisiana, will drill the company’s first well specific to the Cotton Valley, Hosston, and upper Bossier formations on the East Holly prospect.
