Mainland Resources Inc. has expanded the net acreage in its letter agreement announced June 23, 2009, to now acquire 8.500 net acres in Mississippi. This adds an additional 500 acres to the lease area not included in the initial agreement.
Mainland also agrees to advance a payment of $300,000 towards the total purchase price of the acreage on or before Aug. 31, 2009. This serves to extend the option agreement until Oct. 15, 2009. Mainland agrees to advance the entire balance payment to acquire the option on or before Oct. 15, 2009. Upon completion of the transaction, Mainland will own a 100 percent working interest in the acreage and will be the operator.
The project has been identified using reprocessed seismic, as well as log information, from a well drilled in the early 1980s by a major oil company. That proprietary data shows prospective Bossier/Haynesville Shale and Hosston formations. The Bossier/Haynesville Shale was not considered a viable or economic production resource in the early 1980s and was not validated during drilling to a deeper prospective target.
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