JEFFERSON COUNTY — Mainland Resources Inc. reports that American Exploration Corporation has failed to fund its 20 percent share of the estimated total well costs of the Burkley-Phillips No. 1 Well on Mainland’s Buena Vista Prospect in Jefferson County.
As a result, American has forfeited its right to a 29 percent working interest in the well and in the prospect in favor of Mainland.
Pursuant to a letter agreement dated Oct. 1, 2009, Mainland and American Exploration agreed to contribute approximately 8,500 net acres and 5,000 net acres, respectively, of contiguous lands for joint development, with Mainland as operator, in the Buena Vista area of Jefferson County.
Mainland and American Exploration are still moving forward with the proposed merger between the two companies that was announced March 23.