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Mainland to start drilling well

SOUTHWEST MISSISSIPPI — Mainland Resources Inc. is preparing to drill the Burkley-Phillips No. 1 well to test the Haynesville shale formation on the Buena Vista Prospect in Southwest Mississippi.

Mainland and RAPAD Drilling & Well Service Inc. have entered into a drilling contract where RAPAD will provide the rig necessary to drill the initial well by Mainland on its Buena Vista Project to a depth of 22,000 feet, or a depth sufficient to test the Haynesville shale formation. RAPAD is a veteran driller with multiple deep well experience in this region since 1946.

Extensive proprietary data from a previous well drilled on the Buena Vista, combined with petrochemical analysis reviewed by Mainland Resources’ land and geological teams provide the basis for drilling the Burkley-Phillips No. 1 well to the deeper Haynesville formation. It will be the only well drilled by any company on the Buena Vista area to test the Haynesville shale formation since shale gas has emerged as a major production resource.

The estimated cost to drill and complete the Burkley-Phillips No.1 well to test the Haynesville shale formation is projected to be $13.55 million.

Mainland has also contracted J. Mark Hardee, president of Rig Managers Inc., to manage and oversee the drilling of the well. Hardee has over 21 years of oilfield experience and has directly supervised over 475 drilling projects in the southeastern United States, a majority of them in the Mississippi and Alabama regions. The Rig Managers team drills about 60 wells per year and has been personally involved in one of the deepest wells drilled in Mississippi in recent history to a depth of 24,500 feet.

Mainland has already initiated the site work, pad preparation, road construction, permitting and drill preparations required to spud the Burkley-Phillips No. 1 well between June 1-15.

Mainland currently holds interest in excess of 17,000 acres in the Buena Vista Prospect.


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