JEFFERSON COUNTY — Mainland Resources Inc. has finalized the authorization for expenditure cost estimate, or AFE, for the completion program for the Burkley-Phillips #1 well drilled in Jefferson County.
The forecasted costs for the completion program are approximately $8 million to be shared on a 90/10 percent basis between Mainland and joint venture partner, Guggenheim Energy Opportunities, LLC. The completion will allow the Houston, Texas-based Mainland to flow test the well and further determine its resource potential.
Mainland is in the process of obtaining and evaluating bids from several industry leading companies to execute the frac stimulation and will select a provider from bids received. Additionally, Mainland is selecting other service providers for the completion program along with ordering longer lead equipment as previously announced.
Mainland expects to commence completion operations during the third quarter of 2011 and anticipates a timeline of approximately three to five weeks.
Mainland and its working interest partners control in excess of 17,800 net acres or 28 sections on the Buena Vista prospect area where the Burkley-Phillips #1 well was drilled to 22,000 feet, cored and logged. Upon successful completion of its proposed merger with American Exploration, Mainland would own 92 percent of the 28 sections in the Buena Vista prospect. As recently announced, core analysis has determined that gas in place in the Buena Vista prospect could be up to 500 billion cubic feet/section based on the cored interval.
Source: Mainland Resources Inc.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info