Mainland gives update on drilling activity

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Published: August 18,2010

Tags: energy, oil and gas, petroleum

CENTRAL MISSISSIPPI — Mainland Resources Inc. has issued an update on the progress of drilling operations at its Buena Vista Project in Mississippi:

As of Aug. 11, the company was drilling ahead on schedule on the Burkley-Phillips No.1 well at 11,600 feet. The company reports that the well has penetrated a sand package preliminarily identified as the Lower Tuscaloosa Massive Sand with approximately 50 feet of thickness and exhibiting elevated gas readings. Further technical analysis of this sand package will be conducted, which will include wireline logging.

The forward plan calls for drilling activity to continue to a depth of approximately 12,800 feet where wireline logging will be conducted to analyze the interval drilled to-date and then a string of protective casing will be installed and cemented. At that point, the company will continue the drilling program to the next casing point at approximately 19,000 feet.

The Burkley-Phillips No.1 well is programmed to drill to a total depth of 22,000 feet. Extensive proprietary data from a previous well drilled on the Buena Vista, combined with petrochemical analysis reviewed by Mainland’s land and geological teams provide the basis for drilling the Burkley-Phillips No. 1 well to the deeper Haynesville target formation.

Management will provide updates as milestone events are reached on the well.

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