Monday, March 15, 2010

Mainland Sells Out of Haynesville

Mainland Resources, which lucked on to some Haynesville acreage back in 2008 has agreed to sell its Haynesville leases for approximately $27 million to an  unnamed buyer.  The purchase only involves strata 100 feet below the Cotton Valley formation for 2,903 gross acres (1,162.3 net acres at a 40% working interest) in the East Holly Field in DeSoto Parish, LA.  The purchase price amounts to $17,500 per net acre plus about $6.8 million in past drilling and completion costs.  Mainland will retain rights to Cotton Valley and above.  The company will use the proceeds to retire debt and pursue both a Cotton Valley/Hosston program and its Buena Vista project in Mississippi. 

Not bad for a $687,596 investment two years ago. 

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