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MainLand Resources (MNLU) Beacon Equity Research Rated MNLU a Speculative Buy with a target price of $9.10! MNLU is currently at $1.29 Mainland Resources, Inc. is an independent oil and gas exploration, development and production company formed in early 2008. The Company is developing the natural gas potential of leases in the northern Louisiana Haynesville Shale play and intends to immediately explore the potential for further extensions of the Haynesville shale in Mississippi.

Mainland Resources, Inc. and its joint venture partner and operator, Petrohawk Energy drilled four Haynesville wells to date and have successively brought wells on-line with a 100% success rate. The Company sold off its 40% interest in its Louisiana Haynesville production to single company in early 2010 for just over $27 million.

MainLand Resources (MNLU) Key Points

With a solid asset base to draw upon and years of experience in developing shale-gas wells to its credit, Mainland Resources, Inc. has launched two major drilling initiatives for 2010: Mississippi and Louisiana.

Mainland is moving immediately to validate the shale-gas production in the order of the Louisiana Haynesville shale or larger. Drilling is currently slated for the second quarter of 2010.

The Company’s Louisiana efforts are now focused completely on drilling the productive Cotton Valley/Hosston zones (above the Haynesville) where Mainland owns 100% of the production.

Mainland’s management is committed to building value and by reinvesting its rapid revenue growth to further all of its shale gas assets.

MainLand Resources (MNLU) Recent News

HOUSTON, April 28, 2010 /PRNewswire via COMTEX/ -- Mainland Resources, Inc. (the "Company" or "Mainland"), (Frankfurt: 5MN) reports that the Company has increased its working interest in the Buena Vista Prospect and its planned drilling on both the Buena Vista well in Mississippi, and Cotton Valley well in Louisiana are proceeding on schedule.

Mainland reported on April 22, 2010 that it had closed the sale of its interest in the Haynesville formation of the East Holly Prospect in Louisiana to EXCO Operating Company, LP, for approximately $28.2 million. As a result of this sale, management expects that the Company has sufficient funds on hand to drill the Buena Vista and East Holly wells.

The Company's working interest in the Burkley-Phillips No.1 well has increased from 45.9% to 72%. Mainland will fund 90% of the well costs to earn its 72% interest in the well. As Operator, Mainland has a scheduled spud date of early June 2010. Mainland's working interest increased to 72% due to non-payment by American Exploration Corporation as reported in the Company's press release on April 26, 2010. Mainland currently holds interest in excess of 17,000 acres in the Buena Vista Prospect.

Guggenheim Partners, LLC will fund 10% of the well costs to Mainland in order to earn an 8% working interest in the Burkley-Phillips No.1 well.

Mainland is finalizing the drilling contract for the Buena Vista well with RAPAD Drilling & Well Service, Inc., of Jackson, Mississippi. RAPAD is a highly experienced and reputable driller who will provide the rig to drill the 22,000-foot Haynesville Shale well on the Buena Vista Prospect.