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2010 is a huge year for
MNLU as they anticipate to begin
drilling at the Hosston/Cotton Valley lease and intend
to up list to national exchange!
Schlumberger analysis in
the Mississippi play concluded potential resource of
300 Bcf/section using existing well data. If proven
successful, the play has a potential of approximately
2.5 Tcf. The Haynesville Shale in Louisiana has net
risked resource potential of approximately 71.9 Bcfe
while the net risked potential of Hosston/Cotton
Valley acreage is approximately 85.14 Bcfe. Mainland
is also an operator in the joint venture with American
Exploration for a combined 13,000+ acre lease in
Mississippi. The acreage has exceptional reservoir
pressures and production rates are 11 times greater
than wells deeper than 15,000 ft. The well depth in
the Companys play is 19,400-22,000 ft and depicts
immense potential.
MNLU has
an impressive pipeline with immense resource
potential. The graphic below depicts the forecasted
production profile from the Haynesville Shale
(production risked at 70%,) and Hosston/Cotton valley
(risked at 75%). The estimates exclude production from
the Bossier or Mississippi plays. The Mississippi play
has a potential of approximately of 2.5 Tcf.
MNLU has
joint-ventured a successful drilling program on its
DeSoto Parish, LA leases. The Companys senior energy
partner, Petrohawk Energy is committed to a 60/40
split. Petrohawk has paid 100% of cost
of the first well and 80% of all costs
of the second well. For the third and all
subsequent wells drilled on the Leases below the base
of the Cotton Valley Formation, Petrohawk will pay 60%
and the Company will pay 40%. This is a huge benefit
for MNLU and could add significant
revenue to the Company in 2010 without having to take
on new debt or costs!
Why would Petrohawk take
on so much of the drilling costs if they didn't
believe in MNLU's upside potential!
Petrohawk energy is a multi BILLION
dollar company trading on the NYSE under ticker
HK!
Even
though MNLU has already seen a
55% gain
this month I believe we could potentially head higher
in the near future as the momentum continues to build.
Please make sure to use a stop loss and if the stock
drops below where we profiled it then I would not risk
it and look for our next opportunity. We are looking
for a rally to $2 this month!
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