Mainland Resources, Inc.(fka MNLU)

[Ecomike]

For those that are new here, and may not have all the facts, here are SOME details and history:

But first, in case no one has noticed, the price drop today has been on very weak volume (compared to yesterday), and declining volume, and the selling stopped at .25 (Edit: now .23 low), which ends or nearly ends a B wave down, and could be followed by a monster C wave rally to above 50 cents next. If that happens, it also completes a 5 wave impulse up (wave one ended at 34.5 cents), under Elliot Wave theory, which means it is the beginning of a long term rally higher. Friday gap up support is at .21/share, which would make an Elliot wave 2 retrace of 50% of the wave 1 move up, before the big rally up, wave 3 or C takes us to over 50 cents, and the 50% retrace is a big fib number for 2nd wave retraces!!!

Now for the History:

Here is the latest source:
http://www.sec.gov/Archives/edgar/data/1395205/000118374011000791/f10q.htm

http://www.sec.gov/Archives/edgar/data/1395205/000118374011000186/f8k03142011ex99.htm

Covers the 14 billion BCF of natural gas per section (time 28 sections) PR for the Buena Vista Miss leases.

Book value of unproven reserves is .16/share (probably based on lease costs paid out).

The recent independent analysis of the Louisiana assets places their market value at about 40-45 cents a share (oil, gas, and condensates).

http://www.sec.gov/Archives/edgar/data/1395205/000118374011000025/f8k01062011ex99.htm

The two separate studies of logging data while the well was drilled, and core sample studies, times the post merger acre size, yields a calculation of about $1 billion dollars of natural gas in place at 22,000 feet (400 F, +20,000 psi!!!!) in the Miss leases alone. This does not account for oil above 22,000 feet, or smackover oil believed to be below the current well in the same property in Miss. It also does not include the lease property in Louissiana (the 40 cent a share value I mentioned above).

The company has about $4 million dollars in total debt, that is unsecured!!!! (only exception is a few liens from recent court judgements on recent past due bills).

One of the new directors, Jerry, owns at least 10% of the shares outstanding!!! See the form 4 he filed when he accepted the Directorship about 6 months ago.

On April 22, 2010, the Company closed the sale of its Haynesville Shale assets in East Holly Field, DeSoto Parish, Louisiana. The assets have been sold to EXCO Operating Company, LP, a wholly owned subsidiary of EXCO Resources, for $28,159,604 effective January 1, 2010. The Company has sold its 40% working interest in all rights deeper than the base of the Cotton Valley formation (which has been defined to be 100 feet below the stratigraphic equivalent of the Cotton Valley formation and includes all of the Company's producing wells as described above) in the East Holly Field. The Company continues to own a 100% interest in all rights above this depth and specifically, in the Cotton Valley, Hosston and Upper Bossier sections.

The Company has used the proceeds of the sale to fund the drilling of the initial well (designated as the Burkley-Phillips No. 1 Well) on its Buena Vista prospect in Jefferson County, Mississippi, and to retire its debt to Guggenheim Partners LLC. (Refer to Note 9).

Insiders have loaned the company cash using unsecured loans this year amounting to well over $1 million dollars.

On April 22, 2010, the Company closed the sale of its Haynesville Shale assets in East Holly Field, DeSoto Parish, Louisiana. The assets have been sold to EXCO Operating Company, LP, a wholly owned subsidiary of EXCO Resources, for $28,159,604. The Company used part of the proceeds to retire its debt to Guggenheim and to re-acquire the overriding royalty interests granted to Guggenheim in the DeSoto Acreage.

During fiscal 2011, a shareholder (the "Secured Party") advanced $650,000 to the Company pursuant to a Demand Secured Promissory Note which bears interest at 10% per annum. During the six months ended August 31, 2011, the Secured Party advanced a further $355,000 on the same terms resulting in a total of $1,005,000 owing to this Secured Party.

The 28 million dollar sale last year and prior JV involved Petrohawk which was bought this year for billions of $$$$s by a huge company (I don't have the details handy, IIRC Exxon Mobil bought XTO energy which bought Petrohawk which bought the last batch of MNLU assets? Or do I have that mixed up, LOL been so many billion dollar mergers and buyouts, I forget which was which).