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JENNA, MY CRYSTAL BALL SEES 0.000X
Before R/S. You are right on as usual.
Highest Regards
EMAIL TO MNLU 01/12/11
Wed, January 12, 2011 12:28:18 PM An update PR
From: Drs. Wiley <drswiley@sbcglobal.net> View Contact
To: info@mainlandresources.com
--------------------------------------------------------------------------------
MNLU has performed an excellent job of keeping the public informed throughout the duration of the Missippi project. However, the frustration from awaiting the next PR is leading to a feeding frenzy of speculative messages from board members on IHUB.
Please get out at least one PR a week even if is to report still awaiting specific events to occur.
A forth coming PR will be more than an adequate reply.
High Regards,
William R. Wiley, Ph.D.
From way down south of The Woodlands in Tomball.
FINANCIAL ARRANGEMENTS PER 10K OF NOV. 30, 2010
"We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) oil and gas operating properties; (ii) possible drilling initiatives on current properties and future properties; and (iii) future property acquisitions. We may finance these expenses, and any continuing long-term operating expenses, through the methods noted above, namely, private placements of equity and/or debt instruments, entering into joint venture transactions with third parties, mezzanine financing and cash flows from any successful wells."
I leave the interpretation of this statement up to you, but it is not clear to me that MNLU has a $40,000,000 line of credit
HAYNESVILLE SHALE SECTION PER PR OF 01/04/11
"The Company believes that the Haynesville Shale may extend beyond a 2,000 foot vertical section based on technical information gathered to date."
This is the only thing specific that I have encountered to date. So your guess is probably better than mine and as good as any.
PER 10Q FOR QUARTER ENDING NOV.30,2010
"As of November 30, 2010, we had total current assets of $829,069 and total current liabilities of $1,524,001 resulting in a working capital deficit of $694,932. At November 30, 2010, our current assets were comprised of $702,777 in cash, $60,000 in promissory note receivable and $66,292 in prepaid expenses. At November 30, 2010, current liabilities were comprised of accounts payable and accrued liabilities of $1,401,077, and drilling advances of $122,924"
"Our Company has entered into a joint area development agreement with American Exploration to jointly develop contiguous acreage comprising the Buena Vista Prospect. As operator on the Buena Vista Prospect, we recently issued an Authority for Expenditure (AFE) for the Burkley-Phillips No. 1 Well to be drilled on the Prospect. We intend to drill the well to a depth sufficient to evaluate the Haynesville Shale formation, currently expected to total 22,000 feet. The AFE estimates the drilling cost to be approximately $8,650,000 and completion cost to be approximately $4,900,000 for a total completed well cost of approximately $13,550,000. Drilling commenced on July 21, 2010."
It appears to me that the estimated completion cost of $4,900,000 may have to be financed based on the 10Q information and therefore result in undue delay in final completion until financing can be arranged.
WORKOVER RIG AVAILABILITY
"by jeff boler 1 hour ago
Thanks, I had been wondering about that ... Hiwannee is a nice little little pocket of Norphlet sand dunes straddling the Clarke and Wayne County Line... I thought there was a gap in Norphlet production from south Alabama clear to the Jackson, MS area... Good Information, Skip, Thanks...
I wonder who MNLU is using for their completions/workover rig??? most of these rigs are only rated to pull approximately 18,000 ft (or less) of 2 3/8" tubing, so they might have difficulty finding a rig for the completion... or they might already have one on location... Anybody know??? You'ld think they would send out a press release giving us the details and time frame"
POTENTIAL OF 8 TO 10 TCF OF RESERVES FROM MISSIPPI BLOCK
Is information worth waiting for as frustrating as the wait may be. I am certain that time consuming extreme care is exercised to estimate the reserves on an 18,000 acre block from interpretation of available geophysical and geological records due to the significant impact of even minute variables.
MNLU has done an excellent job of keeping us informed at each step of progress in drilling the 22,000' well.
The next press release will have a significant long term impact on MNLU and us long shareholders.
MY GUESS WOULD BE A WAG BUT
see swanky's post #1148 of 01/04. i was surprised that they moved the big rig off and probably need to bring in a work over rig. That coupled with awaiting final lab results for completion may extend the time considerably.
CHILIAR4567 I SECOND THAT MOTION
Indeed the cooperation and harmony among board members here is outstanding. I feel certain that all MNLU & AEXP longs can look to a prosperous 2011.
Regards to all;
SWANKY PLEASE FOLLOW FRANKFURT EXCHANGE FOR US
This exchange is located at:
http://www.boerse-frankfurt.de/EN/index.aspx?PageID=1
They do list Midland Resources, Inc. but I am not familiar with currencies reported.
Why don't you register for free and keep us up to date on volumes traded there.
Have appreciated your previous posts and am convinced that we have a real BONANZA in MNLU & AEXP.
I EXPECT MNLU & AEXP TO BE A BONANZA
Do you agree or wish to wait for detailed PR to express your opinion. Either way, I look forward to your evaluation of this project.
RIG HAS MOVED OFF NOW WE WAIT OR COMPLETION PR
"by Skip Peel- Independent Landman 5 minutes ago
You're welcome. Rapad Drilling #34 moved to the Tellus Operating Hiwannee 16-12 #1 in Wayne Cty., 16-10N-7W."
IN MY OPINION MNLU STOCK WILL BE A BONANZA
In response to your specific questions, a Mr. Bruce Bardeau has prepared an economic analysis of MNLU operations. You may wish to request a copy. He may be reached at:
Bruce Badeau <bruce@fser.net>
That analysis was based on a Haynesville formation interval of 1,000 feet which could be understated by %100 based on PR released by MNLU.
The majority of my purchases in this play have been with AEXP due to their discount of their share prices to MNLU. I think you were wise.
Off the cuff and only in my opinion, I feel that the price per share of MNLU could rise to at least from $5.00 to #10.00 a share with release of their detailed PR on completion details. Of course I may be living in a fantasy world.
Regards, Dr. W
FICOSE, THAT IS SAGE ADVICE
You have given to all CGFI board members and I appeciate it. The future of CGFI is in the hands of Mr. Rice and Mr. Guyer and they deserve our whole hearted support to achieve our common goal.
TIME IS THE ESSENCE FOR CGFIA TO FIND SOLUTIONS
To their multitude of problems and I am not sure we can open channles of communication for suggestions with Messrs Rice and Guyer.
Another solution for disposal of the tailings is their sale to a modern efficient mill for recovery of minerals remaining after processing in the old mill. In the past, and I cannot give you a reference, it has been reported that tailings have been disposed of in this manner.
You might add that to your list of areas to research as an attractive alternative for CGFI.
I have been long on shares and will continue to be so. However, if you will read my post #10857 ANALYSIS OF MILL PURCHASE ORDERS ON SHARE PRICE, you will see that Mr. Guyers profit estimate of $4.8 million from existing purchase orders will not go far in meeting our mounting comitments until we can commence producing from CGFI's own gold mines. Again prmits would be required to open the mines which could be a time consuming process.
Your approach is appreciated and I hope that I have not been too long winded in my response.
CAN WE BE SURE THE BOND IS PAID
Please see the FORM 10-K of August 31, 2010
http://www.sec.gov/Archives/edgar/data/1344394/000095012310107458/c08801e10vk.htm
In March 2008, the Colorado Division of Reclamation, Mining and Safety transferred the mill permit into our name, and in connection therewith, we posted a bond in the amount of $318,154 with the Division in the form of a letter of credit. We have recorded an estimated asset retirement obligation of $612,550 in connection with our estimated future reclamation costs.
By letter of October 8, 2009, the Division also notified the Company of its inspection of the Pride of the West Mill performed on September 16, 2009. The inspection report included an increase in the reclamation cost to $514,630 from $318,154; an increase of $196,476.
On November 6, 2009 we reached an agreement with the Division in the form of a Joint Stipulation which was presented to the Mined Land Reclamation Board (“Board”) at the Board’s November 12, 2009 hearing, and approved. The joint stipulation provides (in part), that:
b. within 180 days of filing, all documentation necessary to allow Division approval of the subject amendment, including an acceptable financial warranty in the amount calculated by the Division incorporating all the revised reclamation cost provisions detailed in the amendment
Then there was the December 16, 2010 demand for the additional deposit of a sum for the Reclamation Warranty Bond similiar in amount to the $196,476 specified on October 8, 2009.
The original bond in the amount of $318,154 exceeds the Required Surety reported recently reported from the Colorado Division of Minerals & Geology Report of $281,819 which may not have been updated.
If we have been assured that the additional sum has been paid, I am delighted but if that ssurance has been reported, I have missed it.
THANKS FOR THE REFERENCE
EOM
PLEASE POST COPY OF REFERENCED REPORT
This is one of the most interesting bits of information I have encountered on this board to date, thank you. However, i searched but was unable to find your referenced report. Therefore, it will be appreciated if can copy and post or give specific web page reference.
It would be interesting to compare the reserves in this report with those utilized by Bruce Bedeau in his econmic analysis
PR - PRODUCTION CASING SET
"Mainland Sets Production Casing on Its 22,000 Foot Deep Haynesville Shale Well in Mississippi
HOUSTON, Jan. 4, 2011 /PRNewswire/ -- Mainland Resources, Inc. (the "Company" or "Mainland") (OTCQB: MNLU, Frankfurt: 5MN) (www.mainlandresources.com) reports that it has set production casing at its Burkley-Phillips #1 well in Jefferson County, Mississippi. At a total depth of 22,000 feet, this well qualifies as one of the top-ten deepest US onshore wells drilled in 2010.
This well was drilled to explore the oil and gas potential in a region of Mississippi where the Haynesville Shale was unknown with the single exception of a nearby well that was drilled in 1981 by Chevron through a 2,000 foot
Haynesville Shale interval prior to the application of modern shale gas
identification and production techniques.
The analysis of the electric line logging information and the 21-foot full core Haynesville Shale sample taken at a depth of 20,415 feet, utilizing
Schlumberger's and Core Laboratory's industry leading technologies, are
being used to confirm reservoir characteristics and validate the
Company's observations of the core sample that a natural fracture system
exists within Mainland's Haynesville Shale acreage in Mississippi.
Management expects the information gathered using these state-of-the-art industry techniques will provide a more accurate understanding of the prospectivity of the Haynesville Shale.
Specifically, information related to volumes of gas in place within the
matrix, porosity, permeability, gas quality, mineralogy and total
organic content will be directly analyzed from the full core. The
Company believes that the Haynesville Shale may extend beyond a 2,000
foot vertical section based on technical information gathered to date.
Nick Atencio, Mainland CEO states, "We have now completed the drilling and casing phase of this project and are transitioning into the analysis and testing phases. We are anxious
to see the results of these analyses to further quantify the potential
of the Haynesville Shale, in addition to the other potentially
productive zones we encountered within this wellbore."
http://www.digitaljournal.com/pr/192644"
ANALYSIS OF MILL PURCHASE ORDERS ON SHARE PRICE
This analysis assumes that the Mill become operational within a reasonable time frame among other assumptions stated. Your critical analysis of the assumptions and conclusions will be appreciated.
In a PR dated 06/24/2010 CGFIA announced preliminary purchase orders of $9.1 mil generating $4.8 mil in net profit in the first year of operation.
http://easyir.marketwire.com/easyir/prssrel.do?easyirid=19D74C5776FFBDFD&version=live&prid=634864
According to Form 10-K for the fiscal year ended August 31, 2010 shares outstanding at November 17, 2010 were:
Class A common stock 2,464,163,308
Class B common stock 490,.367,597
For a total of 2,954,530,905 shares that would participate in the profit of the company. Excluding consideration of the additional number of shares issued since 11/17/10.
http://www.sec.gov/Archives/edgar/data/1344394/000095012310107458/c08801e10vk.htm
Each share of profits based on above:
$4,800,000/2,954,530,905=$0.001625 per share.
Since CGFIA is a Junior mining company with no track record, for the purpose of this analysis it is assumed that the Price to Earning Ratio would range from 3 to 5.
Therefore the stock price after the first year of operation that might be expected would range as follows:
At P/E of 3 $0.001625X3=$0.004875 price per share
At P/E of 5 $0.001625X5=$0.008125 price per share
KOPERTONE, ASSUMED YOUR POST WAS TONGUE IN CHEEK
Please let us know if it was a hoax or not.
DUPLICATE EMAIL WITH HEADING REQUESTED BY richard617
In accordance with your request, a copy of the email with heading has been posted as POST#10845. I did erronously enter 01/01/2010 as the subject heading on this repost as I will probably do on my checks for some time to come.
EMAIL TO GUYER 01/01/2010
POSTED SECOND TIME WITH HEADING AT REQUEST OF richard617
Sat, January 1, 2011 10:56:56 AM
PR of plans to be released week ending 12/31/2010?
From: Drs. Wiley <drswiley@sbcglobal.net>View Contact
To: info@cologold.com
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Dear Mr. C. Stephen Guyer:
According to numerous reports on the IHUB web page you were comitted to submit a PR of your plans for accomplishing the successful permitting of the Mill during the week ending December 31, 2010. Such has not been forthcoming. When do you anticipate that such PR will be released to your long suffering shareholders.
Apparently you will not go before the Colorado Division of Reclamation and Safety Board, after the fiasco of December 16, 2010, before February since Colorado Goldfields, Inc. is not included on the their agenda for January.
It appears that you and your associate have a high mountain to climb in order to accomplish your business plan and I wish you nothing but success. However, please be specific in your PR releases as to your plans for accomplishing your business plan. Further discussion of the price of gold trends leads to nothing but frustration of your shareholders witha resulting impact of share prices.
Both you and Mr. Rice certainly are qualified to implement the business plan but please carefully carry your shareholders and investors with you at each step of the way to success.
I feel that this is a valid, good and reasonable request to keep your shareholers informed, so please do so.
William R. Wiley, Ph.D.
drswiley@sbcglobal.net
AGREED BUT DON'T HOLD YOUR BREATH
Crossing you fingers is good but holding your breath may be ingerous to your health as long as it may be held before CGFIA agenda item appears.
JUST TRYING TO BE POLITICALLY CORRECT
Did not want to pull an act like Goyer did on the Board, when I was seeking information.
EMAIL TO MR. GUYER 01/01/2011
Dear Mr. C. Stephen Guyer:
According to numerous reports on the IHUB web page you were comitted to submit a PR of your plans for accomplishing the successful permitting of the Mill during the week ending December 31, 2010. Such has not been forthcoming. When do you anticipate that such PR will be released to your long suffering shareholders.
Apparently you will not go before the Colorado Division of Reclamation and Safety Board, after the fiasco of December 16, 2010, before February since Colorado Goldfields, Inc. is not included on the their agenda for January.
It appears that you and your associate have a high mountain to climb in order to accomplish your business plan and I wish you nothing but success. However, please be specific in your PR releases as to your plans for accomplishing your business plan. Further discussion of the price of gold trends leads to nothing but frustration of your shareholders witha resulting impact of share prices.
Both you and Mr. Rice certainly are qualified to implement the business plan but please carefully carry your shareholders and investors with you at each step of the way to success.
I feel that this is a valid, good and reasonable request to keep your shareholers informaed, so please do so.
William R. Wiley, Ph.D.
drswiley@sbcglobal.net
MNLU PRESS RELEASE 12/31/2010
Press Release Source: Mainland Resources, Inc. On Friday December 31, 2010, 8:00 am EST
HOUSTON, Dec. 31, 2010 /PRNewswire/ -- Mainland Resources, Inc. (the "Company" or "Mainland") (OTCQB: MNLU, Frankfurt: 5MN) (www.mainlandresources.com) reports that drilling on its Burkley-Phillips #1 well in Jefferson County, Mississippi reached projected Total Depth ("TD") of 22,000 feet on Dec. 27, 2010.
The well is now being logged and interpreted by both the Company's geological and geophysical team, and by the Company's technical consultant, Schlumberger.
Nick Atencio, Mainland CEO states, "Reaching the Total Depth is an important milestone for us, since it is the last stage in the drilling process. We have reached this stage well ahead of schedule given the well complexity and the sheer magnitude of drilling below a depth of four miles. Now we can move on to the work at hand – namely determining our path to completion."
Mainland Resources is drilling the Burkley-Phillips well in order to test the Haynesville Shale capacity in this newly developed area of Mississippi. To date, drilling costs for the well are $9.2 million.
The Company will now set casing in preparation for well completion
RIG REPORT 12/30/2010
From: Go Haynesville shale - Missippi Activity
http://www.gohaynesvilleshale.com/forum/topics/mississippi-activity?commentId=2117179%3AComment%3A1720705&xg_source=msg_com_forum
"by Skip Peel- Independent Landman 1 hour ago
Burkley-Phillips #1 report date 12/30/2010, 161 days drilling ahead @ 22,000'.
by Bob Nies 38 minutes ago
Way to go.... they are going to drill through the Haynesville and test the Smackover... I wonder if they cased to 20,000 before drilling further? Very good news IMO. My guess the next PR report should be out tomorrow, Monday at the latest and could answer that question."
Hard to understand above after getting report that they had reached total depth several days ago.
WELL CHARACTERISTICS DISCUSSION
From Haynesville Shale Web page:
"Reply by jeff boler 10 minutes ago
The major Oil & Gas Companies believe that this Play (the Haynesville Shale) extends from North Louisiana to Cuba. It is well documented across both LA, MS & Southern AL. It has been drilled and logged as far south as Mississippi Canyon 392 and Desoto Canyon 353. I have posted petrophysical data proving the Hynesville's Presence @ MC-392. Furthermore, I have never read a log or drilled a foot of Haynesville Shale that didn't yield noteworthy hydrocarbon shows of some sort.
However, the Anticline associated with the Buena Vista Lease is vastly more limited in scope. If Shale Gas is still their focus, then I see little benefit from the anticline other than perhaps providing increased formation thickness and perhaps less depth to the target. I am still holding faith that one of the 75 other shows has productive potential and then the anticline will definitely help our cause. If the Smackover has permeability, we are talking about significant reserves.
Last I heard the Mud Weight was 18.2 lb/gal at a depth around 20,700 ft [MD/TVD]. Assuming that MNLU did stop at exactly 22,000 ft, then the Bottom-Hole-Pressure can be no less than 20820.8 psi (under static conditions). Though I would think that it is safe to say that the Mud Weight was increased between 20,700 & 22,000 ft, and it was certainly increased prior to tripping out of the hole. So, 20820.8 psi is the least possible bottom-hole-pressure at 22,000 ft [TVD].
Any number of things can go wrong with a frac-job, I agree. But this day and age, with as much as core laboratories is charging, they can get pretty darn specific on fracking guidlines. It always helps when 20820.8 psi is pushing the hydrocarbons into the fracs and from the fracs to the well-bore. This formation has too many Carbonates or Limestone to suffer the same fate as the Tuscaloosa Marine Shale - That's my opinion anyway, but there are other hurdles, with regards to fracking, that have yet to be discovered.
I would have thought that this Haynesville would have been much tighter than the Haynesville of North LA, based on depth alone. However the recorded drill gas (or background gas) was unrealistically high (2500 units) while drilling ahead with an ROP of 30-40 ft/hr. The highest drill gas I ever recorded in the Haynesville Shale of North LA was 1700 units, but this was recorded while averaging 170 ft/hr drilling Horizontally on the Red River Bend et al 25-1H. Many factors influence the rate that gas breaks out at the shakers, but if these numbers are taken at face value it indicates that the Shale of the Berkley Phillips could have recieved its initial charge from the Smackover while still you in geological terms. With an increased pore pressure, the Haynesville (at least in this area) would have fought compaction, and ultimately retained more porosity than one would expect for a shale at such a depth. I believe that a geologist studying the well would either throw these drill gas numbers out because there is too much uncertainty, or arrive at this conclusion if he thought the numbers had value."
CONCERNING MERGER MNLU & AEXP
Response to my questions concerning the merger follows:
"In response to your questions - the S4 merger document was filed a month ago and we have received comments back from the SEC - all of which are relatively straight forward. These questions will have been responded to within the next 2 weeks I believe (both by Mainland and American). Once all questions are satisfied and the merger given the green light - so to speak - proxy forms will be issued which I believe will provide shareholders about 30 days to respond. I would hope the proxies are issued by the end of January - but will be controlled by SEC timing of "green light".
A document has been signed by both parties extending the termination date to the 31st of March - before which the merger should have been completed."
It appears that the merger is on track much to my relief.
CONCERNING MERGER MNLU & AEXP
A response to my questions follow:
"In response to your questions - the S4 merger document was filed a month ago and we have received comments back from the SEC - all of which are relatively straight forward. These questions will have been responded to within the next 2 weeks I believe (both by Mainland and American). Once all questions are satisfied and the merger given the green light - so to speak - proxy forms will be issued which I believe will provide shareholders about 30 days to respond. I would hope the proxies are issued by the end of January - but will be controlled by SEC timing of "green light".
A document has been signed by both parties extending the termination date to the 31st of March - before which the merger should have been completed."
It appears that the merger is on track.
REPORT THAT WELL REACHED TOTAL DEPTH TWO DAYS AGO
"Reply by rusell shleby 34 minutes ago
Reached total depth 2 days ago"
See:
http://www.gohaynesvilleshale.com/forum/topics/mississippi-activity?xg_source=msg_com_forum&id=2117179%3ATopic%3A1397504&page=34#comments
CGFIA NOT YET ON CMLRB MEETING AGENDA OF 01/12-13
To keep up check:
http://mining.state.co.us/Agenda/jan11.htm
FOR CHAMPAGMNEBOB INFO AND I LIKE THAT NAME
Skip Peel, the source of our rig data and other valuable information is on the Haynesville Shale Web Page at:
http://www.gohaynesvilleshale.com/forum/topics/mississippi-activity?id=2117179%3ATopic%3A1397504&page=33#comments
If you have not yet visited that page, you may want to do so. I check it frequently to see what the experts say.
INTO SMACKOVER?
I would expect the Haynesville shale to be less than 2,000' thick over the center of this structure. If the formations are fractured as anticipated by MNLU, then hydrocarbons from the Smackover may well have migrated into the Haynesville and the Haynesville would benefit from theft, whether or not it has been penetrated although it may be by 22,000'TD or even the 21,719 reached on 12/23/2010.
I have great expectations for the success of this well and consider it one of my best Christmas presents.
MNLU DRILLING REPORT 12/23/2010
"Reply by Skip Peel- Independent Landman 1 hour ago
December 23, 154 days drilling ahead @ 21,719'."
Only 281' to TD of 22,000'.
From:
http://www.gohaynesvilleshale.com/forum/topics/mississippi-activity?commentId=2117179%3AComment%3A1711035&xg_source=msg_com_forum
GUYER MUST HAVE BEEN PREPARING FOR XMAS SHOPPING
Disposed of 11,548,364 Shares at $0.0019 retained 233,810,951
12/08/2010 D 11,548,364 (1) D $0.0019 233,810,951 D
See Form 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP:
http://www.sec.gov/Archives/edgar/data/1344394/000144518210000011/xslF345X03/primary_doc.xml
CASING PROGRAM MAY LIMIT DEEPER DRILLING
Recall, "As of October 25, 2010, the Burkley-Phillips No.1 well was drilled and cased to a depth of 17,872 feet." Well above their initial planned casing depth.
This possible limitation was pointed out by others previously.
MNLU NEEDS TO KEEP WEB PAGE UPDATED
The latest PR has not yet been entered on their web or Twitter pages.
MNLU EAST HOLLY FIELD RESERVE REPORT
"HOUSTON, Dec. 22, 2010 /PRNewswire via COMTEX/ --
Mainland Resources, Inc. (the "Company" or "Mainland") (OTCQB: MNLU | PowerRating, Frankfurt: 5MN) (www.mainlandresources.com) reports the preliminary results from its Ryder Scott Company Petroleum Consultants analysis of Hosston and Cotton Valley reserves at its East Holly Field in De Soto Parish, Louisiana. Based on SEC guidelines and pricing as of December 2010, Ryder Scott reports Net Possible Undeveloped Reserves of 60 Bcf of gas and 226,000 barrels of condensate. The Company anticipates receiving the formal reserve report in final format within the next two weeks."
For complete report see:
http://www.tradingmarkets.com/news/press-release/mnlu_mnlu_mainland-resources-reports-preliminary-reserves-of-60-bcf-of-gas-and-226-000-barrels-of-condensate-a-1383303.html