Mainland Resources, Inc.(fka MNLU)

[geopressure]

Yes MSO&GB will probably let MNLU drill a handful of wells at 1 well per 640-acre section, then down-space to 320-acres per drilling unit, then 160-acres, and the Deep Bossier was decreased all the way down to 80-acre drilling units.

Because MNLU have targeted the Bossier & Knowles Limestone as possible reservoirs. It is also possible that the MSO&GB could create different rules for each zone.

But you are correct, lobbyist will ensure that the MSO&GB will steadily drop the drilling unit size within the field. Companies selling/renting Drill Bits (for instance) see their profits grow on an exponential scale as the MSO&GB drops their the well spacing from 640-acres to 80 or even 20-acres...

A good Huristic is that deeper, higher pressure plays are thought to have larger drainage basins and are rarely dropped below 80-acres per drilling unit...