Mainland Resources, Inc.(fka MNLU)

[Ecomike]

You need to read up on the history of this one, for the last 2 years. This is a sort of wild cat exploration firm. Their last one payed off 28 million dollars last year, which was used to pay of all debt. The remaining 15 million was used to buy up leases and drill the new well to about 22,000 feet. A very expensive well to drill, in a location where the NG pressure is about 22,000 PSI at very high temperatures. Chevron drilled there in 1981, but closed the well fearing a blow out, as they did not have the technology for the high heat and pressure back then. MNLU got the 1981 well data from Chevron, bought up a huge area of leases (and AEXP, our pending merger partner) and now own a huge area around the new well. The well logging has already confirmed a $2 billion dollar find, but it seems most investors want to see actual production numbers, or least the well completion under way and funded.

The current focus is on completing the BV well (fracking the vertical well in about 10-12 weeks) and completing the well and proving the reserves with production from that well. Current data shows the well, and local leases to be worth about 2 billion dollars. But right now we are in a holding pattern while the work site is flooded by seasonal Miss river floods.

The reason the stock is once again ultra cheap, is the low cash (and obvious concerns it raises) and the known wait ahead of us during flood season, and jitters about how they will pay for the next apx $8 million dollar completion costs.

I do not expect the merger to be completed for at least 10 weeks or more. Still waiting on SEC red tape before a prospectus can even be mailed.

History, and my recent conversations with MNLU suggest to me that they will complete the well with debt like they did the prior projects. Guggenheim is a 10% cost/8% revenue partner in the BV well!!! They have plenty of cash, and funded MNLU in prior projects with a 40 million dollar line of credit (last 2 years) with out stock dilution. They don't seem to have any problem borrowing cash to finish up the project, at which point we expect they will sell a stake in the leases or sell it all for huge pile of cash in the billions of USDs.