Mainland Resources, Inc.(fka MNLU)

[Ecomike]

Quick summary for you! They were beat down on price when they ran out of cash to frack and connect the BP#1 well in Miss., and while the access road was floded out..... But before that, they had 2 studies done, that indicated they are sitting on $1 billion dollars worth of Natural gas on the Miss leases (post merger with AEXP, note they have a pending merger with AEXP), data based on the logging and core tests. But until it is fracked and flow tested, it is unproven reserves (which makes loans hard to get!!!).

Guggenheim is an 8% partner (owner) of the BP#1 well, and paid 20% of the well cost. Flooding this summer delayed well completion, and they used that time to negotiate for funds (JV) to complete the well (It is drilled and cased, 22,000 foot deep, and at 20,000 PSI, 400 F at the bottom! A record well!!! Just needs to be fracked and connected to the local pipeline. The Louisiana assets have a book value of 40 cents per share. They have NO secured debt, but have past due bills, unpaid (they are trying to raise that cash too). The last 10Q was issued a week ago.

We have waited 6 months for the flooding to abate, the access road to be fixed by the county, and the JV or other financing deal to be done, and the price fell from over $1 earlier this year to .08 low this month, while we waited.