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 of MNLU:

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.

Quote: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. Insiders would not be doing this if they felt the company was about to go under. They also have not issued any new shares with a pump and dump (like most peny stocks would have), or even issued new shares in about 2 years, NO DILUITION!

Quote: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.

Quote: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.

Question for the MNLU regulars, are the recent attack posts here a sign that MM's are short and need to cover from the recent rally, and may be getting desperate?

Just thinking out load, it may be time to start a 1-2 day buying spree, and make them panic cover their shorts?