Mainland Resources (OTC: MNLU) today provided an update on the Merger Agreement between Mainland and American Exploration (OTC:AEXP). As I write, shares of Mainland Resources are down slightly at $0.81 per share on heavy volume of nearly 1.3 million shares. Also, as I write, shares of American Exploration are down 4.5 percent at $0.18 per share on volume of 118,000 shares.The Merger Agreement contemplates a stock-for-stock merger between Mainland and American Exploration. The companies entered into an amending agreement, which has extended the Termination Date of the Merger Agreement to March 31, 2011. This will allow adequate time to complete all administrative and regulatory matters related to the merger process.
The companies have filed a draft S-4 prospectus pursuant to the merger for review by the SEC and will work to secure SEC acceptance of the S-4 in a timely manner.
Once the S-4 prospectus has been accepted by the SEC, it will be formally filed and respective shareholder meetings will be scheduled to formally vote on the merger.
As part of its working relationship with American Exploration, the Company has engaged Steven Harding to act as a consulting geologist on its Mississippi Buena Vista project.
Steven Harding has occupied a number of senior positions during the past 28 years within EnCana Corporation and its predecessor Alberta Energy, as well as Husky Energy. His experience includes acting as Vice President Northern Canada and Vice President Alaska/MacKenzie Delta at EnCana and Chief Geoscientist at Husky Energy.
It is anticipated that upon acceptance of the Merger Agreement that Steve Harding will serve as a Director of the Company.
Steven Harding states, "I'm pleased to have the opportunity to work on the Buena Vista Project. I have been able to lend some unique insights and add real value to the interpretation of the data. I look forward to helping create greater value for Mainland going forward."
Company CEO Nick Atencio states, "The proposed merger is moving ahead as intended. We are fortunate to be able to enlist Steve Harding as part of the team developing our Mississippi interests. Once merged, the combined assets will place Mainland in an enviable position in this region."
Mainland Resources, Inc. is engaged in the exploration of oil and gas resources. The Company's current initiatives are focused on the acquisition and development of acreage in emerging and early developing oil and gas regions with the potential for material discoveries.
For information see: http://www.mainlandresources.com
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