1.89% to its price and hitting a phenomenal volume of over 1.5 million shares. Now traders are wondering about only one thing – how long will the up move continue?Last week, the price changes of MNLU were mostly negative, however, suddenly the downtrend was broken. Probably the only reasonable explanation on the stock move appears to be the latest news by Mainland Resources, reporting the extension of its oil and gas leases at the Buena Vista Haynesville Shale operating area in Mississippi. According to the announcement, more than 95% of the acreage will be retained into 2012 and 2013 as part of the company’s business plan in order to maximize the shareholder value.
This news obviously attracted investors’ attention and MNLU started the heavy trade, hoping the climb will continue. Though, it’s yet too soon to be certain about that.[BANNER]
Mainland Resources, Inc. is engaged in the exploration of oil and gas resources. Last April, its stock price was more than three times higher, reaching $1.60 per share. However, it has moved down since then. When considering its 10-Q report, the company has generated no revenues by end-November and its accumulated deficit during the exploration stage is higher than $10 million. Despite the fact that Mainland has more assets than liabilities in its balance, the huge deficit points the company’s ability to continue as a going concern.
Management team states additional funding will be required to complete the 2010-2011 operations program and anticipates to receive it. However, in case the additional financing is not available, this “could significantly and materially restrict our business operations”.
