Yesterday the share price of Mainland Resources Inc. (OTC:MNLU) broke the last known resistance for the past months on an even higher trading volume. But today the value may be regained as the company issued one more update on its Burkley-Phillips #1 program.

The session yesterday was not in favor of MNLU and its position on the OTC stock market. MNLU lost another 14.89% of its value and closed with a price of $0.40 for a share. It looks like even more investors are willing to sell their shares in the company, as noticed on the increasing volumes and the declining price, and yesterday over 605,000 shares were traded.

Today Mainland Resources issued the regular update through which it aims to keep holding the market up-to-date with the progress on its exploration program. The announcement said that the expected costs for the completion of the drilling program on the Burkley-Phillips #1 well in Jefferson County, Mississippi, part of MNLU Buena Vista Project, are estimated at around $8 million. That costs are to be shared on a 90/10 basis with the company’s joint venture partner.

Despite the constantly coming updates, the company’s future looks still uncertain in many aspects. After the company sold out all of its producing wells last April, it has no sources of revenues currently, no proven reserves, and probably again no other sources of cash than the stock market. Additional dilution should come from the Merger Agreement with American Exploration Corporation, which has been announced last year and has not been executed yet. Lastly MNLU said that the termination date has been set for May 31, 2011.

In connection with the merger, the company has already filed a registration statement for the total number of shares that can be issued upon completion of the merger. Mainland expects to issue 15,068,333 shares to the shareholders of American Exploration, plus option and warrants. Thus, the total amount to be registered is 15,768,333, a substantial number for MNLU currently outstanding 80.97 million.