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Mayan Energy Limited (AOGL)

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Thursday 20 September, 2018

Mayan Energy Limited

Operations Update

RNS Number : 3245B
Mayan Energy Limited
20 September 2018
 

 

Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas

20 September 2018

Mayan Energy Ltd ("Mayan" or the "Company")

Operations Update

 

Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, announces an update on its Forest Hill assets in Wood County, Texas where it holds a 75% working interest ('WI') and 52.5% net revenue interest ('NRI') in two oil and gas leases.  

 

Forest Hill forms part of the Company's portfolio which includes a 60% WI with a 45% NRI net in the 105.7 gross acre Stockdale Oil Fields in Wilson County, a 60% WI and 45% NRI in three horizontal and two vertical Austin Chalk wells in Gonzalez County, Texas and a 100% WI and 75% NRI in the 1,520 net acre Zink Ranch lease in Osage County, Oklahoma.  A full update on these and the Company's investments in Deloro Energy, which provides it with exposure to the producing the Asphalt Ridge heavy oil sands project being developed by TSX listed Petroteq Energy Inc. will be published the week commencing 24 September 2018.

 

In accordance with its AIM rule 11 obligations the Company advises that it is currently awaiting approval from the Wood County Magistrate to obtain lease right of way access into the Forest Hill property.  Upon approval, which following counsel the Board anticipates will be forthcoming in the near term, Mayan will be able to immediately resume production on the leases, which have six producing wells and 225 other local wells with 20-acre spacing and good reservoir characteristics.

 

Mayan Executive Chairman Charlie Wood said, "We look forward to providing a full update on the portfolio next week outlining where we are in terms of production and development in both Texas and Oklahoma.  We believe the delay at Forest Hill will be resolved this quarter and with production coming on stream across the portfolio, a strengthening of our operation capabilities with the contracting of the likes of Derrick Oilfield Services, who are on an incentive driven package at Zink Ranch, we believe we can generate strong returns from the current asset base.  Importantly, with cost cutting, operational breakeven is in the region of 80 barrels per day and in tandem with the realisable value of our investment portfolio which stands at c.$1.5m, over and above our existing cash resources, we do not anticipate the need to utilise the market in the near term."

 

Special note concerning the Market Abuse Regulation

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR"). 

 

**ENDS**

 

For further information visit www.mayanenergy.co.uk or contact the following:

Eddie Gonzalez

Mayan Energy Ltd

+  1 469 394 2008

Charlie Wood

Mayan Energy Ltd

+44 7971 444 326

Roland Cornish

Beaumont Cornish Ltd

+44 20 7628 3396

James Biddle

Beaumont Cornish Ltd

+44 20 7628 3396

Nick Bealer

Cornhill Capital Limited

+44 20 7710 9612

Frank Buhagiar

St Brides Partners Limited

+44 20 7236 1177

Gaby Jenner

St Brides Partners Limited

+44 20 7236 1177

 

Notes:

Mayan Energy Limited is an AIM listed (London Stock Exchange) North American based energy Company.  The Company is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow leveraging commercially available technologies and projects that are shallow, low risk with low levels of capex and infrastructure already in place.  It also remains interested in creating shareholder value by strategic investments in similar projects with high cash generative potential and by forming beneficial development partnerships that enable the use of pioneering and leading extraction technologies.  The Company is currently primarily focussed on building out production at its Stockdale and Forest Hill oil fields in Texas.

 

Technical sign off

All of the technical information, including information in relation to reserves and resources that is contained in this announcement has been reviewed by, Mr Stephen Brock. Mr Brock is a production engineer and member of the Society of Petroleum Engineers who is a suitably qualified person with over 20 years' experience in assessing hydrocarbon reserves and has reviewed the release and consents to the inclusion of the technical information.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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