15th Apr 2019 12:45
LONDON (Alliance News) - Mayan Energy Ltd on Monday said its Austin field wells in Texas have been bought on production and it has terminated its relationships with Iron Hawk Energy Group and Red Bensh Fork Energy LLC.
Shares in Mayan Energy were down 12% at 0.14 pence in early afternoon trade.
In January, Mayan Energy settled its issues with the prior operator of Zink Ranch in Oklahoma and has engaged Attis Operating Inc, which also operates the Austin field, as new Zink Ranch operator. Consequently, Mayan Energy has decided not to pursue its joint operating agreement arrangement with Iron Hawk.
Mayan Energy and Red Bensh have also mutually agreed to the termination of their memorandum of understanding relating to Iron Hawk, which had included framework for Red Bench to farm into Zink Ranch. Neither party has any further obligations to each other.
At the Austin field, the cumulative mean production over the last 12 days of the rework programme is 66 barrels of oil per day for a total of 343 barrels. A further 10% increase in daily production is expected as the oil to water ratio improves.
The Austin field should stabilise at around 72 barrels per day gross, meeting Mayan Energy's breakeven point of USD65,000 per month.
Mayan Energy Chief Executive Charlie Wood said: "We are pleased to report that we are already delivering close to breakeven production from the Austin field and expect the numbers to improve going forward. Importantly, through this initial field development programme we have established a strong working relationship with our operator, Attis, who has shown a disciplined cost-controlled approach in delivering production resulting in an excellent return on capital deployed.
"We will continue to monitor performance and proactively implement further enhancements. We are applying the same methodical approach at Zink Ranch as we take control of operations and make further assessment of the development opportunities across our acreage. As part of this plan, the company has begun sub surface geological studies at Zink Ranch with a view to further development and establishment of reserves and additional exploration opportunities will be evaluated at the Austin field in the near future."