20th Apr 2018 13:07
LONDON (Alliance News) - Mayan Energy Ltd said Friday that it has completed its plan to acidise and commingle its Morris #1 well in south Texas.
The previously announced plans are part of Mayan's ongoing activities to "significantly enhance production" at its Morris #1 well at Stockdale Field, Wilson County.
It acidised and commingled the upper and lower Anachao formations. It has also completed the previously announced shut in whilst work on the water injection well was completed.
This will allow the group to start continuous commercial production, it said, and reduce operating costs in the future.
Prior to this it was producing at a rate of 24-26 barrels of oil per day from the upper Anacacho. Prior to acidising and commingling, there was a spike in gas pressure in the well, which resulted in the recovery of 92 barrels of crude oil over a period of 6 hours from the upper Anacacho.
The well produced at 16 to 18 barrels of oil a day prior to the decision to lay a water line, and Mayan forecasts production of between 35 to 50 barrels of oil per day from Morris#1.
This forms part of a multi-well "low cost" workover programme occurring across all of Mayan's Texan assets to "increase net production to 300-500bopd in the medium term".
Eddie Gonzalez, Managing Director, said: "The solid performance of the Upper Anacacho prior to acidisation and commingling reaffirms our initial test results from the Morris #1. The acidisation and commingling operations to combine the production potential of the Lower Anacacho with the Upper went smoothly and we are eagerly anticipating results from our swab test and further production as we initiate continuous production with the downhole pump we are installing.
"I expect the Morris #1 to contribute materially to Mayan's daily production and cash flow and with WTI Crude Oil at better than US$68 per barrel the robust base of production we are continuing to build should perform exceptionally for the company over the next few months. I look forward to updating the market shortly on the exciting developments with the Morris #1."
Shares in Mayan Energy were up 0.7% to 0.78 pence each.
Related Shares:
MYN.L