Align Research initiation of coverage

Mayan Energy - Initiation of Coverage. Speculative buy - price target 1.6p

Rapidly growing oil production from low-cost, distressed assets

Dallas based Mayan Energy listed on AIM in 2013 under the name Northcote Energy. In September 2016, successful US business man Eddie Gonzalez became CEO and introduced a new management team adopting a sensible new strategy.

Initial target to grow oil production to 1,000 bopd in 2018

Mayan is re-focusing on the mature oilfields of Texas and Oklahoma. Developing shallow, low-risk projects with low levels of capex and infrastructure already in place. From this sound base, the company is seeking to grow production to 1,000 bopd within 12 months, adding 1,000 bopd annually thereafter.

The Board & Management team has just invested £330,000, aligning interest with investors

Eddie Gonzalez has started building an impressive team of oil industry heavy hitters. One of them, Dr. David Kahn, who has been behind a number of 10,000+ bopd companies, has invested £250,000. This level of investment speaks volumes for the directors' desire to see Mayan become a successful growth stock.

Using powerful technologies to increase returns

New technologies will be used to improve downhole information and recoveries. These include the nanosurfactant ERA-3, which has been shown to improve recovery as much as 5-fold. This is a proprietary technology developed and owned by Mayan's new Chief Technical Officer, Dr. David Kahn.

DCF analysis reveals potential upside of in excess of 1,300%

Discounting our forecast cash flows (at a conservative rate) following the well workovers & new wells at the company's growing list of projects & also adjusting for a further modest capital raise provides upside towards 1.6p. With the shares currently at 0.28p, and reflecting the risks involved, we initiate coverage of Mayan Energy with a Speculative buy stance.

To download the full note visit http://www.alignresearch.co.uk/cpt-company/mayan-energy/