21st Feb 2017 12:45
Mayan Energy Limited - Operations updateMayan Energy Limited - Operations update
PR Newswire
London, February 21
21 February 2017
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil & Gas
Mayan Energy Ltd (“Mayan” or “the Company”)
Operations update-Shoats Creek Field (“Shoats Creek”) Oklahoma Energy (“OKE”) and Mayan Drilling Fluids (“Mexico”), Rationalisation/ Monetisation of Non-Core Assets
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to announce an update on its operations at Shoats Creek, OKE, its investment in Mexico and of its non-core assets. This announcement is in line with Mayan’s strategy of seeking to increase production by transforming Shoats Creek into a multi well oil and gas operation, and also enhancing the value of its portfolio of non-core assets pending their further development or disposal:
Shoats Creek
Lutcher Moore (“LM”) 13- Shallow Well: Gulf Coast Western Inc. (‘GCW’), a privately owned, Dallas based exploration and production company –which has 50% Working Interest (“WI”) in four wells: LM 19, 20, 21 and 22- see RNS 15 March 2016 -has now agreed to take a 50% WI interest in the exploration of this new formation on the LM13, the initial detection of which was announced by the Company in its RNS of 12 Jan 2017. This allows Mayan to share the costs of this work 50/50 with GCW. Work on untapping this potentially significant pay formation – the Roke Quad Neutron Log indicated that the pay zone might be as big as the Frio- will be commenced during the week commencing 20 February 2017, with preliminary results expected two weeks later (the week commencing 6 March 2017). LM 20: GCW which has a 50% WI in this well continues to support the rehabilitation of this well, which has suffered from sand ingression problems. The consensus view is that the installation of a Mono well pump will remove the sand which is clogging the well, thereby creating conditions which will enable fluids to flow once again, but which will still retain the integrity of the well. The intention is to start the next stage of the rework the week commending 6 March 2017, with expected results the same week. Further announcements concerning this well will be made as it develops. LM 14: As announced on 12 January 2017, gas production remains blocked on this well. Negotiations have recently been concluded with GCW, who have agreed to take a 50% WI in this well- reducing the Company’s WI stake to 20%. Remedial work on this well will be recommenced once the results of the LM 13 and LM 20 have been validated. LM13, LM14 and LM20 are the current focus of the Company’s operational and resources at Shoats Creek with the other development wells and opportunities currently on hold until progress has been made thereon.Mayan now has a 50.00% WI and 37.7% net revenue interest (“NRI”) in the LM 13 Shallow Well formation. And has a 20.00% WI and 15.08% NRI in LM 20 in respect of oil, and a 70.00% WI and 52.78% NRI in respect of gas, and a 20.00% WI and 15.08% NRI in LM14.
Oklahoma Energy
In Oklahoma, the Company has material interests in the OKE, Horizon, Zinc Ranch and Libby and Tinker properties.
As reported in its RNS of 12 Jan 2017, having made a modest investment in OKE field, production has been restarted and the Company now has 11 wells operating and producing 18 barrels oil per day (“bopd”) up from the 8 bopd previously reported. A further three more wells will be restarted next week, and it is anticipated that this should lift production to 23 barrels. Mayan presently has 100% WI in OKE and NRI of 75%.
Mexico
The recent focus of Mayan has been to generate a sustainable production base out of its US business as a platform for future growth and opportunities. With the current uncertainty over US Mexican relations and the available capital being centred on the US business, all development in Mexico is on hold and under review.
Commenting on the above Eddie Gonzalez said: “The decision of GCW, our partner in Shoats to come in on LM 14 and the LM 13 Shallow well are encouraging as it endorses the view that Shoats is a field worth persevering with. More significantly by coming in as our partner on the LM 13 Shallow well; GCW gives real support to our view that we may have found a significant new pay zone at Shoats, which looks as though it may be part of a formation identified in other fields in the near vicinity. If LM 13 plays out, it will have a major impact on our thoughts as to the development of Shoats.
“I have to acknowledge however, that there has been an element of slippage against our earlier announced plan, which as I have previously explained has largely been for reasons beyond our control, none the less we remain committed to work on our short and medium term targets, and will be reporting our plans for 2017 in the near term”.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
**ENDS**
For further information visit www.Mayan energy.com 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 |
| Elliot Hance | Beaufort Securities Ltd | +44 20 7382 8300 |
| Nick Bealer | Cornhill Capital Limited | +44 20 7710 9612 |
| Elisabeth Cowell | St Brides Partners Limited | +44 20 7236 1177 |
Notes:
Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas energy company; whose present operations which are focussed on the redevelopment and enhancement of its upstream oil and gas interests in Oklahoma and Louisiana.
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