Mayan Energy Limited Forest Hill Field Development Update (3769W)
14 November 2017 - 6:00PM
UK Regulatory
TIDMMYN
RNS Number : 3769W
Mayan Energy Limited
14 November 2017
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
14 November 2017
Mayan Energy Ltd ("Mayan" or "the Company")
Forest Hill Field Development Update
Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased
to announce the initiation of its planned workover and well
stimulation programme at the Forest Hill Field ('Forest Hill'),
Wood County, Texas in which the Company owns a 70% working interest
and a 52.5% net revenue interest.
-- 136 barrels of flush production were produced from the
Gilbreath #19 well (the Well') from the Sub Clarksville formation
at a depth of 4510'-14 and 4520'-24' (ft) during the first 24 hours
following stimulation with a sustained average of 43 barrels of oil
per day ("bopd") production during the next 48 hours. As previously
reported (see RNS dated 7 November 2017 for further details) the
Well initially flowed 21 bopd following successful re-entry and
stimulation;
-- The Well continues to maintain high fluid levels, indicating
the potential for further improvement in recovery rates, with the
application of artificial lift and/or further stimulation tools and
technologies, and the expectation is that stabilized production
from the Well will be between 50-60 bopd;
-- Production at Forest Hill is classified as heavy oil, but is
expected to realise a small premium to the price of West Texas
Intermediate crude oil as the asphaltenes present are in demand by
asphalt plants in response to the rapid economic growth taking
place in North Texas;
-- The Company is now moving forward with plans to restore an
additional two Forest Hill wells to production by early December
2017, in line with its strategy to increase overall net production
to Mayan to 300- 500 bopd in the near term.
Eddie Gonzalez, Managing Director, said: "The initial
performance of the Gilbreath well at Forest Hill is excellent.
Together with the Stockdale Oil Field, Morris #1 well, that we
recently brought into production, the Well will make a useful
contribution towards us achieving our 300- 500 bopd near term
production target from our current portfolio of projects in
Oklahoma and Texas. Importantly, we believe that these results bode
well for the other wells we have identified at Forest Hill, and add
support to our plans to restore and stimulate a further three
Forest Hill wells to production before the end of the year. Taken
as a whole, believe that these new developments and the plans that
we have for the first half of next year, will enable us to shortly
reach our goal of transforming Mayan into a cash flow positive oil
and gas company. In light of the successful stimulation of
Gilbreath #19, we are now evaluating the reserve potential at
Forest Hill and I look forward to advising the market in the near
future as to the size of this valuable resource, which we are
confident will confirm the significant asset backing that is now
behind Mayan."
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.com or contact the
following:
+ 1 469 394
Eddie Gonzalez Mayan Energy Ltd 2008
+44 7971 444
Charlie Wood Mayan Energy Ltd 326
Beaumont Cornish +44 20 7628
Roland Cornish Ltd 3396
Beaumont Cornish +44 20 7628
James Biddle Ltd 3396
Cornhill Capital +44 20 7710
Nick Bealer Limited 9612
Notes:
Mayan Energy Limited is an AIM listed (London Stock Exchange)
oil and gas energy Company focussed on the redevelopment and
enhancement of its upstream oil and gas interests in Oklahoma and
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
petroleum engineer 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.
Technical Glossary
Bopd: means barrels of oil per day. There are 42 gallons
(approximately 159 litres) in one barrel of oil, which will contain
approximately 5.8 million British Thermal Units.
EUR: Estimated ultimate recovery is an approximation of the
quantity of oil or gas that is potentially recoverable or has
already been recovered from a reserve or well.
Workover: The process of performing major maintenance or
remedial treatments on an oil or gas well. In many cases, workover
implies the removal and replacement of the production tubing string
after the well has been killed and a workover rig has been placed
on location. This operation saves considerable time and
expense.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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