TIDMMYN
RNS Number : 2216E
Mayan Energy Limited
07 February 2018
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
7 February 2018
Mayan Energy Ltd ('Mayan' or 'the Company')
Update on Heavy Oil Sands Project, Utah
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company,
is pleased to provide an update on the Asphalt Ridge Project
('Asphalt Ridge'), a heavy oil sands deposit in Utah, USA, which
has an 87 Million Stock Tank Barrels ("STB") contingent resource in
place. Asphalt Ridge is being developed by TSX listed Petroteq
Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF). Mayan has a 17.6%
interest in Deloro Energy LLC ('Deloro') which recently completed
the first tranche of its US$10million acquisition for a 49%
interest in Asphalt Ridge - see RNS dated 15 January 2018.
As part of a phased development plan at Asphalt Ridge to produce
5,000+ bopd by 2019 with an initial 1,000 bopd targeted for Q1
2018, a heavy oil extraction and processing facility is currently
being assembled at the site. Petroteq has notified the Company that
many aspects of the assembly are progressing ahead of schedule. To
date the following work has been completed at the site:
-- Reassembly of the metal support structure for the extraction equipment
-- Installation of extraction equipment including augurs, the
first mix tank and the motor control centre
o The second mix tank is scheduled to be installed this
week.
-- The first two oil storage tanks have been installed for what
will be a facility of 4,000 to 5,000 barrels of capacity
-- The oil heater is currently being assembled for installation
Pictures showing progress made at Asphalt Ridge are available to
view in the Deloro section of the Company's website
(www.mayanenergy.co.uk). The images selected showcase the
completion of the reassembly of the metal support structure for the
extraction equipment and the installation of oil storage tanks.
Mayan CEO Eddie Gonzalez commented, "This update and our recent
visit to the site confirm the construction phase of the Asphalt
Ridge Project is progressing in a timely manner and that the 1,000
bopd plant remains on course to be commissioned in Q1 2018. With
netbacks, specifically oil sales net of royalties, production and
transportation expenses, estimated at US$35+ per barrel at current
oil prices, Asphalt Ridge and the interest Mayan has via its Deloro
investment continues to build in value. Together with the progress
we are making in increasing our net production in Texas to
300-500bopd, we remain positive on the Company's future prospects,
and we intend to use this as a platform with which to continue to
grow the Company and in the process generate value for our
shareholders."
**ENDS**
For further information visit www.Mayan energy.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
Beaufort Securities +44 20 7382
Elliot Hance Ltd 8300
Cornhill Capital +44 20 7710
Nick Bealer Limited 9612
St Brides Partners +44 20 7236
Frank Buhagiar Limited 1177
St Brides Partners +44 20 7236
Gaby Jenner Limited 1177
Notes:
Mayan Energy Limited is an AIM listed (London Stock Exchange)
North American based energy Company. The Company is actively
pursuing a primary recovery oil strategy focused on re-stimulating
wells within mature producing basins with immediate cash flow
leveraging commercially available technologies and projects that
are shallow, low risk with low levels of capex and infrastructure
already in place. It also remains interested in creating
shareholder value by strategic investments in similar projects with
high cash generative potential and by forming beneficial
development partnerships that enable the use of pioneering and
leading extraction technologies. The Company is currently primarily
focussed on building out production at its Stockdale and Forest
Hill oil fields in Texas.
About Petroteq Energy:
Petroteq Energy Inc. is a Canadian-registered holding company,
publicly trading on the TSX Venture Exchange (Symbol: PQE) and the
OTCQX trading platform (Symbol: PQEFF). Its offices are located in
Toronto, Ontario, Canada, Los Angeles, California and its initial
oil sands processing plant is in Vernal, Utah.
Petroteq is engaged in the development and implementation of its
proprietary environmentally friendly heavy oil processing and
extraction technologies. The proprietary process produces zero
greenhouse gas, zero waste and requires no high temperatures. The
Company is currently focused on developing its oil sands resources
and expanding production capacity at its Facility at Asphalt Ridge,
Utah. The Company also (i) owns a minority stake in an exploration
and production play located in southwest Texas held by Accord GR
Energy Inc., (ii) has a joint venture with Recruiter.com and
Oilprice.com that provides internet based job placement and career
services to the increasingly skilled and specialized energy sector,
and (iii) is developing through PetroBloq an advanced blockchain
solution for the energy industry, with a goal of optimizing
petrochemical industry workflow processes.
About Deloro
Deloro private LLC which has entered into a joint venture
arrangement with Petroteq under which Deloro will invest in a
project that:
-- holds the right to explore, mine, extract, product and sell
or dispose of oil sands, bitumen, asphalt and other hydrocarbon
substances and minerals in and within certain lands and properties
situated in Uintah County, State of Utah, in the United States
("the Asphalt Ridge project") that comprises: plant &
equipment; 87 MMSTB's of contingent reserves; and intellectual
property relating to the processing and extraction technology and
land title; and
-- subject to the investment of an aggregate amount in stages of
US$10m by Deloro, it will earn up to a 49% interest in the Asphalt
Ridge project in the form of convertible loan notes, payable as
follows:
o Tranche 1 of US$2.5million has now been completed and is the
subject of this RNS; Deloro is entitled to receive an economic
royalty from TMC Capital and PQE Oil in the amount of 25%,
o Tranche 2 of US$3.5million due once plant for more than 30
days is operating at greater than 1,000 bopd, accordingly Deloro
will receive a further economic royalty from TMC Capital and PQE
Oil in the amount of 10%; and
o Tranche 3 of US$3.95million due on or before by 1 June
2018.
Petroteq and Deloro will enter into a Joint Operating Agreement
in due course and Petroteq will retain operatorship of the Asphalt
Ridge project.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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