TIDMMYN
RNS Number : 7404S
Mayan Energy Limited
27 June 2018
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
27 June 2018
Mayan Energy Ltd ('Mayan' or 'the Company')
Update on Investee Company Block Energy
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company,
is pleased to note the following update from AIM listed Block
Energy Plc ('Block Energy') (AIM: BLOE), the exploration and
production company focused on the Republic of Georgia in which
Mayan holds a 3.29% interest.
Full Text of Block Energy's Release
Block Energy Plc, the exploration and production company focused
on the Republic of Georgia, is pleased to announce the acquisition
of an additional 20% interest in the highly prospective 36.5 sq km
West Rustavi licence ('West Rustavi' or 'the Licence') in Georgia,
increasing its working interest ('WI') to 25%.
-- West Rustavi has proven reserves and gross, unrisked
contingent resources ('2C') of 608 BCF gas and 37.9MMBbls of oil
and is located in the proven and prolific Kura Basin in Georgia
-- Multiple gas discoveries have already been made in the Lower
Eocence and Upper Cretaceous within the Licence, which lie on trend
to the same play currently being targeted by Schlumberger on
neighbouring licence, Block XIb
-- The estimated cost of gas development and production at West
Rustavi is c.US$2.00/Mcf which equates to operating netbacks of
c.US$2.6/Mcf (assuming a 75% working interest) - Georgia currently
purchases its gas for c.US$5.5 /Mcf
-- With a netback of c.US$2.6/Mcf and conservative 50% recovery
the Board believes this translates into a c.US$600m project value
to the Company
-- Inspection of existing well heads at West Rustavi to commence
this week, preparing for the gas re-test and side track
programme
-- Drilling/re-entry of initial targets are anticipated for Q4
2018 which, if successful, will transfer a substantial amount of
the Company's contingent oil and gas resources to reserves and
significantly advance the gas development strategy on the
Licence
-- Acquisition of the additional 20% WI has been satisfied for a
cash consideration of US$500,000, and subsequent to US$1million in
new ordinary shares in Block priced at 4p per share, issued at the
Company's Admission to trading on AIM on the 11(th) June 2018. This
forms part of agreement with Georgian Oil & Gas to farm-in to
up to a 75% WI in the Licence
-- West Rustavi's development is being conducted
contemporaneously with the development of the producing Norio (100%
WI) and Satskhenisi licences (90% WI) which provide immediate
production uplift on commencement of field operations in Q3
-- Existing oil production costs approximately US$25 per barrel
and is sold at Brent minus US$10 per barrel - target of 900 barrels
within 24 months
-- Civil and field work at Norio/Satskhenisi including
rehabilitation of facilities and reactivation of wells at
Satskhenisi to commence in mid-July following routine rig
inspections starting next week
Paul Haywood, Director of Block Energy, said: "The value
potential for West Rustavi is outstanding. With multiple
discoveries and a 608 BCF 2C gross unrisked contingent gas resource
and 37.9MMBbls of oil, the Licence is of huge importance to the
Company going forward, in terms of development potential and value
uplift. Increasing our interest in the Licence is a key strategic
objective for Block ahead of embarking on a development programme
in Q3 2018, which will unlock both value and production potential,
as well as upgrade West Rustavi's resources to proven reserves.
Importantly, with estimated operational and development costs of
US$2.00/Mcf per barrel, these huge contingent gas resources
(contingent on an approved field development programme) are highly
profitable and valuable considering the current gas purchase price
in Georgia of c.US$5.5 /Mcf.
"In tandem with this, our fully funded work programme, following
our recent GBP5million raise, which is targeting a ramp-up in oil
production to 900bopd, is also commencing in July. As with the gas
at West Rustavi, oil production on our fields offers excellent
netbacks, with the current cost of production of c.US$25 per barrel
providing net backs of c. US$30-35 per barrel. Even if we operate
at half our 900 bopd initial production target, our annual revenue
potential would be approximately US$6 million, a level equivalent
to a significant proportion of our existing enterprise value. With
this in mind, we are looking forward to a highly active period
across all three licences commencing immediately. I believe we have
the foundation, work programme and news flow to support a
significant rerating of our share price."
Grant of Share Options
(i) Management Incentive Option Plan
As previously disclosed in the Company's Admission Document and
as part of the Company's commitment to cost saving, staff retention
and incentivisation, and to encouraging alignment between all
employees of the Company and its shareholders, the Company has
granted executive directors of the Company (Paul Haywood, Roger
McMechan, Serina Bierer and Niall Tomlinson) an aggregate of
18,098,332 share options, with an exercise price of 4p per share
(reflecting the Company's IPO price on 11(th) June 2018) and with a
1 year vesting period for 33.33% of the options and 2 year vesting
period for 66.66% of the options (as set out below).
(ii) Executive Director and Key Staff Incentive and Retention
Options
In addition to the general employee share option grants
described above and as previously disclosed in the Company's
Admission Document, options over an aggregate 5,640,000 shares have
been granted to key directors Paul Haywood and Roger McMechan who
the board considers are key to the future growth of the Company.
These are at an exercise price of 2.5p per share, and with a
vesting period of 1 year from issue.
1 Details of the person discharging managerial responsibilities/person
closely associated
a) Name Paul Haywood
--------------------------------- ------------------------------------
2 Reason for the notification
-----------------------------------------------------------------------
a) Position/status PDMR
--------------------------------- ------------------------------------
b) Initial notification/amendment Initial notification
--------------------------------- ------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------
a) Name Block Energy plc
--------------------------------- ------------------------------------
b) LEI 213800E2J8QAIJ6KN415
--------------------------------- ------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-----------------------------------------------------------------------
a) Description of the financial
instrument Ordinary Shares of 0.25p each
--------------------------------- ------------------------------------
b) Identification code GB00BF3TBT48
--------------------------------- ------------------------------------
c) Nature of the transactions Grant of options
--------------------------------- ------------------------------------
d) Price(s) and volume(s) (1) Price: 4p; Volume: 7,756,428
shares
---------------------------------
(2) Price: 2.5p; Volume: 4,440,000
shares
--------------------------------- ------------------------------------
e) Aggregated Information As per d) above
------------------------------------
- Aggregated volume
------------------------------------
- Price
--------------------------------- ------------------------------------
f) Date of the transactions 27 June 2018
--------------------------------- ------------------------------------
g) Place of the transactions Off-market
--------------------------------- ------------------------------------
1 Details of the person discharging managerial responsibilities/person
closely associated
a) Name Roger McMechan
--------------------------------- ------------------------------------
2 Reason for the notification
-----------------------------------------------------------------------
a) Position/status PDMR
--------------------------------- ------------------------------------
b) Initial notification/amendment Initial notification
--------------------------------- ------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------
a) Name Block Energy plc
--------------------------------- ------------------------------------
b) LEI 213800E2J8QAIJ6KN415
--------------------------------- ------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-----------------------------------------------------------------------
a) Description of the financial
instrument Ordinary Shares of 0.25p each
--------------------------------- ------------------------------------
b) Identification code GB00BF3TBT48
--------------------------------- ------------------------------------
c) Nature of the transactions Grant of options
--------------------------------- ------------------------------------
d) Price(s) and volume(s) (1) Price: 4p; Volume: 5,170,952
shares
---------------------------------
(2) Price: 2.5p; Volume: 1,200,000
shares
--------------------------------- ------------------------------------
e) Aggregated Information As per d) above
------------------------------------
- Aggregated volume
------------------------------------
- Price
--------------------------------- ------------------------------------
f) Date of the transactions 27 June 2018
--------------------------------- ------------------------------------
g) Place of the transactions Off-market
--------------------------------- ------------------------------------
1 Details of the person discharging managerial responsibilities/person
closely associated
a) Name Serina Bierer
--------------------------------- ------------------------------------
2 Reason for the notification
-----------------------------------------------------------------------
a) Position/status PDMR
--------------------------------- ------------------------------------
b) Initial notification/amendment Initial notification
--------------------------------- ------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------
a) Name Block Energy plc
--------------------------------- ------------------------------------
b) LEI 213800E2J8QAIJ6KN415
--------------------------------- ------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-----------------------------------------------------------------------
a) Description of the financial
instrument Ordinary Shares of 0.25p each
--------------------------------- ------------------------------------
b) Identification code GB00BF3TBT48
--------------------------------- ------------------------------------
c) Nature of the transactions Grant of options
--------------------------------- ------------------------------------
d) Price(s) and volume(s) (1) Price: 4p; Volume: 2,585,476
shares
--------------------------------- ------------------------------------
e) Aggregated Information As per d) above
------------------------------------
- Aggregated volume
------------------------------------
- Price
--------------------------------- ------------------------------------
f) Date of the transactions 27 June 2018
--------------------------------- ------------------------------------
g) Place of the transactions Off-market
--------------------------------- ------------------------------------
1 Details of the person discharging managerial responsibilities/person
closely associated
a) Name Niall Tomlinson
--------------------------------- ------------------------------------
2 Reason for the notification
-----------------------------------------------------------------------
a) Position/status PDMR
--------------------------------- ------------------------------------
b) Initial notification/amendment Initial notification
--------------------------------- ------------------------------------
3 Details of the issuer, emission allowance market participant,
auction platform, auctioneer or auction monitor
-----------------------------------------------------------------------
a) Name Block Energy plc
--------------------------------- ------------------------------------
b) LEI 213800E2J8QAIJ6KN415
--------------------------------- ------------------------------------
4 Details of the transaction(s): section to be repeated for
(i) each type of instrument; (ii) each type of transaction;
(iii) each date; and (iv) each place where transactions
have been conducted
-----------------------------------------------------------------------
a) Description of the financial
instrument Ordinary Shares of 0.25p each
--------------------------------- ------------------------------------
b) Identification code GB00BF3TBT48
--------------------------------- ------------------------------------
c) Nature of the transactions Grant of options
--------------------------------- ------------------------------------
d) Price(s) and volume(s) (1) Price: 4p; Volume: 2,585,476
shares
--------------------------------- ------------------------------------
e) Aggregated Information As per d) above
------------------------------------
- Aggregated volume
------------------------------------
- Price
--------------------------------- ------------------------------------
f) Date of the transactions 27 June 2018
--------------------------------- ------------------------------------
g) Place of the transactions Off-market
--------------------------------- ------------------------------------
Grant of Warrants
The Company announces that pursuant to the issue of convertible
loan notes by the Company on 18(th) December 2017, a further
125,000 warrants have also been issued in lieu of certain fees. The
warrants are exercisable at a price of 4 pence per share and are
exercisable at any time up to 11 December 2019.
**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
Nick Bealer Cornhill Capital Limited +44 20 7710 9612
Frank Buhagiar St Brides Partners Limited +44 20 7236 1177
Gaby Jenner St Brides Partners Limited +44 20 7236 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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