TIDMMYN
RNS Number : 6614Y
Mayan Energy Limited
23 August 2018
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
23 August 2018
Mayan Energy Ltd ("Mayan" or "the Company")
Completion of Acquisition of New Five-Well Package
Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased
to announce that, further to its announcements of 25 June and 26
July 2018, it has now completed the acquisition of a 60% working
interest/ 45% net revenue interest in three horizontal and two
vertical Austin Chalk wells in Gonzalez County, Texas (the
'Acquisition') for a total consideration of US$500,000 (the
"Consideration"). The Acquisition is in line with Mayan's objective
to increase net production to 300 - 500 bopd by securing select
under-exploited US onshore assets at attractive prices and
enhancing production by applying the Company's in-house expertise
and advanced technologies and techniques. Following extensive due
diligence the Company has elected not to proceed with the purchase
of 7 Stockdale Wells, which were also subject of the conditional
Sale and Purchase Agreement. The Company will continue to assess
additional well packages in the region as it builds out its
production base.
The Company will be mobilising equipment to the Gonzalez County
field in the first week of September. The initial work-over program
is expected to take 8 weeks. All permits required to work-over and
produce the wells are in place once the transfer of the wells are
completed.
For details of the Austin Chalk well package please refer to the
Company announcement dated 25 June 2018.
5 Austin Chalk Wells (Working Interest 60%/ Net Revenue Interest
45%)
-- Near term workover and exploitation potential on three Austin
Chalk horizontal wells and two vertical wells using low-cost
techniques proven on Morris #1 well
-- The Company intends to use a coiled tubing rig to clean out;
work-over; and, acidize Austin Chalk zone in each of the horizontal
laterals with estimated potential production of 60-80 barrels per
day per well
-- The Company estimates that the workover and acidization
procedure on each well will require no more than two days rig time
allowing for near term, high impact results to be realized
-- Longer-term potential to re-frac wells targeting zones
identified with the Roke Quad Neutron log tool
-- None of the wells have been re-entered or stimulated in any
way suggesting significant upside potential from low cost
stimulation and production enhancement techniques and
technologies
-- The Company has established a 300 bopd (Gross) target from
the five well package with potential for upside if the Company
achieves the higher end of its expectation range on each well
-- Operating cost per barrel estimated to be US$18-20 per barrel
as water from these wells will be transported via truck for
disposal
Eddie Gonzalez, Managing Director, said: "With the addition of
these 5 new wells plus ongoing work programmes at Forest Hill and
Zink Ranch we are well positioned to drive daily production
forward. Our technical team has demonstrated their capability to
achieve results by exploiting existing well bores using
cutting-edge and proprietary tools and techniques. Thanks to
today's agreement, our team now has many more opportunities to
replicate this success. I expect the Gonzalez County wells to form
the backbone of our production, augmented by important
contributions from Forest Hill and Zink Ranch & Stockdale."
Sale and Purchase Agreement Amendment ('SPA')
On 25 June 2018 Mayan announced a conditional Sale and Purchase
Agreement with Smart Bit LLC ("Smart Bit") to acquire interests in
12 well bores, including seven additional vertical wells at the
Stockdale Field in Wilson County, and three horizontal and two
vertical Austin Chalk wells in Wilson and Gonzalez Counties, Texas
(the "Acquisition") for a total consideration of US$605,000 (the
"Consideration"). As announced at that time, completion is
conditional on the satisfactory completion of full due diligence,
agreed form of assignment of wells, and Mayan and the Vendor
entering into a Joint Operating Agreement ("JOA").
SPA Amendment
On July 26 2018 Mayan entered into a revised Sale & Purchase
Agreement to extend the due diligence and completion period until
22 August 2018. As announced at this time it was to ensure clear
title could be passed across with all necessary permits and
approvals in place to enable immediate work-overs and production to
commence from the target well packages.
Consideration Payable
Given Mayan's decision to not proceed with the purchase of 7
Stockdale Wells, Mayan will pay the balance of the consideration
due under the SPA in respect of the 5 Austin Chalk wells only of
US$460,000, payable 50% in cash and 50% in Mayan shares at 0.7p per
share. The shares issued to Smart Bit are subject to a 6-month
lock-up.
The Company will issue 25,274,725 Ordinary shares as settlement
for 50% of purchase price of US$460,000 (the "Settlement
Shares").
Total Voting Rights ("TVR")
In total 25,274,725 Ordinary shares which will rank pari passu
with existing Ordinary Shares will be issued at the 0.7p per share,
and it is expected that Admission will become effective and
dealings in the Placing and Settlement Shares will commence on or
around 30 August 2018.
Following the issue of 25,274,725 Settlement Shares, the
Company's issued share capital will consist of 1,427,098,141
Ordinary Shares with voting rights. No Ordinary Shares are held in
treasury at the date of this announcement and therefore following
the Admission, the total number of Ordinary Shares in the Company
with voting right will be 1,427,098,141.
The above total voting rights figure may be used by shareholders
as the denominator for the calculation by which they will determine
if they are required to notify their interest in, or a change to
their interest in the Company.
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:
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
Colin Rowbury Novum Securities Limited +44 207399 9400
Frank Buhagiar/Gaby
Jenner St Brides Partners +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.
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
production engineer and member of the Society of Petroleum
Engineers 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.
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
ACQPJMATMBMTMRP
(END) Dow Jones Newswires
August 23, 2018 02:01 ET (06:01 GMT)
Mayan Energy (LSE:MYN)
Historical Stock Chart
From Apr 2024 to May 2024
Mayan Energy (LSE:MYN)
Historical Stock Chart
From May 2023 to May 2024