28 October 2016
Mayan Energy Ltd / Index: AIM / Epic:
MYN/ ISIN: VGG6622A1057 / Sector: Oil & Gas
Mayan Energy Ltd (“Mayan” or “the
Company”)
Placing, Corporate Update and
TVR
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company,
is pleased to announce that it has completed a placing of
7,246,376,812 new ordinary shares of no par value each (“the
Ordinary Shares”) in the capital of the Company at a placing price
of 0.01725 pence (the “Placing
Price”) per Ordinary Share (the “Placing Shares”) to raise gross
proceeds of £1,250,000 (the “Placing”).
Investment into Four Re-entry Wells at
Shoats.
- The funds raised will be used to start oil and gas production
from four re-entry wells, including LM 19 and LM 13, as well as RC1
and RC2
- The impact of these four additional wells coming on stream
(based on initial flow rates as previously announced) is expected
to significantly increase oil and gas production to Mayan
- Mayan has 70.00% working interest (“WI”) and 52.78% net revenue
interest (“NRI”) in RC 1, RC2 and LM 13, and a 20.00% WI and 15.08%
NRI in LM 19
- Funds will also be used to meet immediate financing needs and
for general working capital purposes
Update on Shoats Creek Production
- The delivery of the down-hole pump for the LM 20 well-referred
to in the RNS of 14 October is now due this week, and the Company
will report on sustainable flow rates after the first week of
production
- Mayan has a 70.00% WI and 52.78% NRI in LM14, which will be the
first to be brought on line
Commenting on the above, Mayan’s CEO Eddie Gonzalez said:
“With this raise under our belt, we can move rapidly towards
creating a five to six well operation. So, in just three
months since joining Mayan in September
2016, we will have moved from being an a one well
exploration and development play, to a five to six well producer
and, with the costs cuts the Company has introduced, we are poised
to generate sustainable cash flow to cover our operational
needs. As well as increasing our production, an additional
benefit of this investment is that we will also reduce our
operational risks in terms of our overall sensitivity to the
performance of any given well.
“We now have the fire power to really push ahead, and more than
ever, I am focussed on our game plan. The new wells represent
a very achievable milestone, following which we will really be on
the way to exploiting the considerable potential to add value I see
in Shoats, which include additional lease acquisition, as well as
re-entry and new drill opportunities. I am also looking
forward to reporting on progress in achieving our plans to monetise
some of our non-core assets, and then our plans for Mexico.
The many opportunities associated with that country’s energy
reforms, still remains central to our long term vision for
Mayan.”
Placing Details and Total Voting
Rights (“TVR”)
The Placing is conditional on Admission and application will be
made for the Placing Shares, which will rank pari passu with the
existing Ordinary Shares, to be admitted to trading on AIM (the
“Admission”). It is expected that Admission will become
effective and dealings in the Placing Shares will commence on or
around 4 November 2016.
Following the issue of the 7,246,376,812 Placing Shares, the
Company’s issued share capital will consist of 21,144,630,415
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 21,144,630,415.
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.
As part of the Placing, a placing commitment of £750,000 was
received from PrimaryBid, the crowd funding platform for AIM listed
companies. In addition, in connection with the Placing the Company
has agreed to award Cornhill Capital Limited, the Company’s Broker
and Placing Agent (‘Cornhill’) and a further direct subscriber,
warrants over 1,263,285,023 Ordinary Shares valid for two years
from the day of the Placing, which shall give Cornhill and the
direct subscriber the right to acquire 1,263,285,023 Ordinary
Shares of the Company at the Placing Price.
**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 with a vision of building a midstream
service (oil and gas waste management) and downstream operations
business in Mexico ,exploiting the
opportunities arising from the liberalisation of that country’s
energy sector. This vision will complement the Company’s
present operations which are focussed on the redevelopment and
enhancement of its upstream oil and gas interests in Oklahoma and Louisiana.
- The Market Abuse Regulation ("MAR") became effective from
3 July 2016. Market soundings, as
defined in MAR, were taken in respect of the Fundraise with the
result that certain persons became aware of inside information, as
permitted by MAR. That inside information is set out in this
announcement and has been disclosed as soon as possible in
accordance with paragraph 7 of article 17 of MAR. Therefore, those
persons that received inside information in a market sounding are
no longer in possession of inside information relating to the
Company and its securities.
Qualified Person
The technical information that is
contained in this announcement has been reviewed by Mr.
Kevin Green, a Consultant to the
Company and a Petroleum Geologist who is a suitably qualified
person with over 30 years' experience in assessing hydrocarbon
reserves and who has consented to the inclusion of the technical
information.