TIDMMYN
RNS Number : 6942L
Mayan Energy Limited
21 July 2017
21st July 2017
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
Mayan Energy Ltd ("Mayan" or "the Company")
Operations Update
Mayan (AIM: MYN) is pleased to announce the following
operational developments at its Zink Ranch and Shoats Creek fields
in the United States as well as the addition of a seasoned oil and
gas professional to its advisory team.
Highlights
-- Zinc Ranch and Matthis Assets: The Company has commenced the
process of obtaining the regulatory approvals and engaged vendors
necessary to implement the work program announced in conjunction
with the approximately US$2 million farm out of interest in its
Zink Ranch and Mathis assets (see RNS dated 18 July 2017).
o An environmental impact study required to obtain drilling
permits has been commissioned, and is expected to be completed
within the next three weeks. The Company is of the view that the
study is unlikely to encounter any material issues that might delay
work;
o Vendors and contractors to undertake the workover operations
at Zink Ranch have been engaged with equipment moving in and the
planned workovers to commence during August 2017.
-- Shoats Creek: Re-start of operations of the Lutcher Moore #20
(LM20) well are currently underway:
o The Company has completed the installation of a mono-pump in
the Lutcher LM20 well that will better handle the water and sand
issues which had previously caused a cessation in production;
and,
o Details with respect to flow rate from the well will be
provided in due course as production stabilizes.
-- After further evaluation of the Lutcher Moore #14 well, the
Company has elected to move forward with installation of an
inter-meter on the Lutcher Moore #14 well to produce the well on
gas lift on an intermittent basis as downhole pressure permits.
o Using this method, the Lutcher Moore#14 will be able to
contribute economic volumes of oil and gas at very low operating
cost driven by gas pressure from the formation which, as it exceeds
certain levels, will be permitted to drive liquids to the surface
resulting in oil and gas production.
o As pressure declines, production will cease for a time
allowing pressure to accumulate which in time will drive additional
production.
o The intermeter is a very inexpensive solution that will allow
a high return, positive cash flow to be realized from this
well.
-- Following reactivation of the salt water disposal system to
accommodate production from the LM20 well, the Company intends to
take advantage of excess water disposal capacity at Shoats Creek to
produce the Lutcher Moore #13 (LM13) well from various sands tested
in early 2Q 2017.
o Salt water disposal lines to dispose of water volumes
associated with the LM13 to be installed following addition of the
LM14 to production via inter-meter.
o Completion of disposal lines will allow the well to be placed
on pump. Further stimulation/enhancement of LM13 to be evaluated.
Final results to be announced in due course following stabilization
of production from this well.
-- Dr. David S. Kahn has been recruited to act as oilfield
technology advisor to the Company. Dr Kahn bringing more than 25
years as an executive with major oil and gas companies including
Baker Hughes, Halliburton, and, Texaco. In the last 15 years, he
has been a principal and founder of several successful companies
globally including Ivanhoe Energy, Black Pearl & Tanganikya.
Dr. Kahn brings specialist expertise in reservoir stimulation that
the Company believes will greatly be of benefit in its exploitation
of Zink Ranch and Mathis assets as well as evaluation of future
opportunities in Oklahoma and Texas.
Eddie Gonzalez, CEO, commented: "I am very excited about the
addition of Dr. Kahn to our team. His expertise will immensely aid
our efforts at Zink Ranch where we are moving forward with the work
program contemplated in the transaction announced 18 July 2017. As
I have previously and publicly opined, Zink Ranch is a hidden gem
in the Company's portfolio and the farm out validates my opinion
and previous statements with respect to its value to this Company.
I reassert: Zink Ranch is the type of project a company of the size
of Mayan should undertake.
We continue to see positive operational developments at Shoats
Creek and while I believe the Company should consider a move
decisively towards an exit from this field, due to the capital
intensive nature of Shoats Creek, we will continue to add value, as
and where possible, until an exit strategy has been
implemented.
While we are still addressing certain legacy issues I inherited
upon accepting the position of Chief Executive Officer of Mayan,
the cumulative effect of the personnel, balance sheet and
operational developments the Board has put in place now move the
Company from a defensive posture with respect to value creation
into a period where I expect great strides toward increasing
production, revenues and cash flow to drive share price
appreciation. A new chapter in Mayan's history is now unfolding and
I believe the future looks bright for 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"). Market soundings, as defined in MAR, were taken in respect
of the Subscription, with the result that certain persons became
aware of inside information, as permitted by MAR. That inside
information is set out in this announcement. 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.
**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; whose present operations which are
focussed on the redevelopment and enhancement of its upstream oil
and gas interests in Oklahoma and Louisiana.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDMMGZNMGLGNZZ
(END) Dow Jones Newswires
July 21, 2017 02:00 ET (06:00 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