Mayan Energy Limited Forest Hill Field Development Update (3769W)

TIDMMYN

RNS Number : 3769W

Mayan Energy Limited

14 November 2017

Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas

14 November 2017

Mayan Energy Ltd ("Mayan" or "the Company")

Forest Hill Field Development Update

Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased to announce the initiation of its planned workover and well stimulation programme at the Forest Hill Field ('Forest Hill'), Wood County, Texas in which the Company owns a 70% working interest and a 52.5% net revenue interest.

-- 136 barrels of flush production were produced from the Gilbreath #19 well (the Well') from the Sub Clarksville formation at a depth of 4510'-14 and 4520'-24' (ft) during the first 24 hours following stimulation with a sustained average of 43 barrels of oil per day ("bopd") production during the next 48 hours. As previously reported (see RNS dated 7 November 2017 for further details) the Well initially flowed 21 bopd following successful re-entry and stimulation;

-- The Well continues to maintain high fluid levels, indicating the potential for further improvement in recovery rates, with the application of artificial lift and/or further stimulation tools and technologies, and the expectation is that stabilized production from the Well will be between 50-60 bopd;

-- Production at Forest Hill is classified as heavy oil, but is expected to realise a small premium to the price of West Texas Intermediate crude oil as the asphaltenes present are in demand by asphalt plants in response to the rapid economic growth taking place in North Texas;

-- The Company is now moving forward with plans to restore an additional two Forest Hill wells to production by early December 2017, in line with its strategy to increase overall net production to Mayan to 300- 500 bopd in the near term.

Eddie Gonzalez, Managing Director, said: "The initial performance of the Gilbreath well at Forest Hill is excellent. Together with the Stockdale Oil Field, Morris #1 well, that we recently brought into production, the Well will make a useful contribution towards us achieving our 300- 500 bopd near term production target from our current portfolio of projects in Oklahoma and Texas. Importantly, we believe that these results bode well for the other wells we have identified at Forest Hill, and add support to our plans to restore and stimulate a further three Forest Hill wells to production before the end of the year. Taken as a whole, believe that these new developments and the plans that we have for the first half of next year, will enable us to shortly reach our goal of transforming Mayan into a cash flow positive oil and gas company. In light of the successful stimulation of Gilbreath #19, we are now evaluating the reserve potential at Forest Hill and I look forward to advising the market in the near future as to the size of this valuable resource, which we are confident will confirm the significant asset backing that is now behind Mayan."

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:

 
                                       + 1 469 394 
 Eddie Gonzalez    Mayan Energy Ltd     2008 
                                       [phone] 
 Charlie Wood      Mayan Energy Ltd     326 
                   Beaumont Cornish    [phone] 
 Roland Cornish     Ltd                 3396 
                   Beaumont Cornish    [phone] 
 James Biddle       Ltd                 3396 
                   Cornhill Capital    [phone] 
 Nick Bealer        Limited             9612 
 

Notes:

Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas energy Company focussed on the redevelopment and enhancement of its upstream oil and gas interests in Oklahoma and 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 petroleum engineer 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.

Technical Glossary

Bopd: means barrels of oil per day. There are 42 gallons (approximately 159 litres) in one barrel of oil, which will contain approximately 5.8 million British Thermal Units.

EUR: Estimated ultimate recovery is an approximation of the quantity of oil or gas that is potentially recoverable or has already been recovered from a reserve or well.

Workover: The process of performing major maintenance or remedial treatments on an oil or gas well. In many cases, workover implies the removal and replacement of the production tubing string after the well has been killed and a workover rig has been placed on location. This operation saves considerable time and expense.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 14, 2017 02:00 ET (07:00 GMT)