Mayan Energy Limited Operations Update and Issue of Equity (9494P)

TIDMMYN

RNS Number : 9494P

Mayan Energy Limited

06 September 2017

6 September 2017

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

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

Operations Update, Issue of Equity and TVR

Mayan (AIM: MYN) is pleased to announce the following operations update regarding it operations at Shoats Creek, Oklahoma and the recently acquired interests in the Stockdale Oil Field, Wilson Country and Forest Hill Field in Wood County, Texas. In addition, it has also completed a supplementary placing to the previous placing announced on 8 August 2017 of 287,000,000 new ordinary shares of no par value each ("the Ordinary Shares") in the capital of the Company at a placing price of 0.3 pence (the "Placing Price") per Ordinary Share (the "Placing Shares"). The ordinary shares issued were originally contemplated to be included in the placing announced in the RNS of 8 August 2017 (the "Placing") but were delayed by documentation requirements associated with the non-UK investors participating.

Furthermore, the Company is pleased to announce the following operational highlights:

Operational Highlights

-- Mayan has initiated the work plan at the Stockdale Oil Field, Wilson County, Texas and plans to initiate production testing during the week commencing 11 September 2017 and results will be announced thereafter;

-- Mayan is coordinating service providers to initiate the work program at the Forest Hill Field in Wood County, Texas and anticipates operations to commence in the second half of September 2017;

-- Mayan has engaged a service provider to provide the environmental studies associated with implementation of the work program at the Zink Ranch Field in Osage County, Texas. Mayan anticipates completion of the study and initiation of operations at the beginning of October;

-- Operations to restore continuous production to the Lutcher Moore #20 well have been completed and successful with a 24-hour test yielding 123 barrels of oil. Flooding associated with Hurricane Harvey has necessitated shutting in the Lutcher Moore #20 and ceasing operations at Shoats Creek generally until weather conditions improve; and,

Placing Details

The Company has raised gross proceeds of GBP38,462 through the conditional placing of 12,820,514 Ordinary Shares at the Placing Price. 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 12 September 2017.

Settlement Shares

In addition, the Company has also issued 10,000,000 Ordinary Shares at the Placing Price to meet certain adviser and Consultant fees (the 'Settlement Shares').

Application will be made for the Settlement Shares, which will rank pari passu with the existing ordinary shares, to be admitted to trading on AIM ('Admission'). It is expected that Admission of the Settlement Shares will become effective and dealings will commence on or around 12 September 2017.

Use of Funds

The funds raised by the Placing will be used to supplement the placing announced in the RNS on 8 August 2017 and are in accordance with the associated Use of Funds.

Eddie Gonzalez, CEO, commented: "We continue to make progress across all of our main initiatives. Preparation for initiation of work programs in Oklahoma and Texas are well underway with news expected imminently on multiple fronts. The investors associated with this Placing are highly supportive internationally based investors that will support the Company and its initiatives going forward. While initially contemplated to be part of the Placing announced 8 August 2017, documentation requirements prevented this from occurring at that time."

Total Voting Rights ("TVR")

Following the issue of the 22,820,514 Ordinary Shares (being 12,820,514 Placing Shares and 10,000,000 Settlement Shares,) the Company's issued share capital will consist of 650,310,294 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 650,310,294.

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"). 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.

Qualified Person

The technical information that is contained in this announcement has been reviewed by 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.

**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, Louisiana and Texas.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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September 06, 2017 03:45 ET (07:45 GMT)