Mayan Energy Limited Operations Update

 
TIDMMYN 
 
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil & 
                                      Gas 
 
12 January 2017 
 
                  Mayan Energy Ltd ("Mayan" or "the Company") 
 
       Shoats Creek update and restart of production at Oklahoma Energy 
 
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to 
announce an update on its operations at the Shoats Creek Field in Louisiana 
("Shoats Creek"), and of the recommencement of production at Oklahoma Energy 
("OKE").  This announcement is in line with Mayan's strategy to increase 
production by transforming Shoats Creek into a multi-well oil and gas 
operation, and also enhancing the value of its portfolio of non-core assets 
pending their further development or disposal: 
 
Shoats Creek 
 
  * Lutcher Moore ("LM") 14 was the first well to be connected to the newly 
    installed gas line (see RNS of 14 October 2016).  However, after 
    discovering that a hole has developed in the tubing allowing water to flow 
    upwards from Cockfield 4, gas production has now become blocked.  Remedial 
    work - including going to the well, pulling tubing and packer to isolate 
    the water with a cast iron steel plug will be required.  Further 
    announcements will be made when the Company makes progress in this regard; 
  * LM 20 has been connected to the gas line - production is yet to stabilise 
    at a consistent rate due to a variety of down-hole factors.  The Company 
    estimates that stable production in the region of 70 barrels per day (bopd) 
    from LM 20, will, in due course be achieved; this will be 14 bopd net to 
    Mayan. The Company will update the market when this has been achieved; 
  * LM 13 has been tested with a view to ascertaining its viability for 
    inclusion in the roll out of the Company's multi well re-entry program. A 
    Rok Quad Neutron Log was used to test LM13   with the objective of 
    ascertaining the viability of the well as a re-entry candidate. This 
    revealed the existence of two potentially material pay formations at 2,600 
    and 2,900 foot. 
      + These potential new formations had previously been regarded as water 
        however the technology afforded by the Rok Quad Neutron Log makes it 
        highly likely that they may indeed potentially productive sources of 
        oil, and if so may be comparable to the Frio formation which is located 
        at twice the depth. 
      + The Company will be looking for parties to come in on the exploration 
        of these formations, with the intention of derisking further 
        development of this prospect. Further announcements will be made when 
        the Company makes progress in this regard. 
 
Mayan has a 70.00% working interest ("WI") and 52.78% net revenue interest 
("NRI") in LM14, a 20.00% WI and 15.08% NRI in LM 20 in respect of oil, and a 
70.00% WI and 52.78% NRI in respect of gas, and 70.00% WI and 52.78% NRI in LM 
13.  In respect of the LM 13 2,600 and 2,900 foot formations, Mayan presently 
has a 100.00% WI and 75.4% NRI. 
 
Oklahoma Energy ("OKE") 
 
As part of efforts to unlock value for the benefit of shareholders, a review 
was made of non-core assets with the intention of ascertaining whether value 
could be enhanced.  In the case of its OKE assets in Oklahoma (See RNS 1 July 
2013), it was determined that if inherited obligations to Blue Rock Capital, 
LLC namely royalties of 41.5 % of gross revenues could be restructured, the 
field could be economic to Mayan.  Following negotiations with Blue Rock, 
agreement in principal has been reached that they would reduce their Royalty 
Payment from 41% to 5%; further the contingent liability due to Blue Rock of 
USD1.5 Million (as reduced by royalty payments from production) would be waived 
in exchange for a 10% stake of sale proceeds of the asset up to USD 200,000 and 
a 50% stake of proceeds in excess of USD 200,000. 
 
Present production from OKE is 8 bopd, and it is hoped that for a modest 
capital investment of USD 30,000 this can be increased to 30 bopd.  Mayan has 
100% WI in OKE and NRI of 75%. 
 
Commenting on the above Eddie Gonzalez said: "Working with re-entries and 
bringing back older fields is challenging.  However, I am encouraged by the 
steady progress we have made, and the prospects for upside that we have 
developed over the last few months.  And with the uptick in oil prices and 
higher growth expectations in recent months, I remain upbeat about the 
future". 
 
                                   **ENDS** 
 
This announcement contains inside information for the purposes of Article 7 of 
EU Regulation 596/2014. 
 
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                [phone] 
 
Roland Cornish            Beaumont Cornish Ltd            [phone] 
 
James Biddle              Beaumont Cornish Ltd            [phone] 
 
Elliot Hance              Beaufort Securities Ltd         [phone] 
 
Nick Bealer               Cornhill Capital Limited        [phone] 
 
Elisabeth Cowell          St Brides Partners Limited      [phone] 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

January 12, 2017 02:00 ET (07:00 GMT)