Mayan Energy Limited Operations update

 
TIDMMYN 
 
21 February 2017 
 
 Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil & 
                                      Gas 
 
                  Mayan Energy Ltd ("Mayan" or "the Company") 
 
 Operations update-Shoats Creek Field ("Shoats Creek") Oklahoma Energy ("OKE") 
and Mayan Drilling Fluids ("Mexico"), Rationalisation/ Monetisation of Non-Core 
                                    Assets 
 
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to 
announce an update on its operations at Shoats Creek, OKE, its investment in 
Mexico and of its non-core assets.  This announcement is in line with Mayan's 
strategy of seeking 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") 13- Shallow Well:  Gulf Coast Western Inc. ('GCW'), a 
    privately owned, Dallas based exploration and production company -which has 
    50% Working Interest ("WI") in four wells: LM 19, 20, 21 and 22- see RNS 15 
    March 2016 -has now agreed to take a 50% WI interest in the exploration of 
    this new formation on the LM13, the initial detection of which was 
    announced by the Company in its RNS of 12 Jan 2017. This allows Mayan to 
    share the costs of this work 50/50 with GCW. 
  * Work on untapping this potentially significant pay formation - the Roke 
    Quad Neutron Log indicated that the pay zone might be as big as the Frio- 
    will be commenced during the week commencing 20 February 2017, with 
    preliminary results expected two weeks later (the week commencing 6 March 
    2017). 
  * LM 20: GCW which has a 50% WI in this well continues to support the 
    rehabilitation of this well, which has suffered from sand ingression 
    problems.  The consensus view is that the installation of a Mono well pump 
    will remove the sand which is clogging the well, thereby creating 
    conditions which will enable fluids to flow once again, but which will 
    still retain the integrity of the well.  The intention is to start the next 
    stage of the rework the week commending 6 March 2017, with expected results 
    the same week.  Further announcements concerning this well will be made as 
    it develops. 
  * LM 14:  As announced on 12 January 2017, gas production remains blocked on 
    this well. Negotiations have recently been concluded with GCW, who have 
    agreed to take a 50% WI in this well- reducing the Company's WI stake to 
    20%.  Remedial work on this well will be recommenced once the results of 
    the LM 13 and LM 20 have been validated. 
  * LM13, LM14 and LM20 are the current focus of the Company's operational and 
    resources at Shoats Creek with the other development wells and 
    opportunities currently on hold until progress has been made thereon. 
 
Mayan now has a 50.00% WI and 37.7% net revenue interest ("NRI") in the LM 13 
Shallow Well formation.  And has 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 a 20.00% WI and 
15.08% NRI in LM14. 
 
Oklahoma Energy 
 
In Oklahoma, the Company has material interests in the OKE, Horizon, Zinc Ranch 
and Libby and Tinker properties. 
 
As reported in its RNS of 12 Jan 2017, having made a modest investment in OKE 
field, production has been restarted and the Company now has 11 wells operating 
and producing 18 barrels oil per day ("bopd") up from the 8 bopd previously 
reported.  A further three more wells will be restarted next week, and it is 
anticipated that this should lift production to 23 barrels.  Mayan presently 
has 100% WI in OKE and NRI of 75%. 
 
Mexico 
 
The recent focus of Mayan has been to generate a sustainable production base 
out of its US business as a platform for future growth and opportunities.  With 
the current uncertainty over US Mexican relations and the available capital 
being centred on the US business, all development in Mexico is on hold and 
under review. 
 
Commenting on the above Eddie Gonzalez said: "The decision of GCW, our partner 
in Shoats to come in on LM 14 and the LM 13 Shallow well are encouraging as it 
endorses the view that Shoats is a field worth persevering with.  More 
significantly by coming in as our partner on the LM 13 Shallow well; GCW gives 
real support to our view that we may have found a significant new pay zone at 
Shoats, which looks as though it may be part of a formation identified in other 
fields in the near vicinity.  If LM 13 plays out, it will have a major impact 
on our thoughts as to the development of Shoats. 
 
"I have to acknowledge however, that there has been an element of slippage 
against our earlier announced plan, which as I have previously explained has 
largely been for reasons beyond our control, none the less we remain committed 
to work on our short and medium term targets, and will be reporting our plans 
for 2017 in the near term". 
 
This announcement contains inside information for the purposes of Article 7 of 
EU Regulation 596/2014. 
 
                                   **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                [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; whose 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

February 21, 2017 07:46 ET (12:46 GMT)