Mayan Energy Limited Subscription and Mobilisation at Shoats Creek (9447A)

TIDMMYN

RNS Number : 9447A

Mayan Energy Limited

30 March 2017

7.00am 30 March 2017

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

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

Subscription, TVR Updates and Mobilisation at Shoats Creek

Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, wishes to announce that it has raised GBP600,000 (before expenses) with institutional and private investors through a Company arranged subscription (the "Subscription") of 12,000,000,000 new ordinary shares of no par value each (the "Subscription Shares") at a price of 0.005p per Subscription Share (the "Subscription Price"). The proceeds will be used to fund ongoing working capital and Shoats Creek Field ("Shoats Creek") development.

The Company is also pleased to announce that weather and terrain conditions at Shoats Creek have improved significantly which has allowed the mobilisation of equipment to the Lutcher Moore ("LM") 13 Shallow-Well to commence the re-entry, squeeze and perforation program, which was referred to in earlier announcements of 13 and 21 March 2017.

Shoats Creek

-- LM 13- Shallow-Well: As previously reported a re-entry and squeeze of LM 13 will be performed, with the objective of isolating the pay formations identified at 2,600 and 2,900 feet. Once the cement job has been completed, the well will be perforated and swabbed, first at the 2,900 level and if necessary at the 2,600 level. A determination as to whether these formations are oil bearing is expected within the first two weeks of work on the well.

-- As previously reported, once the new zone has been proved, further work will be required to complete the LM 13 Shallow-Well and install surface equipment, and further announcements concerning its economic viability and sustainable production rates will be forthcoming in due course.

-- LM 20: The next stage of the rework of this well will follow on from work on the LM13-Shallow-Well.

Mayan 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 50.00% WI and 37.7% NRI in respect of gas.

Subscription Details and Total Voting Rights ("TVR")

The Subscription is conditional on Admission and application will be made for the Subscription 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 Subscription Shares will commence on or around 5 April 2017.

Following the issue of the 12,000,000,000 Subscription Shares, the Company's issued share capital will consist of 33,144,630,415 Ordinary Shares of no par value 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 33,144,630,415.

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.

Following the Subscription, the Company intends to undertake a Share Consolidation Scheme, with the intention of consolidating 400 Ordinary Shares of no par value into 1 new consolidated share of no par value. This will bring the issued number of shares more in line with the size of the Company and effect a more manageable trading price for the shares and a further announcement concerning this exercise will be announced in due course.

Commenting on the above Eddie Gonzalez said:

"Given the recent delays and operational difficulties at Shoats Creek, the Company is pleased to have completed the Subscription today. This, along with recent non-core disposals, will improve the Company's treasury position whilst the work at Shoats is ongoing. We looking forward to announcing the results from LM 13 as they come through, and as I have said before, if LM 13 plays out, we expect it could have a major impact on our thoughts as to the development of Shoats".

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.Mayan energy.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; 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

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March 30, 2017 02:00 ET (06:00 GMT)