Mayan Energy Share Discussion Threads

[jayj4u] 25/12/2017 19:54

BLOCK ENERGY!!!




Block Energy plc

("Block Energy" or the "Company")

Competent Person's Report and AIM Admission Update

AIM Admission Update

The Company reaffirms it's plan to dual-list on AIM and the NEX Exchange Growth
Market. AIM admission and NEX Exchange Growth Market re-admission is expected
in Q1 2018, and remains conditional on raising the pre-requisite funding
requirements.

CPR highlights significant reserves and gross contingent resources of 73
Million Barrels of Oil and 626 BCF of Gas on Georgian assets

Block Energy, the exploration and production company focused on the Republic of
Georgia, is pleased to announce the results of an independent Competent
Person's Report ('CPR') prepared by Gustavson Associates ('Gustavson'), which
confirm the asset backing behind Block Energy, comprising gross 2P oil reserves
of 1.6 MMbbl and an NPV10 of US$26.9m for its Norio licence (100% Working
Interest). A further 0.9 MMbbl have also been identified on the previously
producing West Rustavi permit where the Company has an agreement in place to
farm-in to a 75% working interest and 11.3MBbl at its Satskhenisi Licence (90%
Working Interest)

In addition, the CPR highlights major development potential across the asset
base, including gross contingent resources (2C) stand at 73 Million barrels of
oil and a significant 626BCF of gas across all three licences. All three
permits are located within immediate proximity to Georgia's largest discovery,
which at its peak produced approximately 70,000bopd, accounting for nearly 95%
of Georgia's total oil production and recently acquired (100% working interest
& operator) by major oil services Company, Schlumberger.

The complete CPR can be found at the following link:
www.blockenergy.co.uk/wp-content/uploads/2017/12/
Block-Energy-CPR.Gustavson-Final.112217.pdf

CPR confirms significant 2P oil reserves and value net to Block:

* Total net 2P oil reserves of 1.5 MMbbl (including West Rustavi), which have
been assigned an NPV10 of US$35.63m net to Block, and are comprised of:

+ Norio: 1.142 MMBbls with an NPV10 of US$26.9 million - based on
evaluation of current and historic production wells and also a number
of horizontal offset locations which will be drilled in upcoming work
programme

+ West Rustavi: 354.4MBbl with an NPV10 of US$8.6 million - based on
evaluation of previously producing wells which Block Energy plans to
reactivate/workover completing its farm-in to earn a 75% working
interest

+ Satskhenisi: 7.7MBbl with an NPV10 of US$0.13 million - based on
evaluation of current and historic production wells, a number of which
are included in a workover programme planned by the Company

CPR highlights company-making development / appraisal potential

* Total 2C gross unrisked contingent resources of 73 MMBbl oil and 626 BCF
gas comprised of:

+ Norio: 7.2 MMBbl and 1.9BCF of 2C gross unrisked contingent resources

+ West Rustavi: 28.4 MMBls and 456 BCF of unrisked contingent 2C
resources net to Block, based on Block completing its farm-in to earn a
75% working interest. The gas target forms part of the play being
targeted by Schlumberger on neighbouring licence

+ Satskhenisi: 27.8 MMBbl and 16.4 BCF of gross unrisked contingent 2C
resources in which Block has a 90% working interest

CPR forms part of ongoing process to dual-list on AIM and build a leading oil &
gas producer in Georgia and the wider region

* Following the expected AIM Admission in Q1 2018 and being fully funded,
Block Energy will commence phase one of a three stage work programme to
transform Block into a highly cash generative producer within 12 months

+ Phase 1: increase production to 1,100 bopd within 12 months from 20
bopd today via a low cost, low risk workover and sidetrack programme of
existing wells across all three licences - management estimates Block
will break even at 100bopd at US$50 per barrel

+ Phase 2: increase oil production to over 2,000 bopd via the drilling of
new horizontal wells and sidetracks; and test and flow gas discoveries
at the W Rustavi licence which have been assigned gross unrisked
contingent resources of over 600BCF (2C) and 1TCF (3C)

+ Phase 3: bring West Rustavi gas target online, which the Company
estimates has an all-in capex of less than $2/MCF and a net back of $3
/MCF

Paul Haywood, Director of Block Energy, said, "This year's final quarter has
been a progressive and exciting one. Block Energy has made significant strides
in accomplishing key milestones and further verified the Company's value
proposition.

The CPR confirms what management has long known: our portfolio of oil and gas
interests in Georgia not only provide Block Energy with significant asset
backing in the form of proven reserves but also multiple development
opportunities with company-making potential. Prior to Block Energy's suspension
on NEX, which has triggered a significant change in business and commencement
of the dual-listing process, Block Energy had a market capitalisation of
approximately GBP5 million. Since then, the Company has moved from a minority to
majority participating interest holder and operator in its key assets,
commissioned independent competent persons Gustavson and Associates, to
complete detailed analysis of the Company's license areas and short term field
development plans and prepared itself for a dual listing. The results of the
CPR assigns a NPV10 value of US$35.63 million to the development of Block
Energy's P2 Reserve base and importantly outlines the significant gas potential
in West Rustavi.

All this activity against a backdrop whereby the immediate neighbours,
Schlumberger, is focussed on the appraisal and development of the very same
play, offers great commercial potential and strengthens the operating
environment in Georgia.

We expect 2018 to be an exciting one for the company and we look forward to
updating the market in due course"

Further Information

The Company currently holds two licences and the right to earn-in to a third,
all of which are proven fields in Georgia that are either currently producing
or have historically produced: Norio; Satskenisi; and West Rustavi.

Norio

The Norio Field was discovered in 1938. A total of 55 oil wells have been
drilled on the block to depths of between 500-1500m, 31 of which produced oil
from the Miocene age Chokrak formation, a fractured, volcanic-sourced arkosic
sandstone reservoir with the best well recovering over 400,000 barrels. To date
1.9mbbl of light sweet crude oil has been produced largely from the Middle
Miocene (Chokrak) with some production from the Lower Miocene (Maikopian) and
Upper Miocene (Sarmatian). Current production stands at approximately 20bopd
from three wells drilled in the mid/late 1970s. The Norio block area is
approximately 5,570 acres (22.54 km2) and is located 40km from the city of
Tbilisi. Due to its low operating costs, highly favourable oil sharing terms,
and a crude field sale price of Brent minus US$9, Norio is cash flow positive
and generates sufficient revenue to cover its operational costs.

The Company intends to embark on a defined production enhancement programme,
including eight recompletions/workovers of existing wells and one sidetrack, to
increase production to over 250 bopd in the short-term.

Satskhenisi

The Satskhenisi Field, was discovered in 1956. A total of 64 oil wells have
been drilled on the block, 14 of which have produced oil from the Lower Miocene
age Maikop formation. This reservoir is a fractured, volcanic-sourced arkosic
sandstone formation. Satskhenisi has produced 310,000 barrels of oil to date
mostly from the Maikop and shallow Sarmatian lithologies. It shares a similar
geological setting and formations to Norio and as a result learnings from one
permit apply to the other. Current production stands at approximately 5bopd
from four wells. At US$45 per barrel, both fields opex break-even at a total
of 20 bopd. The Satskhenisi block area is approximately 6,024 acres (24.38 km2)
and is located 32 kms north of Tbilisi.

Block Energy intends to undertake seven reactivations and recompletions at
Satskhenisi to raise production to over 100bopd.

West Rustavi Block Xif

The West Rustavi Field on Block XiF was discovered in 1988. A total of 13 wells
have been drilled on the block, which has produced 500,000 barrels of oil to
date and tested commercial quantities of sweet gas. West Rustavi, which is
currently not producing, has historically produced 41 MBO and 41 MMcf from two
wells completed in the Middle Eocene horizon. West Rustavi shares the same
geology and play types as Schlumberger's adjacent Block XIb permit, where 200
million barrels of oil have been recovered and which is currently undergoing a
significant evaluation of its gas potential. The block area is approximately
9,328 acres (37.75 km2) and is located 6 miles (10 km) south-east of Tbilisi
and approximately 14 miles (23 km) south of Norio Field.

As part of a farm-in agreement to earn a 75% working interest in the West
Rustavi PSC, Block Energy intends to re-enter 2-3 wells and side track 3-4
additional wells to increase production to over 1,000bopd of oil from the
Middle Eocene. Furthermore, Block Energy also plans to re-test gas production
from previously discovered wells located within the permit.

Total 2P oil reserves for all three licences summarised in the table below
(Source: Gustavson CPR):

Oil Reserves, MBbl

Gross Net Net Present Value
Discounted at 10%,
MMUS$

Reserve P90 P50 P10 P90 P50 P10 P90 P50 P10
Classification (1P) (2P) (3P) (1P) (2P) (3P) (1P) (2P) (3P)

Producing 33.9 39.1 45 18.8 24.5 32.8 0.11 0.22 0.23

Developed 539.8 1,020 1,768 280.8 442 716.1 3.98 9.91 20.07
Non-Producing

Undeveloped 804.7 1,505.1 2,333.9 602.5 1,038 1,371.4 9.1 25.5 38.2

TOTAL 1,378.4 2,564.2 4,146.8 902.1 1,504.5 2,120.3 13.09 35.63 58.51

Total 2C Contingent Resources net to Block for all three licences summarised in
the table below (Source: Gustavson CPR):

Contingent Oil/ Condensate Contingent Associated/Free
Resources, MMBbl Gas Resources BCF

Block Low Best High Low Best High Risk
Estimate Estimate Estimate Estimate Estimate Estimate Factor
(1C) (2C) (3C) (1C) (2C) (3C)

Norio 3.1 7.2 13.9 0.8 1.9 3.7 75%

West 13.9 28.4 52 235 456 750 75%
Rustavi

Satskhenisi 14.7 25 39.3 8.4 14.7 23.9 75%

TOTAL 31.8 60.6 105.2 244 473 778

The Directors of the Issuer, accept responsibility and have approved the
information contained in this announcement.

For further information contact:

Block Energy plc Executive
Director Tel: [phone]
Paul Haywood Paul @blockenergy.co.uk

Peterhouse Corporate Finance Tel [phone]

Guy Miller / Mark Anwyl



END

[fairenough11] 22/12/2017 15:54

nice summary!

A lot going on and lot's of short term news flow to come for a Mcktcap of £6.4M.

A banker for 2018 imo.

[croasdalelfc] 22/12/2017 14:28

Mayan Time Line

Forest Hills

Late Dec – Permits for new adjacent leases at FH – 3 wells

Dec/Early Jan – workover rig on site for 3 wells as above – 4 days per workover

Early Jan/Late Jan - The approvals process for the transfer of operations on six (6) Forest Hill wells acquired, is expected to be completed shortly. Once approved, five (5) wells will be worked over utilising the contracted rig, in early 2018

Early Jan - The Gilbreath #19 well produced at an average rate of 43 bopd as announced on 14 November. This well is ready for immediate production once RRC approval is granted

Summary End Jan - On completion of the above acquisition and permitting, the Company will have nine [9] wells which, in tandem with its operating partner, will seek to produce and workover during the latter part of December and early 2018

Stockdale

Early Jan – Late Jan An Agreement has been reached to use a permitted water injection well on a 93.07-acre land tract contiguous and offsetting the Morris lease (Morris #1 well). The Company intends to lay a 1,500' water disposal line from its productive Morris #1 well to the injection well on this adjacent tract to dispose of the water produced from Morris. It is envisaged that additional wells on the tract may be converted to water injection wells as needed. The addition of a water injection well will facilitate enhanced production from the Morris #1 well and allow commingling of production from the Upper and Lower Anacacho formation

Early Jan - Morris #1 well likely to produce 35-50 bopd from both zones.

Late Jan – Additional wells come on line as above and the Company has engaged a land and lease acquisition specialist (landman) to acquire additional leases and wells for workover and/or re-completion in the area around the Morris #1 well.

Zink Ranch

January - The administrative process is underway, and the Company expects to announce its plans with respect to initiation of Zink Ranch development in the New Year.

Asphalt Ridge

- Petroteq Energy installing/building modular plant to begin production of heavy oil with initial target 1000 bopd (net 83 to Mayan) by March 2018
- Regular news flow expected as the modular build starts and extends (hopefully they can produce as each module is complete)

Block Energy IPO Q1 2018 on both AIM and Nex

Mayan has a £300k interest in Block Energy



In Summary with 10 wells due to come on line by End Jan 2018 200 bopd net to Mayan is achievable with upside to 250 bopd

Then by End Feb /March with AR coming on line 350+ bopd is within sight .
Valuation: End Jan 1.0p (£11.1 Mcap)
End Feb/early March 1.5p (£17.1 Mcap)

NB CERP is valued at £35m with production at 550 bopd (it was recently valued at £50m)

[spawny100] 22/12/2017 11:28

good time to do so imo gb. I would have added some if not already added at 0.6 recently. All small caps getting hammered in my portfolio today so will switch off and forget for now!

[grannyboy] 22/12/2017 11:24

Topped up this morning...must have gone through on the NEX!!

[keya5000] 22/12/2017 09:52

Good update. Company moving in the right direction.

[gimmetheloot] 22/12/2017 09:03

"We are targeting at least seven (7) wells on production by the end of January across Stockdale and Forest Hill.

With both Forest Hill and Stockdale then being cash flowing assets we can move on to identifying additional well opportunities on the acreage, identifying further assets and investment opportunities, such as our Deloro investment, to raise production and build value."

[cashandcard] 22/12/2017 08:52

A little disappointed at the RRC delays, but they can and do happen. Regardless, some very interesting snippets of info there;



-- A workover rig has been sourced and will be on site in the week of December 25th to immediately commence work to bring the three new wells into production - average workover takes 4 days
granted

-- On completion of the above acquisition and permitting, the Company will have nine [9] wells which, in tandem with its operating partner, will seek to produce and workover during the latter part of December and early 2018


"We are targeting at least seven (7) wells on production by the end of January across Stockdale and Forest Hill"


Cash

[fairenough11] 22/12/2017 08:51

Yes T Traders sell on news,doesn't matter what the news is.

1p+ as all those wells come on line.

Mckcap £6.4Million---Crazy,but a great buying opp imo.

[highly geared] 22/12/2017 08:48

Too many T10 traders here. Within a month we will see decent progress on a number of workovers and things starting to come together.
This is seen as a holding RNS ( things have been slower to get off the ground for reasons stated) hence the T10 briggade sell off .

[nicosevos] 22/12/2017 08:41

Why RNS news today?....12:30 market close, today....

[jayj4u] 22/12/2017 08:40

I would love to see this close up today! That will be amazing!

[fairenough11] 22/12/2017 08:14

"Acquisition of 3 additional wells. FH producing. 7 wells expected online by Jan end. 500bopd target within reach"

Buying opp with news sure to come over next week or so.,

[cudmore] 21/12/2017 12:49

Arab

Where’s FALIA now??????

[arab3] 21/12/2017 11:39

cudmore
21 Dec '17 - 09:54 - 1464 of 1471
0 0 0
Falia doing his ramping on other threads!! You’ve been warned! One of the biggest day traders on these BB’s. Don’t get sucked in!cudmore



lol

[minja19] 21/12/2017 11:13

cudmore doing his ramping on this thread!! You’ve been warned! One of the biggest day traders on these BB’s. Don’t get sucked in!

[fairenough11] 21/12/2017 11:06

TheLongerGame‏
@TheLongerGame
6m6 minutes ago
More
Now fallen back to straddle the resistance. Touch of volume and we will be in for a very good afternoon here #MYN
======================================================================================
Afternoon RNS?

[cudmore] 21/12/2017 11:00

LEG ready to bounce back up

[fairenough11] 21/12/2017 10:47

Just a reminder what's on offer here.

From Align Research.

10/12/2017
Mayan Energy – Update Note
Placing funds provide catalyst for continued re-rating of shares
Following news on the 16th Nov 2017 of a £2m placing & investment into SPV Deloro Energy LLC, in which a 49% interest is being acquired from Petroteq in the Utah based Asphalt Ridge heavy oil prospect, we revisit our valuation model for Mayan Energy. Trading at less than 2 times our earnings estimates for FY18 the stock remains dramatically undervalued.

Oil production expected to hit 500 bopd net by early summer 2018
Mayan is developing shallow low-risk projects with low levels of capex and existing infrastructure in the mature oilfields of Texas/Louisiana. Management plans to add 1,000 bopd annually with the promise to shareholders of no shortage of high impact value trigger events over the next few months.

New Asphalt Ridge project could add 400 bopd net within 30 months
The latest deal is a heavy oil play in Utah where oil sands are mined and oil extracted by a patented advanced technology invented by £40m market cap TSX-listed Petroteq Energy. In this deal, Mayan/partners will gain access to this technology to roll out to similar plays in Utah and worldwide.

Significant increase in reserves is on the cards
Mayan has fast improving fundamentals and significant inventory of new wells & reserves, which should provide a significant reserves upgrade which we anticipate will provide a material uplift in the value of the company.

DCF analysis reveals an upside of almost 700%
Discounting the forecast cash flows (at a conservative rate) from the workovers/new wells at the existing operations, as well as the new Asphalt Ridge project allows us to confidently increase our near term target price to 2.1p. We update coverage of Mayan Energy & move from a Speculative Buy to a Conviction Buy stance.

====================================================================================

Mayan Energy
Rapidly growing oil production from low-cost, distressed assets
Dallas based Mayan Energy listed on AIM in 2013 under the name Northcote Energy. In September 2016, successful US business man Eddie Gonzalez became CEO and introduced a new management team adopting a sensible new strategy.

Initial target to grow oil production to 1,000 bopd in 2018
Mayan is re-focusing on the mature oilfields of Texas and Oklahoma. Developing shallow, low-risk projects with low levels of capex and infrastructure already in place. From this sound base, the company is seeking to grow production to 1,000 bopd within 12 months, adding 1,000 bopd annually thereafter.

The Board & Management team has just invested £330,000, aligning interest with investors
Eddie Gonzalez has started building an impressive team of oil industry heavy hitters. One of them, Dr. David Kahn, who has been behind a number of 10,000+ bopd companies, has invested £250,000. This level of investment speaks volumes for the directors’ desire to see Mayan become a successful growth stock.

Using powerful technologies to increase returns
New technologies will be used to improve downhole information and recoveries. These include the nanosurfactant ERA-3, which has been shown to improve recovery as much as 5-fold. This is a proprietary technology developed and owned by Mayan’s new Chief Technical Officer, Dr. David Kahn.

DCF analysis reveals potential upside of in excess of 1,300%
Discounting our forecast cash flows (at a conservative rate) following the well workovers & new wells at the company’s growing list of projects & also adjusting for a further modest capital raise provides upside towards 1.6p. With the shares currently at 0.28p, and reflecting the risks involved, we initiate coverage of Mayan Energy with a Speculative buy stance.

====================================================================================

[fairenough11] 21/12/2017 10:25

There is more than one RNS expected in the very short term.

[fairenough11] 21/12/2017 10:18

Sierra117 💵‏
@Sierra117_Jon
7m7 minutes ago
More
#MYN The volume is coming in, just what you want when looking for a technical breakout.

Cup and handle pattern potentially in play, waiting for that handle breakout on the short term.... it's having a go at it today.