Mayan Energy Limited Acquisition of Producing Interests (7859M)

TIDMMYN

RNS Number : 7859M

Mayan Energy Limited

01 August 2017

1(st) August 2017

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

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

Acquisition of Producing Interests

Mayan (AIM: MYN) is pleased to announce that it has entered into the acquisition of a 60% working interest in a 105.7 gross acre lease in Wilson County, Texas. This acquisition includes interest in one producing well producing approximately 50 gross barrels of oil per day from the Anacacho formation at approximately 3600'. The company intends to implement a broader strategy targeting opportunities to recomplete existing well bores originally drilled to the Austin Chalk formation in the shallower Anacacho formation and believes that substantial opportunity to grow its acreage position in Wilson County exists.

Highlights

-- Mayan has acquired a 60% working interest and 45% net revenue interest in a 105.7 gross acre lease producing from one well in Wilson County, Texas for:

o $60,000 in cash of which US$10,000.00 has been paid by the company with the remainder due August 15, 2017;

o As additional consideration Mayan has agreed to carry the seller on certain development expenses up to a total of U.S.$200,000 net to the seller's retained interest within 180 days.

-- The field lies on-trend with one of the historically great oil and gas deposits onshore U.S., the Austin Chalk. The Anacacho formation, a shallower formation present in Austin Chalk wells in Wilson County, is believed to present an opportunity to take advantage of the substantial infrastructure originally developed for Austin Chalk wells to economically exploit a formation that was not the primary objective during the original development phase of Austin Chalk wells in the early to mid-90s;

-- The Company has identified 10 low cost Anacacho re-entry opportunities that it is currently evaluating with the potential to expand its footprint in Wilson County subject to a successful financial return from this initial investment. The company expects approximately 80,000 to 180,000 barrels of potential recoverable reserves in each successfully completed Anacacho well.

Eddie Gonzalez, CEO, commented: "This acquisition in Texas together with the farm out and work program at Zink Ranch and Mathis in Oklahoma mark the completion of a shift in the strategy of the company toward a diversified production and cash flow focus leveraging the expertise of the recently announced additions to our team, Messrs. Kahn and Johnson.

The immediate addition of approximately net 30 barrels of production per day to our portfolio firms up the cash flow profile of the Company allowing us to focus our capital resources on growth in production in these low risk, minimally capital intensive projects which will drive steady production and cash flow growth going forward.

Work toward previously announced production additions at Shoats Creek continues and news will be announced in due course."

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"). .

**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; whose present operations which are focussed on the redevelopment and enhancement of its upstream oil and gas interests in Oklahoma, Texas and Louisiana.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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August 01, 2017 09:45 ET (13:45 GMT)