Mayan Energy Limited Operations Update (1134U)

TIDMMYN

RNS Number : 1134U

Mayan Energy Limited

19 October 2017

19 October 2017

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

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

Operations Update, Production in Stockdale Field

Mayan (AIM: MYN), the US onshore focused oil and gas development company, is pleased to provide an operational update across its interests. This includes the restoration of production at the Morris #1 well ('Morris1' or 'the Well') at the Stockdale Field, Wilson County, Texas in which the Company has an 60% working interest ('WI') and 45% net revenue interest ('NRI').

Restoration of production at the Morris1 Well at the Stockdale Field

-- The Well produced a total of 74 barrels of crude oil at an average of approximately 4 barrels per hour during an 18 hour period over three days

-- Following restoration of the Well's electric infrastructure, water handling is being added to enable continuous production

-- Follow-up testing has confirmed significant reservoir pressure at the Well with the static fluid level measured at 110 metres from the surface

-- As the reservoir is a fractured carbonate, production at the Well is to be optimised to deliver the average field level EUR of over 80,000 barrels per well via an acid stimulation

-- There are 10 wells within the Stockdale Field suitable for work over; the Morris1 Well being the first well expected to recommence production on the Field

Forest Hill Field, Wood County, Texas (70% WI and 52.5% NRI)

-- Initiation of work programme at Forest Hill Field - restoration of the electric service and access to salt water disposal facilities has been completed

-- Three wells have been pumped up with good pressure and fluid levels with flow test to commence shortly

-- There are 30 wells within the Forest Hill Field suitable for work over with a conservative average field level EUR of 50,000 barrels per well

Zink Ranch Field, Osage County Oklahoma

-- Workover planned at Zink Ranch in coming weeks to test the Prue formation in select existing well bores

Shoats Creek Field, Louisiana

-- Management expects to access the Shoats Creek field in the next week shortly to enable re-starting production at the LM 20 well

Eddie Gonzalez, Managing Director, said: "The initial results at the Stockdale Field begin to validate our new strategy and asset focus, which is firstly to acquire underperforming assets in Texas and Oklahoma, and then enhance production by applying the expertise of our new team and the specialised technology we now have at our command. With operations at Forest Hill Field now underway and work due to commence shortly at Zink Ranch and Shoats Creek, this is an exciting time for the Company. We are well on our way towards becoming a cash flow positive company with a healthy balance sheet and new growth opportunities appropriate for Mayan."

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.

All of the technical information, including information in relation to reserves and resources that is contained in this announcement has been reviewed by, Mr John Ladd. Mr Ladd is a petroleum engineer who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves and has reviewed the release and consents to the inclusion of the technical information.

Technical Glossary

bopd

means barrels of oil per day. There are 42 gallons (approximately 159 litres) in one barrel of oil, which will contain approximately 5.8 million British Thermal Units.

EUR

Estimated ultimate recovery (EUR) is an approximation of the quantity of oil or gas that is

potentially recoverable or has already been recovered from a reserve or well.

Workover

The process of performing major maintenance or remedial treatments on an oil or gas well. In many cases, workover implies the removal and replacement of the production tubing string after the well has been killed and a workover rig has been placed on location. This operation saves considerable time and expense.

**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; focussed on the redevelopment and enhancement of its upstream oil and gas interests in Oklahoma and Texas.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 19, 2017 09:23 ET (13:23 GMT)