TIDMMYN
RNS Number : 6523P
Mayan Energy Limited
11 February 2019
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
11 February 2019
Mayan Energy Ltd ('Mayan' or 'the Company')
Update on investee company: Petroteq Energy Inc.
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company,
is pleased to note the following update from TSX listed Petroteq
Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF) regarding the
Asphalt Ridge heavy oil sands project, Utah. Mayan currently holds
1,035,233 shares in Petroteq Energy Inc. with an associated
1,035,233 3-year warrants at USD $0.90.
Full Text of Petroteq's Release
Petroteq Energy Inc. (the "Company") (TSXV:PQE; OTC:PQEFF; FSE:
PQCF), a fully integrated oil and gas company, is pleased to
announce the execution of a definitive agreement for the
acquisition of 50% of the operating rights and interests relating
to oil sands under U.S. federal oil and gas leases encompassing
approximately 8,480 gross acres (4,240 net acres, less royalty) in
the State of Utah. The lands included in the leases are located in
P.R. Springs and the Tar Sands Triangle, two areas that have been
designated as "Special Tar Sands Areas" by the U.S. Bureau of Land
Management.
The details of the acquisition are as follows: TMC Capital, LLC
("TMC"), an indirect wholly owned operating subsidiary of the
Company, will acquire an undivided 50% interest in the operating
rights (working interests) under a federal oil and gas lease
located in P.R. Springs and five federal oil and gas leases located
in the Tar Sands Triangle. Under this transaction, TMC will pay
Momentum Asset Partners I, LLC, a Nevada limited liability company,
total consideration of US$10.8 million, US$1.8 million payable in
cash and US$9 million payable in shares, namely 15 million common
shares of the Company, at a deemed value of US$0.60 per share,
representing a premium of approximately 76% from the last closing
price of the common shares.
According to a report titled "Evaluation of Contingent
Resources" from Chapman Petroleum Engineering, Ltd. dated December
31, 2018 (the "Chapman Report"), the 50% interests in the P.R.
Springs leases to be acquired by TMC are estimated to contain gross
contingent resources of 45 million barrels of mineable oil/bitumen
in place, with an "arithmetic average after risk" estimate,
determined on a net basis (discounted by risk and royalty), of
20.38 million barrels of mineable oil/bitumen in place. Based on
certain assumptions in the Chapman Report concerning forecasted oil
prices and a recovery factor, the mineable resources that are
attributable to the interests in the P.R. Spring lease to be
acquired by TMC have an estimated "after risk" cash flow value of
US$1.19 billion on an undiscounted basis, a cash flow value of
US$153.2 million on a 10%/year discounted basis, and a cash flow
value of US$86.2 million on a 15%/year discounted basis.
According to the Chapman Report, the 50% interests in the Tar
Sands Triangle leases to be acquired by TMC are estimated to
contain gross contingent resources of 41.3 million barrels of in
situ oil/bitumen in place, with an "arithmetic average after risk"
estimate, determined on a net basis (discounted by risk and
royalty), of 20.7 million barrels of in situ oil/bitumen in place.
No economic evaluation of the resources contained in the Tar Sands
Triangle leases has been conducted.
The Chapman Report was prepared in compliance with the COGE
Handbook and NI 51-101 - Standards of Disclosure for Oil and Gas
Activities.
"Petroteq's disciplined approach to asset acquisition
prioritizes future financial strength while creating alignment to
the capabilities of our technology to enhance value by extracting
surface oil sands heavy oil in an environmentally friendly,
industry leading process. The low cost of capital required to
acquire these assets not only increases the quality of Petroteq's
assets, but is intended to allow the Company to leverage its
technology and adjust capital spending to harvest these resource
rich areas," said David Sealock, Chief Executive Officer.
"In light of the current environment, as we continue to work on
our 2019 production plan and if oil pricing maintains its
stabilization, Petroteq anticipates layering in production growth
that supports our strategy to initiate production and leverage cash
flow from operations. Donald Clark, our Chief Geologist, is
currently working on the Resource Development Plan that will be
issued this quarter," continued Mr. Sealock.
This acquisition is part of the Company's larger strategy of
developing a long term strategic capability to produce oil for
decades. Strategically, it makes sense for the Company to acquire
assets now on a cost-effective basis, so that if valuations in the
region rise, the Company will already have a large resource base to
monetize without having to pay incrementally higher prices for land
and mineral resources.
All securities issued pursuant to the above noted transaction
will be subject to a four-month hold period. The transaction is
ultimately subject to approval of the directors of the Company and
the TSX Venture Exchange.
About Petroteq Energy Inc.
Petroteq is a fully integrated oil and gas company focused on
the development and implementation of a new proprietary technology
for oil extraction. The Company has an environmentally safe and
sustainable technology for the extraction of heavy oil and bitumen
from oil sands, oil shale deposits and shallow oil deposits.
Petroteq is engaged in the development and implementation of its
patented environmentally friendly heavy oil processing and
extraction technologies. Our proprietary process produces zero
greenhouse gas, zero waste and requires no high temperatures.
Petroteq is currently focused on developing its oil sands resources
and expanding production capacity at its Asphalt Ridge heavy oil
extraction facility located near Vernal, Utah. For more
information, visit www.Petroteq.energy.
**ENDS**
For further information visit www.mayanenergy.co.uk or contact
the following:
+44 20 7236
Charlie Wood Mayan Energy Ltd 1177
+44 20 7628
Roland Cornish Beaumont Cornish Ltd 3396
---------------------------- ------------
+44 20 7628
James Biddle Beaumont Cornish Ltd 3396
---------------------------- ------------
+44 20 7236
Frank Buhagiar St Brides Partners Limited 1177
---------------------------- ------------
+44 20 7236
Gaby Jenner St Brides Partners Limited 1177
---------------------------- ------------
+44 20 7399
Colin Rowbury Novum Securities Limited 9400
---------------------------- ------------
Notes:
Mayan Energy Limited is an AIM listed (London Stock Exchange)
North American based energy company. It is actively pursuing a
primary recovery oil strategy focused on re-stimulating wells
within mature producing basins with immediate cash flow leveraging
commercially available technologies and projects that are shallow,
low risk with low levels of capex and infrastructure already in
place. It also remains interested in creating shareholder value by
strategic investments in similar projects with high cash generative
potential and by forming beneficial development partnerships that
enable the use of pioneering and leading extraction
technologies.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDGGUQAPUPBGGG
(END) Dow Jones Newswires
February 11, 2019 07:00 ET (12:00 GMT)
Mayan Energy (LSE:MYN)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Mayan Energy (LSE:MYN)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
