TIDMMYN
RNS Number : 1250W
Mayan Energy Limited
15 April 2019
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
15(th) April 2019
Mayan Energy Ltd ('Mayan' or 'the Company')
Operations Update
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company,
is pleased to provide an update on its Texas operations in the
United States which encompass the Austin Field, where 6 wells have
successfully been bought back on stream and Zink Ranch, in
Oklahoma, where production enhancements are planned via its
Operator, Attis Operating Inc. ("Attis") a wholly owned subsidiary
of Attis Oil and Gas Ltd.
Austin Field
The Austin Field wells have been brought on production following
the rework programme. The cumulative mean production over the last
12 days of the reworked wells is currently 66 bopd. and total
barrels of oil produced 343 bbl. With the improving oil : water
ratios currently being recorded, Attis is expecting a further 10%
increase to daily production.
The matrix below shows the wells on production with mean barrels
of oil per day and total barrels of oil produced;
Well Total Depth Formation Mean BPD Total BBL.
(ft)
Edwards Unit
2H 3,080 Austin Chalk 6.38 72.50
------------ ------------- --------- -----------
Garrison #1 6,964 Austin Chalk 6.47 25.87
------------ ------------- --------- -----------
Kosub Unit 2,854 Austin Chalk 1.14 1.14
------------ ------------- --------- -----------
Montsanko
# 4,961 Anacacho 10.44 10.44
------------ ------------- --------- -----------
Morris #1 5,102 Anacacho 4.93 41.76
------------ ------------- --------- -----------
Ritchie-Talley
Unit 1 5,890 Austin Chalk 37.12 191.40
------------ ------------- --------- -----------
TOTALS: 66.48 343.11
--------- -----------
-- Following the results of the property assessment conducted by
Attis in Q4 2018, the Company began workovers on the 7 wells that
make up the Austin Field in January 2019.
-- In total, during the first quarter, six wells have been
brought back online as producing wells.
-- Since work commenced on the Austin Field, 343 barrels of oil
were produced and 340 barrels sold, including residual and workover
stock.
-- The Company believes the Austin Field should stabilise at
approximately 72 barrels of oil per day gross / 47 net, which
approximates the Company's breakeven point of $65,000 per month
(assuming US$62 WTI price) which is a discount to the current 6
month forward price of $64.
-- Following further appraisal of the topside equipment the
Neubauer-Stanush will be reworked and put on production in May.
-- The rework programme has been completed 10% below budget,
delivering a reduced payback period and improved return on
investment.
-- Attis has also completed 'service, repair and replace' at all
well locations and tank batteries.
-- The Austin Field is now being operated by Attis pumpers with
direct oversight by the Company's operations and administration
team.
Zink Ranch
The Company settled its outstanding issues with the prior
Operator, Glen Supply, during the month of January and has been
working diligently to transition ownership to its wholly owned
Oklahoma subsidiary. The requisite transfer documentation will be
shortly lodged with the Bureau of Indian Affairs and the Company
has begun the initial stages of field planning and evaluation in
order to optimise field development with a qualified geologist and
geophysicist.
Following the strong and cost-effective performance of Attis at
the Austin Field, Mayan has engaged Attis as a subcontractor to
operate the Zink Ranch field.
-- Zink Ranch has a total of 50 historic wells and 18 active wells.
-- The Attis team have been in the field over the past week
assessing the near-term requirements for optimisation.
-- Initial topside field production enhancement techniques will be applied during April.
-- The Company expects to see enhanced production from the
current 6-8 bopd with limited capital being applied.
-- Importantly, the field operations cost has been reduced by
20% from 1 April 2019 under the sub-contractor agreement with
Attis.
The Zink Ranch field production and revenue numbers have not
been incorporated in the Company's breakeven analysis, however
Mayan expects the field to have a significant impact to its bottom
line .
Termination of relationship - Iron Hawk & Red Bensh Energy
LLC
Attis has been subcontracted to operate the Zink Ranch field on
behalf of Northcote Cleveland LLC, Mayan's subsidiary that will be
the bonded operator and is the 100% owner of the Zink Ranch field.
As a result of the appointment, the Company won't be pursuing the
JOA arrangement with Iron Hawk Energy Group JV previously announced
in RNS on (29 January 2019).
Furthermore, Mayan and Red Bensh Fork Energy LLC have mutually
agreed to terminate the Memorandum of Understanding ("MOU").
Neither Party has any further obligations under the MOU relating to
mutual evaluation of their respective fields. Mr. Bensh has
resigned from the technical advisory committee.
Charlie Wood, CEO of Mayan, said, "We are pleased to report that
we are already delivering close to breakeven production from the
Austin Field and expect the numbers to improve going forward.
Importantly, through this initial field development programme we
have established a strong working relationship with our operator,
Attis, who has shown a disciplined cost- controlled approach in
delivering production resulting in an excellent return on capital
deployed. We will continue to monitor performance and proactively
implement further enhancements. We are applying the same methodical
approach at Zink Ranch as we take control of operations and make
further assessment of the development opportunities across our
acreage. As part of this plan, the Company has begun sub surface
geological studies at Zink Ranch with a view to further development
and establishment of reserves and additional exploration
opportunities will be evaluated at the Austin Field in the near
future."
**ENDS**
For further information visit www.mayanenergy.co.uk or contact
the following:
Charlie Wood Mayan Energy Ltd +44 20 7236 1177
Roland Cornish Beaumont Cornish Ltd +44 20 7628 3396
---------------------------- -----------------
James Biddle Beaumont Cornish Ltd +44 20 7628 3396
---------------------------- -----------------
Frank Buhagiar St Brides Partners Limited +44 20 7236 1177
---------------------------- -----------------
Gaby Jenner St Brides Partners Limited +44 20 7236 1177
---------------------------- -----------------
Colin Rowbury Novum Securities Limited +44 20 7399 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.
Technical sign off
All of the technical information, including information in
relation to reserves and resources that is contained in this
announcement has been reviewed by, Mr Thom Board, a member of the
Company's Technical Advisory Committee. Mr Board is a member of the
Society of Petroleum Engineers who is a suitably qualified person
with over 24 years' experience operating and developing oil and gas
assets. Mr Board has reviewed the release and consents to the
inclusion of the technical information.
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
UPDMMGMDLDKGLZM
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