Mayan Energy Limited Shoats Creek and LM13 update, debt restructuring (5238E)
May 09 2017 - 2:00AM
UK Regulatory
TIDMMYN
RNS Number : 5238E
Mayan Energy Limited
09 May 2017
9 May 2017
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil & Gas
Mayan Energy Ltd ("Mayan" or "the Company")
Operational Update Shoats Creek ("Shoats") - Progress on Lutcher
Moore ("LM") 13, Progress in Debt Restructuring
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company,
is pleased to announce that encouraging progress has been made in
connection with its LM 13 Shallow-Well ("LM13") program and this
follows on from earlier announcements in February and March 2017 in
connection with this well. At the same time, the Company is pleased
to announce that it has concluded negotiations with a major
creditor settling its obligations at a considerable discount.
Shoats Creek Operations
Last week, the 2,900 foot formation, one of three formations
currently being targeted by Mayan on the LM13, was perforated and
swabbed for the first time with preliminary indications of the
presence of oil, natural gas and water coming from a three foot
thick sand formation. This supports the results indicated by
earlier Roke Quad Neutron Log ("Roke") analysis, as reported on 21
February 2017.
At the time it was expected that results - a determination as to
whether the 2,900 foot formation might prove to be commercial
viable -would be known quickly. However, late last week, weather
conditions - which have proven to be particularly inclement this
year- deteriorated once again, such that the field was flooded to a
level that it was no longer possible to gain access to it. This
delayed work for several days.
The site is once again now accessible, and a determination as to
whether the 2,900 foot formation might prove to be commercial
viable is now expected shortly.
Weather conditions aside, the next stage of Mayan's work on
LM13, was originally planned to be a perforation at the 2,600 foot
level, on the basis that the Roke detected anomalies at that level-
with the thought that it might be consistent with known oil
extraction at this level in nearby fields. However, having further
analysed the Roke logs, the Company is now of the view that it will
be more cost effective to revise its plans and to perforate at the
710 foot level, where the Roke logs indicate that there is a
potential entrapment zone ten feet thick. This would still leave
the 2,600 foot formation to be investigated at a later date, either
via LM 13 or by way of other wells at Shoats. Results from the work
on the 710 foot level will take 3 to 4 working days post
perforation to come through.
Mayan has a 50.00% WI and 37.7% net revenue interest ("NRI") in
the LM 13 Shallow Well.
Debt Restructuring Initiatives
The Company continues to work on reducing its historic levels of
debt and has recently concluded negotiations with one of its
largest creditors settling with them for 21 cents on the dollar,
lightening its debt load by close to USD 190,000 as a result.
Commenting on the above, Mayan's CEO Eddie Gonzalez said: "Since
coming on board my focus has been to turn Mayan's operations
around, and getting Shoats working has been a key element of that
strategy. Weather aside, I am now beginning to feel that our
persistence and the tenacity of our shareholders will be
rewarded.
What I am seeing is that the output from the Roke Log work, is
increasingly looking like it is "for real". The Roke logs indicated
that the zone at 2,900 foot was the weakest of three shallow zones,
with the strongest indicated at 710 foot. Our plan is to now
perforate at that 710 foot level and see what things look like
there. Once we have the test results back, we will be reporting on
them and look forward to doing that as soon as possible. I should
stress however, that it is too early to start waving flags, as
there is more work to be done (mother-nature willing) and, as I
have said before, even if it is "all lights go", completing the LM
13 Shallow well will require investment to install necessary
surface equipment and so will take a few months' more time.
As previously mentioned, subject to results from the
LM13-Shallow-Well, we will then be reviewing our plans for the
whole of Shoats and will report on them as soon as that exercise is
finished. At the same time, I am also pleased that we have been
able to conclude on satisfactory terms negotiations with a major
creditor and as with the Libby Tinker deals announced recently, I
continue to also work on the liability side of Mayan's balance
sheet, with the intention of improving the value of the company for
the benefit of shareholders."
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").
**END**
For further information visit www.Mayan energy.com or contact
the following:
+ 1 469 394
Eddie Gonzalez Mayan Energy Ltd 2008
+44 7971 444
Charlie Wood Mayan Energy Ltd 326
Beaumont Cornish +44 20 7628
Roland Cornish Ltd 3396
Beaumont Cornish +44 20 7628
James Biddle Ltd 3396
Cornhill Capital +44 20 7710
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 and Louisiana.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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