LONDON (Alliance News) - Mayan Energy Ltd on Thursday reported a new gas discovery in Texas while also noting positive progress on a Utah project in which it has an interest.
Mayan said it has found new gas as part of development work at the Morris No. 1 well on the Stockdale field in Wilson Country.
The discovery is some 20 feet of net pay with approximately 10 feet of oil/condensate below a 10 foot gas cap. Mayan estimates there is three billion cubic feet of recoverable natural gas that could produce at a rate of around 1.3 million cubic feet a day and 10 to 11 barrels of condensate a day.
Mayan is currently testing the Morris No. 1 well and it expects to have initial production from the Anacacho zone "shortly", as it looks to increase net production to 300 to 500 barrels of oil per day in the medium term.
The company has also secured the right to use a second salt water disposal well which could potentially increase production in future.
At the Asphalt Ridge heavy oil sands project in Utah, Petroteq Energy Inc is completing final construction at the project as well as downstream market contracts for produced heavy oil.
It is also, Mayan said, further investigating business opportunities for its technology and working with leaseholders and government agencies over the development of the project.
Mayan has an interest in the project through its 18% stake in Deloro Energy LLC, which has a 49% holding in Asphalt Ridge.
Managing Director Eddie Gonzalez said: "Together with production from the commingled Lower and Upper Anacacho formations, the Morris#1 has the potential to not only become a major source of cash flow for Mayan but could de-risk multiple additional opportunities at Stockdale."
"With this in mind, the extra salt water disposal well gives us extra disposal capacity to allow us to add more wellbores that are high in potential to the re-work programme we have had much success with so far this year both at Stockdale and at Forest Hill."
He added: "With so much activity across our Texan assets as well at the Asphalt Ridge heavy oil project in Utah, this is an exciting time for the company and I look forward to providing further updates on our progress."
Shares were up 3.5% on Thursday at 0.75 pence each.
