LONDON (Alliance News) - Mayan Energy Ltd said on Tuesday that its Texan assets are currently producing 272 gross barrels of oil per day, and dropped its 50% working interest in the Shaots Creek Field, Louisiana.
In Stockdale Field, Wilson County, 498 gross barrels of oil were recovered during the first six days of production from the Morris #1 well, with production currently at low costs, and a downhole pump installed within the well following a shut in. Realised oil price is WTI less USD5.00, which based on current oil prices will yield USD62 per barrel.
Four wells in the Forest Hill field in Wood County produced at an average rate of 190 gross barrels of oil per day, with production at low cost, and the realised oil price at WTI plus USD2.00, which will yield USD69 per barrel.
There are plans to add more wells to production at Forest Hill, with work expected to start in the coming weeks, subject to regulatory approval.
"Thanks to the excellent well result at the Stockdale Field and the four producing Forest Hill wells, production of over 130 barrels per day net to Mayan's interest places us in a strong position: positive operating cash flow from growing production in a robust oil price environment. By removing what had proven to be a significant burden and resource drain, the relinquishment of Shoats Creek strengthens the company's position and further focuses our energies on high return assets," said Managing Director Eddie Gonzalez.
Shares in Mayan Energy were up 3.5% at 0.74 pence on Tuesday.
