MYN.L Share News (MYN)

(Sharecast News) - Oil and gas company Mayan Energy updated the market on its Forest Hill assets in Wood County, Texas on Thursday, where it holds a 75% working interest and a 52.5% net revenue interest in two oil and gas leases. The AIM-traded firm said that, in accordance with its rule 11 obligations, it was advising that it is currently awaiting approval from the Wood County Magistrate to obtain lease right-of-way access into the Forest Hill property.Upon approval, which following counsel it anticipated would be forthcoming in the "near term", it would be able to immediately resume production on the leases, which had six producing wells and 225 other local wells with 20-acre spacing and good reservoir characteristics."We look forward to providing a full update on the portfolio next week outlining where we are in terms of production and development in both Texas and Oklahoma," said Mayan Energy executive chairman Charlie Wood."We believe the delay at Forest Hill will be resolved this quarter and with production coming on stream across the portfolio, a strengthening of our operation capabilities with the contracting of the likes of Derrick Oilfield Services, who are on an incentive driven package at Zink Ranch, we believe we can generate strong returns from the current asset base."Importantly, with cost cutting, operational breakeven is in the region of 80 barrels per day and in tandem with the realisable value of our investment portfolio which stands at $1.5m, over and above our existing cash resources, we do not anticipate the need to utilise the market in the near term."