LONDON (Alliance News) - Mayan Energy Ltd is to change its name following an acquisition, the company said on Tuesday, whilst it has also raised GBP700,000.
Mayan is to buy Attis Oil & Gas Ltd, a US firm which holds a 50% stake in the Fort Worth field in Texas, operating 98 wells across 5,100 acres.
Attis has also worked with Mayan on the latter's Austin field and Zink Ranch field in Texas.
Mayan will pay GBP1.3 million for Attis, via the issue of 952.2 million shares at 0.14 pence apiece.
Mayan shares were 17% lower Tuesday at 0.13p.
The deal, Mayan said, was conditional on it completing a GBP700,000 share placing, which has now been finalised. Mayan offered 500 million new shares at 0.14p. This cash will go towards future work at Texas fields.
Following the deal, Mayan will change its name to Attis Oil & Gas, subject to shareholder approval.
Mayan Chair Paolo Amoruso commented: "The rationale for this merger is one of operational efficiency, economies of scale, increased acreage and production, exposure to a service provider and the creation of a cash flow positive platform from which to grow the enlarged group further.
"Over the last six months, we have undertaken a systematic review of Mayan's portfolio of assets, engaged Attis to rework our Austin Field and now implement an optimisation programme at Zink Ranch. During this time, we focused on improving our internal organisation and balance sheet and have been extremely impressed with Board and his operating team," Amoruso continued.
"We quickly recognised to transition to the next phase we needed an experienced operational team and we jointly recognised that the combined entities would strongly benefit from an amalgamation in order to build a solid, profitable oil and gas production company."
"This is an exciting period for Mayan, as we transition away from the asset review period and begin our next phase of transformation with work programmes underway across the enlarged group's portfolio. I look forward to providing further updates on our progress," he added.
