LONDON (Alliance News) - Texas-based Mayan Energy Ltd said Tuesday it will revert back to a 100% working interest in the Zink Ranch Field in Osage County, Oklahoma.
The move comes after discussions with its unnamed farm-in partner. Mayan will retain a 100% working interest, up from 50%, and a 75% net revenue. Longview Oil and Gas LLC will terminate the Farm-In Agreement signed in July 2017.
The oil & energy company said it received a further proposal from an "established third-party" contract operator identifying 3.5 million barrels of recoverable oil in Osage County.
Mayan in planning further development of the Zink Ranch field to start in late in the third quarter of 2018. The pilot pressure maintenance programme will involve the workover and restoration of production from five existing wells and conversion of one well to injection for pressure maintenance operations.
The cost is expected to be under USD30,000 per well, plus about USD100,000 to convert one well to injection. Mayan is in discussion with a "well known oil and gas company" to participate in the development as an industry partner. It is expected this will fund the pilot programme.
Managing Director Eddie Gonzalez said: "We are pleased to have resolved matters at Zink Ranch and agreed a way forward. Zink Ranch has similar characteristics to the Forest Hill and Stockdale Fields where following workovers of existing wells and the application of new techniques and technologies we recently announced combined total production of 272 gross / 137 net barrels of oil per day. Specifically, Zink Ranch is a proven oil producing field, with shallow wells and multiple pay zones in an oil friendly domicile, the state of Oklahoma and furthermore we already own 100% of the asset.
"Adoption of this development plan at Zink Ranch in no way lessens our commitment to growing our well count at the Stockdale or Forest Hill Fields, but rather adds an additional set of wells on which we can implement the technologies and techniques that have proven to be so successful on the Texas fields. Mayan continues to progress towards its near-term target of a total production rate of 500bopd, and we look forward to updating shareholders with updates from across our portfolio."
Stockdale and Forest Hill also are in Texas.
Shares in Mayan Energy were down 1.9% to 0.77 pence each Tuesday.
