RNS.out11 Feb 2019 12:03
Petroteq Energy Inc Update
Mon, 11th Feb 2019 12:00
RNS Number : 6523P
Mayan Energy Limited
11 February 2019
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas
11 February 2019
Mayan Energy Ltd ('Mayan' or 'the Company')
Update on investee company: Petroteq Energy Inc.
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to note the following update from TSX listed Petroteq Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF) regarding the Asphalt Ridge heavy oil sands project, Utah. Mayan currently holds 1,035,233 shares in Petroteq Energy Inc. with an associated 1,035,233 3-year warrants at USD $0.90.
Full Text of Petroteq's Release
Petroteq Energy Inc. (the "Company") (TSXV:PQE; OTC:PQEFF; FSE: PQCF), a fully integrated oil and gas company, is pleased to announce the execution of a definitive agreement for the acquisition of 50% of the operating rights and interests relating to oil sands under U.S. federal oil and gas leases encompassing approximately 8,480 gross acres (4,240 net acres, less royalty) in the State of Utah. The lands included in the leases are located in P.R. Springs and the Tar Sands Triangle, two areas that have been designated as "Special Tar Sands Areas" by the U.S. Bureau of Land Management.
The details of the acquisition are as follows: TMC Capital, LLC ("TMC"), an indirect wholly owned operating subsidiary of the Company, will acquire an undivided 50% interest in the operating rights (working interests) under a federal oil and gas lease located in P.R. Springs and five federal oil and gas leases located in the Tar Sands Triangle. Under this transaction, TMC will pay Momentum Asset Partners I, LLC, a Nevada limited liability company, total consideration of US$10.8 million, US$1.8 million payable in cash and US$9 million payable in shares, namely 15 million common shares of the Company, at a deemed value of US$0.60 per share, representing a premium of approximately 76% from the last closing price of the common shares.
According to a report titled "Evaluation of Contingent Resources" from Chapman Petroleum Engineering, Ltd. dated December 31, 2018 (the "Chapman Report"), the 50% interests in the P.R. Springs leases to be acquired by TMC are estimated to contain gross contingent resources of 45 million barrels of mineable oil/bitumen in place, with an "arithmetic average after risk" estimate, determined on a net basis (discounted by risk and royalty), of 20.38 million barrels of mineable oil/bitumen in place. Based on certain assumptions in the Chapman Report concerning forecasted oil prices and a recovery factor, the mineable resources that are attributable to the interests in the P.R. Spring lease to be acquired by TMC have an estimated "after risk" cash flow value of US$1.19 billion on an undiscounted basis, a cash flow value of US$153.2 million on a 10%/year discounted basis, and a cash flow value of US$86.2 million on a 15%/year
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