Align update today5 Jun 2018 08:55
http://www.alignresearch.co.uk/mayan-energy/mayan-energy-gas-monetisation-update-5-jun-18/
We see this latest news from Eddie Gonzales as laying more groundwork to the creation of a highly profitable oil and gas production company. Indeed, there are another seven wells in Stockdale aside from the Morris #1 well, which are expected to be part of this gas play and could thus grow the resource further. These wells all have similar geology and are broadly expected to have the same attributes as the Morris #1 well. Management expects these to come on stream over the next couple of months. The key here is the infrastructure. Mayan has a trump card in its water disposal facility that has a capacity of 10,000 barrels of water a day, and which looks sufficient to handle up to 15 more wells like the Morris #1. In this area it is all about having the capacity to get rid of the water to produce oil at the higher rate.
In recent days, there was also update news from the Asphalt Ridge heavy oil sands project, where Mayan has an 17.3% interest in Deloro Energy that has invested in this project. At that time, shareholders learnt that Asphalt Ridge was proceeding well with the facility expected to be in full commissioning and start-up operations in the second and third week of June 2018.
There does seem to be so many positive developments going on at Mayan that continue to fail to be reflected in the share price. Investors really got their cards marked in mid-March 2018 when CEO Eddie Gonzalez purchased 2.2 million shares at 0.87p. With Cornhill having exercised their broker warrants and this overhang now having be sold in full, at some point the stock will have to reflect the on the ground operational progress. If it does not we would not be surprised to see a number of other companies run their slide rule over it as the economic uplift could be meaningful to many a player operating in South West of the US.
At the current price we remain highly positive and continue to reiterate our Conviction Buy stance with a medium-term target price of 2.1p.