RNS15 May 2018 08:04
Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased to announce that the Company has concluded discussions with its Farm-In partner and consequently will now revert back to retaining a 100% working interest in the Zink Ranch Field in Osage County, Oklahoma ('Zink Ranch' or the 'Field'). Mayan has further received a proposal from an established third-party contract operator based on an independent review by a leading geologist in Osage County identifying up to 3.5 million barrels of recoverable oil that can be economically developed through a multi-phase, low cost development programme. Zink Ranch comprises 1,560 net acres held by current production of approximately six barrels of oil equivalent per day. The development programme establishes a 160 gross barrels per day end of 2019 target for Zink Ranch.
� Mayan to retain a 100% Working Interest and 75% net revenue interest in Zink Ranch following successful negotiations with its former Farm-In partner on the Field, Longview Oil and Gas LLC ("Longview") to terminate the Farm-In Agreement dated 11 July 2017
o This has no impact on Mayan's on-going development partnership with Longview at Stockdale and Forest Hill Fields in Texas and purely reflects identification of a better suited partner for the development of Zink Ranch
� Pilot pressure maintenance programme ('PPMP') will involve the workover and restoration of production from five existing wells and the conversion of one well to an injection well for pressure maintenance operations - PPMP is scalable enabling field wide rollout subject to initial success
� Existing infrastructure at Zink Ranch will limit the cost of the PPMP to under $US30,000 per well plus approximately US$100,000 to convert one well to injection, purchase a tri-plex pump and make necessary surface improvements to implement the pressure maintenance programme
� The Roke Quadneutron Log tool and other technologies and techniques that have worked well on the Forest Hill and Stockdale Fields will be deployed at Zink Ranch
� The plan further identifies, subject to submission of an environmental impact study [and anything else?], 9 low risk, shallow, proven drilling locations based on the work a pre-eminent drilling geologist in the area
� Mayan is in discussions with the author of the plan KVD Oil LLC to oversee the implementation of the revised field development plan as replacement operator
� Mayan is also in discussions with a well known oil and gas company to participate in the development of Zink Ranch as an industry partner on terms to be finalised. This is expected to fund the PPMP and then potentially further development of Zink Ranch as outlined above.
� Initial production data from the programme expected in late Q3 2018
Eddie Gonzalez, Managing Director, said: "We are pleased to have resolved matters at Zink Ranch and agreed a way forward.