RNS - Chairmans Statement11 Jun 2019 09:50
Outlook
This year has not been without significant challenges and accordingly, some difficult decisions had to be made regarding Mayan's management, portfolio, and strategy. We relinquished our interest in the Shoats Creek Field in Louisiana and shut down production as we re-assessed our asset base. Based on the third-party study conducted by Attis Oil and Gas, we are exploring options with regard to our Forrest Hill assets. We released all of our employees in the US as we sought to reduce our burn rate, tightly control our finances, and implement effective fiscal policies and corporate governance. We renegotiated contracts, settled numerous outstanding claims and potential lawsuits with creditors, closed more than 15 dormant entities, started preparing and filing US tax returns for the last four years, and began the process of settling outstanding liabilities with the US Internal Revenue Service for employment taxes. Post period end we filed the outstanding tax returns, paid the employee taxes to the IRS, further consolidated our entities and balance sheet, and resumed workovers in the Austin Field and Zinc Ranch.
All of this came at a cost. While we significantly cut expenses, salaries and overhead, we were forced to sell our shares in Block Energy at a loss and had to further dilute our shareholders in order to raise funds to settle claims and resume operations. Through this, Mayan has emerged a completely different company that ultimately led us to the post period end acquisition of Attis Oil and Gas. We feel that we're better equipped to grow with a stronger management, board, and a solid portfolio of development assets in Texas and Oklahoma, as well as additional exploration opportunities. We believe that this platform provides us with the opportunity to grow Mayan into a profitable company in the coming year. We further believe that our investment in Petroteq Energy is poised to yield significant returns for the Company. While its share price has been under pressure lately due to production delays and share dilutions to acquire prospective acreage, we continue to believe in the technology and the progress made to date. Our investment wasn't based on a 6 or 12 month horizon, but rather to provide us with a solid investment in what we believe to be ground-breaking technology. Further, we hold 1,035,233 warrants with a three year expiration date that we hope will also allow Mayan to further expand its position.
Having taken over the role of Chairman of Mayan in October of 2018, I would like to take this opportunity to sincerely thank our shareholders for their continued commitment to Mayan and the trust they placed on us to bring in a solid management and operational team and in turn re-build this company with the goal of becoming profitable during the coming year.
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