RE: RNS - Big News30 Apr 2019 08:07
Overview:
· Acquisition to transform combined group's revenue / cash flow profile and provides Mayan with an in-house, experienced, operating team
· Attis has a 50% interest in 98 wells across 5,100 acres in the Fort Worth Field, Texas which currently produces 41 boepd net to Attis
· As operator of the Fort Worth Field asset, Attis generates approximately US$34,000 per calendar month in additional operating revenue
· Attis' oilfield services division, which also provides third parties with oilfield services, opens up an additional business line with growth potential
· Acquisition increases Mayan's acreage and net production to 8,841 acres and 98 boepd respectively, based on Mayan current net production of 57 boepd and transforms Mayan into a cash flow positive operator:
o Pro forma group turnover of approximately US$190,000 per month (based on current combined production and Attis operator revenues)
o Economies of scale savings generated across the new entities with initial combined company cost savings of c. US$20,000 per month due to elimination of third party operator charges for Mayan's Zink Ranch and Austin fields
· Thom Board, Attis' CEO and current Mayan technical advisor will join Mayan as its Chief Operating Officer and executive director - Mr. Board will be in charge of all of the day to day operations of the combined entities in the US
· £1.33m acquisition cost to be settled via issue of 952,197,460 new Ordinary Shares in Mayan at 0.14p per share ("Consideration Shares") representing 23.8% of the enlarged issued share capital following the Placing and Acquisition
· Attis shareholders have indicated their intention to invest £165,000 in the Placing.
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