Zinc Ranch18 Aug 2018 15:44
news for ZR must also be soon - 2 months ago since ZR RNS - Note Contractor needs to crack on to recover some of share priced earnings have elected to take shares at 0.85p
"The Contractor indicated a preference to receive the initial US$125,000 payment in shares of Mayan which the Directors believe highlights the Contractor's confidence in the success of not only the programme at Zink Ranch but also ongoing activity across Mayan's Texan assets"
June RNS
Turnkey contract entered into with a third-party oilfield service company (the "Contractor") to initiate a well workover programme, for a total of five wells at Zink Ranch targeting 100 net barrels of oil per day in the mid-term
Following the approval of Mayan as the Operator at Zink Ranch, intention for four wells to be worked over as producers from the Pennsylvanian Sands formation - initial baseline level of production for each well to be established over a 30 day period
A fifth well will be worked over as an injection well as part of a pilot pressure maintenance test project focused on enhancing production levels
Nitrogen will be injected in three phases with the amount injected increasing with each phase - the performance of the wells will be closely monitored after each phase to evaluate the impact of the test project
Subject to positive results, the Company intends to implement a field wide pressure maintenance programme in 2019 to enhance production on the remaining 12 wells in the field.
As part of the turnkey contract an environmental impact study, permitting and site selection for the drilling of possible future new wells, beyond the initial five referenced above, will be undertaken
The total cost of the programme is US$255,000 which includes the following payments to the Contractor:
Initial payment of US$125,000 (£94,700) payable in Mayan shares based on £0.0085 per share equivalent to 11,141,176 Ordinary Shares.
Additional payment of US$100,000 upon completion of the five well workovers prior to the nitrogen injection. Mayan can elect to pay in cash or Ordinary Shares at the time of completion.
Payment of US$5,000 per month in cash for six months for pumping and regulatory reporting services
The Contractor indicated a preference to receive the initial US$125,000 payment in shares of Mayan which the Directors believe highlights the Contractor's confidence in the success of not only the programme at Zink Ranch but also ongoing activity across Mayan's Texan assets
The Contract anticipates initiation and completion of the five workovers within 30 days of Mayan assuming operatorship at Zink Ranch - the Company has engaged counsel to complete this process and anticipates a timely resolution of this matter
Sign In
Follow the stocks
