AOGL.L Regulatory News (AOGL)

Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas

 30 April 2019

Mayan Energy Ltd ('Mayan' or 'the Company')

Completion of Placing to raise £700,000, Issue of Equity & Closing of Acquisition

Mayan Energy Ltd (London AIM: MYN) is pleased to announce that, further to the announcement made earlier today regarding the Acquisition of Attis Oil & Gas Ltd ("Attis"), it has successfully raised £700,000 gross proceeds via a placing of 500,000,000 new ordinary shares of no par value in the capital of the Company (the "Ordinary Shares") (the "Placing Shares") with certain existing and new investors along with the shareholders of Attis at a price of 0.14p per share (the "Placing Price") (the "Placing"). The funds raised by the Placing will be used to fund further field enhancement work at Austin Chalk in Texas, initiation of operations at the Zink Ranch Field in Oklahoma, a seven well workover programme, including two plug and abandonment wells, at the Fort Worth Field and sub-surface studies at Zink Ranch and Austin Chalk. The Placing satisfies the final Condition Precedent to complete of the acquisition of Attis.

Attis Completion

Under the Sale and Purchase Agreement between the Company and the shareholders of Attis ("SPA") 952,197,460 Ordinary Shares are to be issued to the shareholders of Attis ("Consideration Shares"). 777,589,716 of the Consideration Shares issued under the acquisition of Attis, representing 81.7% of the Consideration Shares, are subject to a lock-in until 31 December 2019. The Consideration Shares will be issued and allotted with admission expected at the same time as the Placing Shares as further set out below.

The Attis shareholder group has also participated in the Placing to the extent of a £165,000 cash subscription. Following the completion of the Placing and Acquisition of Attis, the Attis shareholder group will hold a 28.31% interest in Mayan.

17,857,142 Ordinary Shares will also be issued to a third party consultant at the Placing Price for introduction of the transaction ("Settlement Shares").

Directors Fees

10,400,325 Ordinary Shares will be issued at the Placing Price in relation to the settlement of accrued Director fees to the Company's Chairman, Paolo Amoruso, for time spent over his monthly rate of £2,000 per calendar month basic rate ("the Settlement Shares"). Following the issue of the Settlement Shares, Mr Amoruso will hold 2.53% of Mayan.

Broker Warrants

In connection with the Placing, Mayan has issued 37,500,000 broker warrants to subscribe for new shares in Mayan, and these are exercisable at the Placing Price within three years from admission of the Placing Shares.

Admission of Placing Shares

Placing is conditional on Admission and application will be made for the 1,480,454,927 Placing Shares, Settlement Shares and Consideration Shares ("New Shares"), which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM (the "Admission"). It is expected that Admission will become effective and dealings in the New Shares will commence on or around 9 May 2019. 

Total Voting Rights ("TVR"):

Following the issue of the Ordinary Shares (being the Consideration Shares for the Acquisition of Attis, the Placing Shares and Settlement Shares), the Company's issued share capital will consist of 3,774,292,308 Ordinary Shares with voting rights. No Ordinary Shares are held in treasury at the date of this announcement and therefore following the Admission, the total number of Ordinary Shares in the Company with voting rights will be 3,774,292,308.

The above total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in the Company.

Special note concerning the Market Abuse Regulation:

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR"). Market soundings, as defined in MAR, were taken in respect of the Subscription, with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.

**ENDS**

For further information visit www.mayanenergy.co.uk or contact the following:

Notes:

Mayan Energy Limited is an AIM listed (London Stock Exchange) North American based energy company. It is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow leveraging commercially available technologies and projects that are shallow, low risk with low levels of capex and infrastructure already in place. It also remains interested in creating shareholder value by strategic investments in similar projects with high cash generative potential and by forming beneficial development partnerships that enable the use of pioneering and leading extraction technologies.