26 Jul 2018 07:00
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas
26 July 2018
Mayan Energy Ltd ("Mayan" or "the Company")
SPA Amendment to extend Completion Period
and Issue of Equity
Mayan (AIM: MYN), the AIM listed oil and gas company, announces that, further to its announcement on 25 June 2018, it has signed an amended Sale and Purchase Agreement with Smart Bit LLC ("Smart Bit"), to extend the time for completion of the due diligence and completion of the outstanding conditions until 22 August 2018. The Company has also issued 18,437,951 ordinary shares to various advisors for services ("Settlement Shares").
Sale and Purchase Agreement Amendment ('SPA')
On 25 June 2018 Mayan announced a conditional Sale and Purchase Agreement with Smart Bit to acquire interests in 12 well bores, including seven additional vertical wells at the Stockdale Field in Wilson County, and three horizontal and two vertical Austin Chalk wells in Wilson and Gonzalez Counties, Texas (the "Acquisition") for a total consideration of US$605,000 (the "Consideration"). As announced at that time, completion is conditional on the satisfactory completion of full due diligence, agreed form of assignment of wells, and Mayan and the Vendor entering into a Joint Operating Agreement ("JOA").
Mayan has entered into a revised Sale & Purchase Agreement to extend the due diligence and completion period until 22 August 2018. This is to ensure clear title can be passed across with all necessary permits and approvals in place to enable immediate work-overs and production to commence from the target well packages. The Company will update investors once these conditions have been satisfied.
Issue of Equity to Advisors
The Company has also issued 18,437,951 Ordinary shares to various advisors to settle amounts owed and for contracted services over the next 12 months (the "Settlement Shares") at a fixed price of 0.6p (the "Settlement Price"). All shares issued will be subject to a 3- month lock-in and 3- month orderly market and the Settlement Price of 0.6p per share is the same price at which the Company undertook its last placing and represents a premium of approximately 13% to the closing mid-market price on 25 July 2018.
Issue of Warrants to Advisor
The Company has also issued 2,500,000 warrants to one advisor exercisable at 0.9p per ordinary share for a period of two years from the date of issue. These are based on same terms as the warrants attached to the previous equity raise announced on 25 June 2018.
Total Voting Rights ("TVR")
In total 18,437,951 Ordinary shares will be issued at the Settlement Price, and it is expected that Admission will become effective and dealings in the Settlement Shares will commence on AIM on or around 31 July 2018. The Settlement Shares will rank pari passu with existing Ordinary Shares.
Following the issue of the 18,437,951 Settlement Shares, the Company's issued share capital will consist of 1,401,823,416 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 right will be 1,401,823,416.
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").
**ENDS**
For further information visit www.Mayanenergy.com or contact the following:
Eddie Gonzalez | Mayan Energy Ltd | + 1 469 394 2008 |
Charlie Wood | Mayan Energy Ltd | +44 7971 444 326 |
Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
James Biddle | Beaumont Cornish Ltd | +44 20 7628 3396 |
Colin Rowbury | Novum Securities Limited | +44 207399 9400 |
Frank Buhagiar/Gaby Jenner | St Brides Partners | +44 20 7236 1177 |
Notes:
Mayan Energy Limited is an AIM listed (London Stock Exchange) North American based energy Company. The Company 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. The Company is currently primarily focussed on building out production at its Stockdale and Forest Hill oil fields in Texas.