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

31 October 2017

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

Operations Update

Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased to announce an update on its activities as its looks to raise production and build and optimise its portfolio of producing assets in North America.

Highlights:

· Production restored at the Forest Hill Field Project, Wood County, Texas ('Forest Hill') following first well re-entry

· Initial flow of 21 bopd (15 bopd net to Mayan) with production stimulation expected to deliver sustainable production of over 50 gross barrels per day ("bopd")

· Additional two wells to be brought back on stream by end November 2017

· Further testing and re-logging at Morris 1 well at Stockdale Field ('Stockdale') positive with significant potential to optimise production level and exploit newly identified pay zones

· Work at Zinc Ranch to increase production from current levels and test Prue formation

· With work ongoing at Forest Hill, Stockdale and Zink Ranch, the Board believes a medium-term target of 300-500 bopd (net to Mayan) is achievable

Eddie Gonzalez, Managing Director, said: "We now have the assets in place to begin to deliver on our objective of 300 to 500 net bopd to Mayan. Between Forest Hills, Stockdale and Zink Ranch, we believe we have an inventory of fields and wells sufficient to achieve this goal. And with the technologies and expertise we can now apply through the leadership of our strategic partner, Dr David Kahn, and myself, I believe that the progress we have been making towards reaching a sustained positive cash flow continues apace."

Operational Overview:

The Company is currently active across its portfolio with the intention to raise production to between 300-500 bopd over the medium term.

Forest Hill Field (Mayan - 70% working interest ("WI") and 52.5% net revenue interest ("NRI"):

Initial two-day test of first well completed with excellent results and well pressure recorded. Production to be started within weeks and with stimulation measures, the Board expects the well to produce 50+ bopd gross once the well has stabilised. The expectations are that similar results will come from other well re-entries.

· Initial test results: First re-entry produced an average of 21 bopd over a two day period from the lower sub clarksville formation, while maintaining a high fluid level column of approximately 4,000 feet (') and approximate well head pressure of 1,600 pounds per square inch. These results indicate that production volumes can be materially increased by using enhancement technology, which Mayan intends to apply shortly.

· Starting continuous production: This is expected by the middle of November 2017 with two additional wells to be added by the end of the November. This constitutes work on three of the six initial wells and therefore Mayan has carried Longview Oil & Gas ("LOG") for approximately $70,000 in respect of this work.

· Increased production efficiency : Based upon historical data which has only been confirmed by the operations, the Company believes that these wells will produce sustainably in excess of 50 bopd each once reworked and stimulated with our proprietary chemical treatment program to cleanout long years of neglect, asphalt and scale deposition, the viscosity and surface handling issues. 

· Increasing production efficiency: Mayan intends to pull rods and tubing and service well equipment during November 2017 to allow for a more efficient pumping of the well.

Stockdale Field (Mayan 60% WI and 45% NRI):

Initial test work from the first well is highly encouraging. A Roke Neutron Quad Tool ("Roke") has identified additional payzones which the Company intend to test and exploit.

· Initial Test Results. Mayan continues to evaluate the results of its successful initial test of the Morris 1 well announced 19 October 2017, where 74 barrels of crude oil were produced from the Anacacho formation at an average of 4 barrels per hour during an 18-hour period over three days from a depth of approximately 4,900'.

· Production prospects: The significant reservoir pressure and high static fluid level of the Morris 1 well (110 meters/360' from surface) suggests that these rates can be improved significantly and maintained at a sustainable level, by using production enhancement tools.

· Potential New Payzones: Mayan has identified a number of additional zones not previously identified, following log test work with a Roke tool. These include a potential oil zone in the Austin Chalk (Anacacho) formation from 4,823'-27', a gas zone from 4,358'-66' in the Taylor formation and 3 thin, possible oil zones between 4,100'-50'. Mayan will perforate and test the (4,823'-27') Anacacho zone shortly.

Zink Ranch, (Mayan 50% WI and 37.5% NRI):

· Production increases: Zink Ranch presently produces 8 bopd from the field (4 net to Mayan). Mayan believes that this can be substantially increased by a work over programme and using enhancement technologies.

· Test Program start: The program is commencing this week and will test the Prue formation by way of wells originally completed into the Bartlesville formation. Results from the program are expected in 4 - 6 weeks.

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.com or contact the following:

Notes:

Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas energy Company focussed on the redevelopment and enhancement of its upstream oil and gas interests in Oklahoma and Texas.

Technical sign off

All of the technical information, including information in relation to reserves and resources that is contained in this announcement has been reviewed by, Mr John Ladd. Mr Ladd is a petroleum engineer who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves and has reviewed the release and consents to the inclusion of the technical information.

Technical Glossary

bopd

means barrels of oil per day. There are 42 gallons (approximately 159 litres) in one barrel of oil, which will contain approximately 5.8 million British Thermal Units.

EUR

Estimated ultimate recovery (EUR) is an approximation of the quantity of oil or gas that is potentially recoverable or has already been recovered from a reserve or well.

Workover 

The process of performing major maintenance or remedial treatments on an oil or gas well. In many cases, workover implies the removal and replacement of the production tubing string after the well has been killed and a workover rig has been placed on location. This operation saves considerable time and expense.