20 Apr 2018 07:00
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas
20 April 2018
Mayan Energy Ltd ("Mayan" or "the Company")
Operations Update - Stockdale Field
Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased to announce an update on its ongoing activities to significantly enhance production at the Morris #1 well ('the Well') at Stockdale Field, Wilson County, Texas in which the Company has a 60.0% working interest (WI) and 45.0% net revenue interest (NRI). This forms part of a multi-well low cost workover programme occurring across Mayan's portfolio of Texan assets to increase net production to 300-500bopd in the medium term.
As part of its strategy to increase production at the Morris#1 well, on 13 February 2018 the Company announced its plans to acidise and commingle the Upper and Lower Anacacho formations at the Morris#1 well, which has now been completed. Furthermore, as announced on 4 April 2018, the Morris #1 well was shut whilst work on the water injection well was completed, which has now taken place (prior to this it was producing at a rate of 24-26 barrels of oil per day from the Upper Anacacho). Prior to acidising and commingling the Upper and Lower Anacacho, there was a spike in gas pressure in the Well (kick), which resulted in the recovery of 92 barrels of crude oil over a period of 6 hours from the upper Anacacho.
Acidisation and commingling of the Lower and Upper Anacacho zones was completed on Wednesday, 18 April 2018 and whilst work on the salt water injection well has also now been completed, the Well remains shut-in to allow it to pressurise ahead of a planned swab-test to determine appropriate downhole pump size for optimal production performance. Following this, the appropriate downhole pump will be placed on the Well. The Company will update the market once the production rate from the Morris #1 has stabilised.
Eddie Gonzalez, Managing Director, said: "The solid performance of the Upper Anacacho prior to acidisation and commingling reaffirms our initial test results from the Morris #1. The acidisation and commingling operations to combine the production potential of the Lower Anacacho with the Upper went smoothly and we are eagerly anticipating results from our swab test and further production as we initiate continuous production with the downhole pump we are installing.
"I expect the Morris #1 to contribute materially to Mayan's daily production and cash flow and with WTI Crude Oil at better than US$68 per barrel the robust base of production we are continuing to build should perform exceptionally for the company over the next few months. I look forward to updating the market shortly on the exciting developments with the Morris #1."
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 |
Nick Bealer | Cornhill Capital Limited | +44 20 7710 9612 |
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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 Stephen Brock. Mr Brock is a production engineer and member of the Society of Petroleum Engineers who is a suitably qualified person with over 20 years' experience in assessing hydrocarbon reserves and has reviewed the release and consents to the inclusion of the technical information.