15 Feb 2018 07:00
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas
15 February 2018
Mayan Energy Ltd ("Mayan" or "the Company")
Operations Update - Initial Flow Rate for Gilbreath #15
Mayan (AIM: MYN), the AIM listed oil and gas company, is delighted to announce that the Gilbreath #15 well at Forest Hill Field, Wood County, Texas ("Forest Hill") was added to production with 51 barrels of crude oil produced in the first 24 hours. In addition to the results of the Gilbreath #19 well and the Morris #1 well at the Stockdale Field, Wilson County, Texas ("Stockdale"), which continue to produce at rates consistent with their initial flow rates announced in the RNS dated 13 February 2018, the Company continues to make steady progress in the eight well workover programme underway at Forest Hill and total of nine wells to be worked over (including the Morris #1 at Stockdale) on its Texas assets.
Forest Hill Field, Wood County, Texas (Mayan 70% Working Interest / 52.5% Net Revenue Interest)
· 51 barrels of oil produced by Gilbreath #15 within initial 24 hours of operation
· Importantly, these are untreated barrels as the Company has yet to apply any of the proprietary production enhancement technologies at its disposal and therefore the Company believes initial production rates can be increased
· Mayan intends to produce Gilbreath#15 for several weeks to establish a production baseline before attempting to further stimulate the well
· The Gilbreath #48, the fourth of eight wells to be worked over at Forest Hill Field (and fifth of nine total wells overall) is now rigged up
· The Company is also pleased to announce that it has now received permits and approvals necessary to complete and start producing six of the eight wells in its Forest Hill workover programme with the last two expected in the next week
Eddie Gonzalez, Managing Director, said: "With 51 barrels produced at the Gilbreath #15 during the initial 24-hours, the Forest Hill Field workover programme continues to deliver. Now that we have received the necessary permits and approvals for six of the eight wells we are working over at Forest Hill Field, with the remaining two expected near term, we plan to complete the work programme in short order and in the process take a major step towards achieving our 300-500bopd production target.
"The Company is in a position financially to complete this programme with current resources and cash flow available. In addition, we are pleased that actual costs are running significantly less than the budgeted US$30,000 per well we planned to spend. I am very excited about the potential we expect to realise in the next 6-8 weeks as all of the wells are completed and brought online. Crude oil has always been the backbone of the Texas economy and it now forms the backbone of Mayan as well!"
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.