AOGL.L Regulatory News (AOGL)

9 May 2017

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

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

Operational Update Shoats Creek ("Shoats") - Progress on Lutcher Moore ("LM") 13, Progress in Debt Restructuring

Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to announce that encouraging progress has been made in connection with its LM 13 Shallow-Well ("LM13") program and this follows on from earlier announcements in February and March 2017 in connection with this well. At the same time, the Company is pleased to announce that it has concluded negotiations with a major creditor settling its obligations at a considerable discount.

Shoats Creek Operations

Last week, the 2,900 foot formation, one of three formations currently being targeted by Mayan on the LM13, was perforated and swabbed for the first time with preliminary indications of the presence of oil, natural gas and water coming from a three foot thick sand formation. This supports the results indicated by earlier Roke Quad Neutron Log ("Roke") analysis, as reported on 21 February 2017. 

At the time it was expected that results - a determination as to whether the 2,900 foot formation might prove to be commercial viable -would be known quickly. However, late last week, weather conditions - which have proven to be particularly inclement this year- deteriorated once again, such that the field was flooded to a level that it was no longer possible to gain access to it. This delayed work for several days. 

The site is once again now accessible, and a determination as to whether the 2,900 foot formation might prove to be commercial viable is now expected shortly. 

Weather conditions aside, the next stage of Mayan's work on LM13, was originally planned to be a perforation at the 2,600 foot level, on the basis that the Roke detected anomalies at that level- with the thought that it might be consistent with known oil extraction at this level in nearby fields. However, having further analysed the Roke logs, the Company is now of the view that it will be more cost effective to revise its plans and to perforate at the 710 foot level, where the Roke logs indicate that there is a potential entrapment zone ten feet thick. This would still leave the 2,600 foot formation to be investigated at a later date, either via LM 13 or by way of other wells at Shoats. Results from the work on the 710 foot level will take 3 to 4 working days post perforation to come through.

Mayan has a 50.00% WI and 37.7% net revenue interest ("NRI") in the LM 13 Shallow Well. 

Debt Restructuring Initiatives

The Company continues to work on reducing its historic levels of debt and has recently concluded negotiations with one of its largest creditors settling with them for 21 cents on the dollar, lightening its debt load by close to USD 190,000 as a result. 

Commenting on the above, Mayan's CEO Eddie Gonzalez said: "Since coming on board my focus has been to turn Mayan's operations around, and getting Shoats working has been a key element of that strategy. Weather aside, I am now beginning to feel that our persistence and the tenacity of our shareholders will be rewarded. 

What I am seeing is that the output from the Roke Log work, is increasingly looking like it is "for real". The Roke logs indicated that the zone at 2,900 foot was the weakest of three shallow zones, with the strongest indicated at 710 foot. Our plan is to now perforate at that 710 foot level and see what things look like there. Once we have the test results back, we will be reporting on them and look forward to doing that as soon as possible. I should stress however, that it is too early to start waving flags, as there is more work to be done (mother-nature willing) and, as I have said before, even if it is "all lights go", completing the LM 13 Shallow well will require investment to install necessary surface equipment and so will take a few months' more time.

As previously mentioned, subject to results from the LM13-Shallow-Well, we will then be reviewing our plans for the whole of Shoats and will report on them as soon as that exercise is finished. At the same time, I am also pleased that we have been able to conclude on satisfactory terms negotiations with a major creditor and as with the Libby Tinker deals announced recently, I continue to also work on the liability side of Mayan's balance sheet, with the intention of improving the value of the company for the benefit of shareholders."

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").

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For further information visit www.Mayan energy.com or contact the following:

Notes:

Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas energy company; whose present operations which are focussed on the redevelopment and enhancement of its upstream oil and gas interests in Oklahoma and Louisiana.