5 Mar 2018 15:00
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil and Gas
5 March 2018
Mayan Energy Ltd ('Mayan' or 'the Company')
Update on Heavy Oil Sands Project, Utah
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to note today's update from TSX listed Petroteq Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF) announcing the successful completion of testing of all the major process systems at the heavy oil extraction facility in Asphalt Ridge, Utah. In addition, Petroteq has initiated test runs of the utility system ahead of the commencement of commercial production. Mayan holds a 17.6% interest in Deloro Energy LLC ('Deloro') which recently completed the first tranche of its US$10million acquisition of a 49% interest in Asphalt Ridge - see RNS dated 15 January 2018.
· Petroteq has completed testing of the following process systems:
o Oil sands ore-raw feed material-preparation systems
o Oil sands ore pre-treatment and delivery system
o Extraction of oil from oil sands
o Solvent capture and recirculation system
o Solid-liquid phase separation systems
o Heavy oil recovery and clean solids removal processes
· Pre-production testing of the utility system is in its final stages
· Petroteq has received all requisite permissions from the relevant Utah agencies, including the Department of Environmental Quality (DEQ), needed to build and operate the facility in production mode
· Notably, Petroteq has received an Air Exemption Permit based on its patented closed-loop, zero-emission technology and a Ground Water Discharge Permit certifying that the construction and operation of the plant have no deleterious impact on the quality of the surrounding ground water
Mayan CEO Eddie Gonzalez commented, "We are pleased with this latest update from the Asphalt Ridge project as it continues to progress at a good pace. I look forward to providing further updates as Asphalt Ridge draws closer to entering commercial production later this quarter, together with progress at our ongoing multi-well work programme in Texas."
**ENDS**
For further information visit www.Mayan energy.com or contact the following:
Eddie Gonzalez | Mayan Energy Ltd | + 1 469 394 2008 |
Charlie Wood | Mayan Energy Ltd | +44 20 7236 1177 |
Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
James Biddle | Beaumont Cornish Ltd | +44 20 7628 3396 |
Nick Bealer | Cornhill Capital Limited | + 44 020 3700 2500 |
Frank Buhagiar | St Brides Partners Limited | +44 20 7236 1177 |
Gaby Jenner | St Brides Partners Limited | +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.
About Petroteq Energy:
Petroteq Energy Inc. is a Canadian-registered holding company, publicly trading on the TSX Venture Exchange (Symbol: PQE) and the OTCQX trading platform (Symbol: PQEFF). Its offices are located in Toronto, Ontario, Canada, Los Angeles, California and its initial oil sands processing plant is in Vernal, Utah.
Petroteq is engaged in the development and implementation of its proprietary environmentally friendly heavy oil processing and extraction technologies. The proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. The Company is currently focused on developing its oil sands resources and expanding production capacity at its Facility at Asphalt Ridge, Utah. The Company also (i) owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc., (ii) has a joint venture with Recruiter.com and Oilprice.com that provides internet based job placement and career services to the increasingly skilled and specialized energy sector, and (iii) is developing through PetroBloq an advanced blockchain solution for the energy industry, with a goal of optimizing petrochemical industry workflow processes.
About Deloro
Deloro private LLC which has entered into a joint venture arrangement with Petroteq under which Deloro will invest in a project that:
· holds the right to explore, mine, extract, product and sell or dispose of oil sands, bitumen, asphalt and other hydrocarbon substances and minerals in and within certain lands and properties situated in Uintah County, State of Utah, in the United States ("the Asphalt Ridge project") that comprises: plant & equipment; 87 MMSTB's of contingent reserves; and intellectual property relating to the processing and extraction technology and land title; and
· subject to the investment of an aggregate amount in stages of US$10m by Deloro, it will earn up to a 49% interest in the Asphalt Ridge project in the form of convertible loan notes, payable as follows:
o Tranche 1 of US$2.5million has now been completed; Deloro is entitled to receive an economic royalty from TMC Capital and PQE Oil in the amount of 25%,
o Tranche 2 of US$3.5million due once plant for more than 30 days is operating at greater than 1,000 bopd, accordingly Deloro will receive a further economic royalty from TMC Capital and PQE Oil in the amount of 10%; and
o Tranche 3 of US$3.95million due on or before by 1 June 2018.
Petroteq and Deloro will enter into a Joint Operating Agreement in due course and Petroteq will retain operatorship of the Asphalt Ridge project.