Block Energy P. Regulatory News (BLOE)

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

 11 June 2018

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

Admission to AIM of Investee Company Block Energy Plc

Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased to note that ordinary shares in Block Energy Plc ("Block Energy") (AIM: BLOE), the exploration and production company focused on the Republic of Georgia in which Mayan now holds a 3.29% interest, commenced trading on AIM this morning at 08:00 ("the Admission").

In tandem with the Admission, Block Energy has raised £5 million via an oversubscribed placing and subscription of 125 million new ordinary shares at a placing price of 4p each ("Placing Price"), implying a market capitalisation of circa £10.3 million at the time of the Admission. Based on the implied market capitalisation, the 8,510,341 ordinary shares in Block Energy that Mayan holds are valued at £340,414, which compares favourably to the original £300,000 Mayan invested in Block Energy in June 2017. As detailed in the Company's announcement of 27 June 2017, Mayan's £300,000 investment in Block Energy was structured as follows:

· £90,000 equity investment via a placing of new shares at £0.0085 per Block Energy Share; and

· £210,000 via a Secured Convertible Loan Note. 10% flat coupon with conversion to equity at a 10% discount to any price at which Block Energy's shares are listed or admitted to trading on any stock exchange other than NEX.

In line with the above, the £210,000 Secured Convertible Loan Note has been converted into 6,392,694 ordinary shares in Block Energy, increasing Mayan's total holding to 8,510,341 ordinary shares, which represents 3.29% of the entire issued share capital of Block Energy.

Block Energy has a portfolio of oil and gas licences in a proven region of Georgia with existing scalable production; 2P net oil reserves that have been assigned an NPV10 of US$39.3 million; and substantial potential from 608 Bcf 2C gross unrisked contingent gas resources that lie on the same play being tested by leading oil and gas services provider Schlumberger on an adjacent licence. Following the Admission, Block Energy is funded to recomplete/reactivate ~10 wells and side track wells in line with its strategy to initially increase its existing oil production to over 900bopd from 15bopd and test the 608 BCF (2C) gas discoveries within the next 18 -24 months.

Eddie Gonzalez, Mayan's Managing Director, said, "We congratulate the team at Block Energy on the successful Admission to AIM and fundraise that has resulted in leading fund managers Miton Group and Amati joining its shareholder register. We view this as third-party validation of our early stage investment in Block Energy. From the outset, we recognised the significant scalability and potential of Block Energy's growing portfolio and we look forward to closely following the team's progress, as they embark on their low cost / low risk development programme.

"Elsewhere in our portfolio, work continues across our US onshore assets including the Stockdale Field in Texas where we recently announced our strategy to monetise a significant gas discovery and Zink Ranch in Oklahoma where an independent review has identified up to 3.5 million barrels of recoverable oil that may be economically developed through a multi-phase, low cost development programme. Together with progress at the Asphalt Ridge Project in Utah, the next few months will not be short of high impact news flow and I look forward to providing further updates on our progress."

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:

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.