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Asphalt Ridge Plant Update

Fri, 23rd Feb 2018 07:00

RNS Number : 7187F
Mayan Energy Limited
23 February 2018

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

23 February 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 the update from TSX listed Petroteq Energy Inc ('Petroteq') (TSXVE: PQE OTC: PQEFF) that completion of the main phase of construction work to expand the capacity of the heavy oil extraction and processing facility at the Asphalt Ridge Project ('Asphalt Ridge') in Utah to 1,000 bpd (barrels per day) has now been completed. Mayan has 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.

Asphalt Ridge, which is a heavy oil sands deposit with an 87 Million Stock Tank Barrels ("STB") contingent resource in place, is undergoing a multi-phase development to produce 5,000+ bopd by 2019. The work completed to date at the site is in line with the strategy to commence production at an initial rate of 1,000bopd in Q1 2018. As part of the main construction phase, the following work has recently been completed:

· The main structure of the plant has been reassembled

· Motor Control Center (MCC) installed to accommodate wiring for motors, pumps and mechanical equipment as part of the future expansion of the plant to the 5,000+bopd target

· Installation of the main mixing tank, second mixing tank and fin fan cooler

· A new superior hot oil heater has replaced the prior steam heater

· Multiple new pumps have been fitted to move the environmentally safe solvent and oil more efficiently

· Earth berms have been put in place to ensure the recovery of oil in a manner that has minimal environmental impact

Mayan CEO Eddie Gonzalez commented, "We are pleased to note that the 1,000bopd plant at Asphalt Ridge remains on schedule to be commissioned later this quarter. At current oil prices, production at Asphalt Ridge is estimated to generate netbacks of c.US$35+ per barrel net of royalties, production and transportation expenses. With this in mind, I look forward to providing further updates on progress at Asphalt Ridge, as well as on our operations in Texas where we are homing in on our medium-term target to increase net production to 300-500bopd."

**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 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

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.

This information is provided by RNS
The company news service from the London Stock Exchange
END
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