Fri, 28th Oct 2016 10:29
Mayan Energy Limited - Placing, Corporate Update and TVR
London, October 28
28 October 2016
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil & Gas
Mayan Energy Ltd (“Mayan” or “the Company”) Placing, Corporate Update and TVR
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to announce that it has completed a placing of 7,246,376,812 new ordinary shares of no par value each (“the Ordinary Shares”) in the capital of the Company at a placing price of 0.01725 pence (the “Placing Price”) per Ordinary Share (the “Placing Shares”) to raise gross proceeds of £1,250,000 (the “Placing”).
Investment into Four Re-entry Wells at Shoats.
- The funds raised will be used to start oil and gas production from four re-entry wells, including LM 19 and LM 13, as well as RC1 and RC2
- The impact of these four additional wells coming on stream (based on initial flow rates as previously announced) is expected to significantly increase oil and gas production to Mayan
- Mayan has 70.00% working interest (“WI”) and 52.78% net revenue interest (“NRI”) in RC 1, RC2 and LM 13, and a 20.00% WI and 15.08% NRI in LM 19
- Funds will also be used to meet immediate financing needs and for general working capital purposes
Update on Shoats Creek Production
- The delivery of the down-hole pump for the LM 20 well-referred to in the RNS of 14 October is now due this week, and the Company will report on sustainable flow rates after the first week of production
- Mayan has a 70.00% WI and 52.78% NRI in LM14, which will be the first to be brought on line
Commenting on the above, Mayan’s CEO Eddie Gonzalez said:
“With this raise under our belt, we can move rapidly towards creating a five to six well operation. So, in just three months since joining Mayan in September 2016, we will have moved from being an a one well exploration and development play, to a five to six well producer and, with the costs cuts the Company has introduced, we are poised to generate sustainable cash flow to cover our operational needs. As well as increasing our production, an additional benefit of this investment is that we will also reduce our operational risks in terms of our overall sensitivity to the performance of any given well.
“We now have the fire power to really push ahead, and more than ever, I am focussed on our game plan. The new wells represent a very achievable milestone, following which we will really be on the way to exploiting the considerable potential to add value I see in Shoats, which include additional lease acquisition, as well as re-entry and new drill opportunities. I am also looking forward to reporting on progress in achieving our plans to monetise some of our non-core assets, and then our plans for Mexico. The many opportunities associated with that country’s energy reforms, still remains central to our long term vision for Mayan.”
Placing Details and Total Voting Rights (“TVR”)
The Placing is conditional on Admission and application will be made for the Placing Shares, which will rank pari passu with the existing Ordinary Shares, to be admitted to trading on AIM (the “Admission”). It is expected that Admission will become effective and dealings in the Placing Shares will commence on or around 4 November 2016.
Following the issue of the 7,246,376,812 Placing Shares, the Company’s issued share capital will consist of 21,144,630,415 Ordinary Shares with voting rights. No Ordinary Shares are held in treasury at the date of this announcement and therefore following the Admission, the total number of Ordinary Shares in the Company with voting right will be 21,144,630,415.
The above total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in the Company.
As part of the Placing, a placing commitment of £750,000 was received from PrimaryBid, the crowd funding platform for AIM listed companies. In addition, in connection with the Placing the Company has agreed to award Cornhill Capital Limited, the Company’s Broker and Placing Agent (‘Cornhill’) and a further direct subscriber, warrants over 1,263,285,023 Ordinary Shares valid for two years from the day of the Placing, which shall give Cornhill and the direct subscriber the right to acquire 1,263,285,023 Ordinary Shares of the Company at the Placing Price.
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|
|Elliot Hance||Beaufort Securities Ltd||+44 20 7382 8300|
|Nick Bealer||Cornhill Capital Limited||+44 20 7710 9612|
|Elisabeth Cowell||St Brides Partners Limited||+44 20 7236 1177|
- Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas energy company with a vision of building a midstream service (oil and gas waste management) and downstream operations business in Mexico ,exploiting the opportunities arising from the liberalisation of that country’s energy sector. This vision will complement the Company’s present operations which are focussed on the redevelopment and enhancement of its upstream oil and gas interests in Oklahoma and Louisiana.
- The Market Abuse Regulation ("MAR") became effective from 3 July 2016. Market soundings, as defined in MAR, were taken in respect of the Fundraise with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement and has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.
The technical information that is contained in this announcement has been reviewed by Mr. Kevin Green, a Consultant to the Company and a Petroleum Geologist who is a suitably qualified person with over 30 years' experience in assessing hydrocarbon reserves and who has consented to the inclusion of the technical information.