Mayan Energy provides operational update regarding Anacacho, Forest Hill fields

12/22/2017

LONDON -- Mayan, the AIM listed oil and gas company, is pleased to announce additional progress in its development program at Kelly Lynne (Anacacho) field at Stockdale, Wilson County, Texas, in which the Company has a 60% working interest (WI) and 45% net revenue interest (NRI) and Forest Hill field, Wood County, Texas, in which the Company has a 70% WI and 52.5% NRI.

Forest Hill field, Wood County, Texas:

  • Acquisition of additional three wells adjacent to the Forest Hill lease agreed in principle – terms being finalized and anticipated to be on the same basis as the Forest Hill lease; to be funded from existing cash reserves
  • A workover rig has been sourced and will be on site in the week of Dec. 25 to immediately commence work to bring the three new wells into production - average workover takes four days
  • The approvals process, controlled by the Railroad Commission (RRC), for the transfer of operations on six Forest Hill wells acquired, is expected to be completed shortly.  Once approved, five wells will be worked over utilizing the contracted rig, which is expected to commence in early 2018
  • The Gilbreath #19 well produced at an average rate of 43 bopd as announced on Nov. 14.  This well is ready for immediate production once RRC approval is granted
  • On completion of the above acquisition and permitting, the Company will have nine wells which, in tandem with its operating partner, will seek to produce and workover during the latter part of December and early 2018

Kelly Lynne (Anacaho) field (at Stockdale), Wilson County, Texas:

  • Further to the announcement of Nov. 8 2017, an agreement has been reached to use a permitted water injection well on a 93.07-acre land tract contiguous and offsetting the Morris lease (Morris #1 well).  The Company intends to lay a 1,500’ water disposal line from its productive Morris #1 well to the injection well on this adjacent tract to dispose of the water produced from Morris.  It is envisaged that additional wells on the tract may be converted to water injection wells as needed.  The addition of a water injection well will facilitate enhanced production from the Morris #1 well and allow commingling of production from the Upper and Lower Anacacho formation
  • The Company has engaged a land and lease acquisition specialist (landman) to acquire additional leases and wells for workover and/or re-completion in the area around the Morris #1 well.  The Directors believe the team can replicate the work being conducted to raise production on its existing properties and increase the Company’s portfolio size and production
  • The Company expects that production from the Morris #1 well will be in the 35-50 bopd range
  • The first shipment (load) of oil totaling 167.5 bbl was sold from the Stockdale well and a second shipment (load) will be picked up shortly

Zink Ranch field, Osage County, Okla.

  • Due to a longer than anticipated process for assumption of and recognition by Federal and Osage tribal authorities of operatorship status at Zink Ranch, the work program announced Oct. 31, 2017 has been postponed.  The administrative process is underway, and the Company expects to announce its plans with respect to initiation of Zink Ranch development in the New Year

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