Mayan Energy provides development update for Stockdale field gas discovery in Texas

LONDON -- Mayan Energy has announced its plans for the development of the gas discovery at the Morris #1 well at Stockdale field, Wilson County, Texas. The Company has a 60% working interest (WI) and 45% net revenue interest (NRI) in Stockdale field.

The Escondido Sand formation, from 4,358 ft to 4,776 ft, was identified using the Company’s proprietary Quad Neutron Roke tool on the Morris #1 well. A total of 20 ft of net pay estimated to contain 3 Bcf of natural gas is considered to be recoverable. The Company intends to generate electricity on site using gas volumes from the Escondido Sand formation to power a generator that will then be able to tie-in with and sell power to the electric grid.

The Company has determined that the generation equipment necessary to convert the natural gas to electricity is available on a lease basis on terms favorable to the Company with a base monthly cost of approximately $14,000. The investment required to implement this plan is limited to approximately $50,000, including permitting; generating equipment; and the re-completion of the Morris #1 well in the Escondido Sand formation, including the co-mingling of production with the upper and lower Anacacho zones.

The Company anticipates surface work will commence in June 2018, following which the Company will arrange for delivery of the necessary generating equipment and coordinate with the electric company to tie-in the generator to the electric power lines. Once the Company knows when the generator and tie-in will be completed, it will schedule the workover rig to perform the downhole work necessary to initiate production and will update the market further as developments necessitate.