Mayan Energy Ltd (London AIM: MYN), the AIM listed oil and gas company, is pleased to provide a further update on its US onshore operations in Texas and Oklahoma. Since the last market announcement dated 15 April 2019, the Company has continued to work across its fields and strengthen the production base.
Below is a table of group production, incorporating production from Mayan's Austin Field and Zink Ranch along with the recently acquired Fort Worth Field, for the month of May 2019. It shows gross mean average production of 131 Boepd and net mean average production of 93.8 Boepd for the month.
PRODUCTION SUMMARY - MAY 2019
MEAN AV. PRODUCTION
NET MEAN AV.
During the month of May 2019, the Company sold 1,300 barrels of oil at an average US$65.53 per barrel; the newly negotiated Austin Field sales contracts paid a US$4.20 per barrel premium to WTI pricing.
In conjunction with the six well rework project, the Company continues to optimise production whilst focussing on economic operations in the field. Once fully optimised, the Company is confident of achieving at least the gross stabilised production target level of 72 Bopd (as announced on 15 April 2019).
Operations have been hindered by an exceptional period of weather; however, the Company further proves its in-field capabilities in maintaining stable continuous production despite the challenges.
Further appraisal of the Neubauer-Stanush #1 well found down-hole debris material and the pump ceased in the wellbore. The Company has decided the potential financial cost in fishing the downhole equipment is an undesirable unknown at this time. The Company will further assess options in the coming months.
The field operating team has successfully completed the comprehensive 'service, repair and replace' programme, consolidated in-field employee numbers and continues to benefit from input by its experienced management team in both Borger, TX and Mineral Wells, TX.
On 1 April 2019, the Company assumed all operational responsibilities from the previous operator. On 24 May 2019, an 11 well rework programme commenced. Six of the scheduled rework wells are now back on pump. These wells have shown the expected increase in liquid volumes with improving oil:water ratios, the Company is encouraged by the associated gas.
For the month of May 2019, Zink Ranch produced 54 barrels of oil and 236 MCF of gas. 1 June 2019 the field produced 9 Boepd. Production will increase steadily through the month of June as the impact of the re-work programme flows through to production.
Fort Worth Field
Despite prolonged severe weather, the Fort Worth Field has maintained a robust production profile. During the month of May 2019, the field produced 67 barrels of oil and, 8,481 MCF of gas (net to Mayan), being 49 Boepd to Mayan. Through the same period, the Company sold 166 barrels of oil at an average US$60.22 per barrel.
While the severe weather in the area has delayed the well rework programme, during the same period the Company continued its production enhancement schedule. May 2019 saw the first full month of well-by-well production monitoring following a refurbishment and recalibration of the field Barton Meters that replaces sales point volumes analysis with well specific monitoring.
The Company is currently working with its local well service providers to reschedule the rework programme at the earliest possible juncture.
Charlie Wood, Mayan CEO said; "This Operational Update demonstrates the rationale to acquire Attis' operational resources and capabilities. Through a challenging and busy period, the Company has demonstrated both its ability to react and manage planned & unplanned operational situations.
"Further, the Company has engaged a Tulsa, OK based geologist company with extensive experience of our operational regions. The work scope will deliver an appraisal of the existing acreage for development opportunities including well re-entry, new drill and farm-out data.
"The Company sees June 2019 as a transformational opportunity to deliver continuing production enhancement and development planning."