Mayan Energy acquires three more Texas wells

Oil and gas exploration and production company Mayan Energy announced on Friday that had it acquired an additional three wells adjacent to its Forest Hill Lease in Wood County Texas.

At its Zink Ranch interest in Oklahoma, Mayan was suffering from a "longer than anticipated" recognition by Federal Osage tribal authorities regarding the operatorship of the ranch.

While the administrative process was underway, the company had been forced to postpone its previously announced work programme until the New Year.

A workover rig had been sourced for the new wells, acquired by existing cash resources, and would be on site the week of 25 December to immediately commence production.

Mayan noted that the approval process, controlled by the Railroad Commission, regarding the transfer of operations on six of its previously acquired Forest Hill wells was expected to be completed "shortly".

Regarding its Kelly Lynne Field in Stockdale, Texas, Mayan announced that an agreement had been reached to use a permitted water injection well to facilitate enhanced production from the site's Morris #1 well and allow commingling of production from the upper and lower Anacacho formation,

The company anticipated production at Morris #1 to be in the 30-50 barrels of oil equivalent per day.

Eddie Gonzalez, managing director of Mayan, said: "This has been a year of transition and we believe we have built a strong platform from which to execute our growth strategy. We have demonstrated our ability to identify undervalued projects that can be optimised and enhanced, as shown by the sales from Stockdale."

"Once we have finalised permits with the Railroad Commission we will immediately implement the workover programmes which will further transform our production profile and make significant strides to meeting our initial production target of 500 bopd," he added.

As of 1100 GMT, shares had slipped 7.26% to 0.543p.