Mayan Energy production hampered by adverse weather

Mayan Energy production hampered by adverse weather

Oil and gas exploration and production company Mayan Energy Ltd (LON: MYN) announced that its production volumes had been weighed down by a period of adverse of weather conditions.

The Company said that its Texas assets had been limited during May, with gross mean average production of oil down to 131 barrels per day, and net mean average production down to 93.8 bpd during the month.

During what Mayan Energy described as ‘an exceptional period of weather’, its Austin field sold 1,300 barrels of oil at an average price of $65.53, during May.

Mayan Energy comments

In its update, the Company said,

“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.”

The update continued by stating that the Company’s Zink Ranch and Fort Worth prospects produced 54 barrels and 67 barrels of oil and 236 and 8,481 MCF of gas respectively.

On the update, Mayan Energy CEO Charlie Wood, commented,

“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.”

Trading update

After dipping and rallying modestly, Mayan Energy shares have returned to exactly the same price they were trading at when markets opened on Friday, at 0.12p a share 07/06/19 13:42 GMT.