Mayan (AIM: MYN), the AIM listed oil and gas company, is pleased to provide an update on its proposed low-cost development programme at the 1,520 net acre Zink Ranch Field (‘Zink Ranch'), Osage County, Oklahoma in which the Company has a 100% working interest (‘WI') and 75% net revenue interest (‘NRI'). As announced on 15 May 2018, the multi-phase work programme, consisting of workover, new drill and pressure maintenance operations, is focused on increasing production and proving up substantial reserves at Zink Ranch that are believed by the Company to be economically recoverable.
Eddie Gonzalez, Managing Director, said: “Zink Ranch represents untapped value for Mayan. With the signing of this contract we have now taken the first tangible step towards unlocking what could become a significant asset for the Company. Together, with the success we are having at the Forest Hill and Stockdale Fields in Texas, we believe that Zink Ranch can make a substantial contribution towards achieving our production goal of 300 to 500 net barrels of oil per day. Furthermore, oil production from the Pennsylvanian Sands tends to be longer-lived than production elsewhere and as a result, the implied value of a barrel of oil in the ground from this horizon has historically realised a premium to other formations. We are therefore keen to commence this programme which, subject to positive results, could confirm our view that Zink Ranch is a high quality and valuable asset. As development milestones and nitrogen test results become available, Zink Ranch will generate much news flow in the coming weeks and months.
“I am further encouraged that seasoned oil field professionals are interested in receiving shares as payment for their services in lieu of cash. This serves as a testimony to the hard work the Board and our employees have done not only in restoring the reputation of the Company with both investors and industry partners but also in delivering on our strategy to build a highly cash flow generative oil and gas company.”
Issue of equity and Total Voting Rights (TVR)
Issue of Shares to Service provider
As per the terms of the agreement with the Contractor set out above, Mayan has issued 11,141,176 Ordinary Shares at a Price of £0.0085 in settlement of £94,700 for the initiation of the work-over programme at the Zink Ranch property (the 'Settlement Shares'). The Settlement Shares will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.
Application has been made and it is expected that Admission will become effective and dealings in the Settlement Shares will commence on or around 25 June 2018.
Share Capital and Total Voting Rights ("TVR")
Following the issue of the 11,141,176 Settlement Shares, Mayan's issued share capital consists of 1,234,077,106 Shares of no par value with voting rights. No Ordinary Shares are held in treasury at the date of this announcement and therefore following the Admission, the total number of Ordinary Shares in Mayan with voting right will be 1,234,077,106.
The above total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in the Company.