LONDON (Alliance News) – Mayan Energy Ltd said on Tuesday it will by a 60% working interest in a lease for a producing oil well in the US state of Texas for up to USD260,000.
The AIM-listed company said the acquisition of a 60% stake in a 105.7 gross acre lease in Wilson County includes a 45% net revenue interest in one producing well which produces about 50 gross barrels of oil per day from the Anacacho formation.
Myan said the acquisition is an opportunity to grow its acreage position in Wilson County and it is part of a broader strategy to target opportunities to recomplete existing well bores originally drilled to the Austin Chalk formation in the shallower Anacacho formation.
The company said it has identified 10 low cost Anacacho re-entry opportunities that it is currently evaluating the potential to expand its footprint in Wilson County.
Mayan will pay USD60,000 in cash for the acquisition, of which USD10,000 has already been paid, with the remainder due on August 15.
As part of the deal Mayan also agreed to carry the seller on certain development expenses up to USD200,000 net to the seller’s retained interest within 180 days.
“This acquisition in Texas together with the farm out and work program at Zink ranch and Mathis in Oklahoma mark the completion of a shift in the strategy of the company toward a diversified production and cash flow focus,” Mayan Chief Executive Eddie Gonzalez said.
“The immediate addition of approximately net 30 barrels of production per day to our portfolio firms up the cash flow profile of the company allowing us to focus our capital resources on growth in production in these low risk, minimally capital intensive projects which will drive steady production and cash flow growth going forward.”
Shares in Mayan were up 4% to 0.26 pence on Tuesday.
By Maryam Cockar; [email protected]; @MaryamCockar
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