US firm Mayan Energy has entered into a $2million farm out of its 100% owned and operated Zink Ranch and Mathis leases in Osage County, Oklahoma.
The agreement with Longview Oil & Gas will see Mayan take $50,000 in cash and a 50% carried interest.
The work will include one new drill well on each of the Zink Ranch and Mathis leases and five workovers of wells at the Zink Ranch lease;
The Mathis new well will be a 3500′ vertical drill to target the Mississippian formation with an estimated cost of $1,300,000.
The Zink Ranch new well will be an 1800-2000′ drill, to target and fracture multiple Pennsylvanian sands with an estimated cost of US$ 350,000.
The five Zink Ranch workovers are intended to generate production by fracturing existing tight formations within existing wells to unlock their potential, with an estimated total cost of US$ 300,000;
Eddie Gonzalez, Mayan chief executive said: “This is an excellent transaction that unlocks value latent within Mayan’s portfolio.
“We have been able to do this as a result of a number of factors, including the resolution of the regulatory and legal challenges that were facing the oil and gas operators in Osage County, Oklahoma that have now largely been resolved; our restructuring of our Oklahoma operations and now, finding an investor who was attracted by the prospects offered by our Oklahoma assets.
“The transaction creates several potential sources of near to medium term upside for production, revenues and our share price.
“And we now look forward to reporting to shareholders in due course on the development of the program as it rolls out.
“Indeed, if as we hope, this program works out, our intention will be to accelerate the development of our Oklahoma assets; as we believe that they have the potential to underpin the turnaround of Mayan and will prove to be the foundation for the plans and deals we are already working on.”
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