Mayan Energy Ltd, the oil and gas company, has provided a further update on its US onshore operations in Texas and Oklahoma. Since its last market announcement dated 15 April 2019, Mayan Energy Ltd has continued to work across its fields and strengthen the production base.
Below is a table of group production, incorporating production from Mayan’s Austin Field and Zink Ranch along with the recently acquired Fort Worth Field, for the month of May 2019. It shows gross mean average production of 131 boe/d and net mean average production of 93.8 boe/d for the month.
During May 2019, Mayan Energy Ltd sold 1300 bbls of oil at an average US$65.53 /bbl; the newly negotiated Austin Field sales contracts paid a US$4.20 /bbl premium to WTI pricing.
In conjunction with the six well rework project, Mayan Energy Ltd continues to optimise production whilst focusing on economic operations in the field. Once fully optimised, Mayan Energy Ltd is confident of achieving at least the gross stabilised production target level of 72 boe/d (as announced on 15 April 2019).
Operations have been hindered by an exceptional period of weather; however, Mayan Energy Ltd further has maintained a stable continuous production.
Further appraisal of the Neubauer-Stanush #1 well found down-hole debris material and the pump ceased in the wellbore. Mayan Energy Ltd has decided the potential financial cost in fishing the downhole equipment is an undesirable unknown at this time. It 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, Texas, and Mineral Wells, Texas.
On 1 April 2019, Mayan Energy Ltd assumed all operational responsibilities from the previous operator. On 24 May 2019, an 11 well rework programme commenced. Six of the scheduled rework wells are now back on pump. These wells have shown the expected increase in liquid volumes with improving oil:water ratios, Mayan Energy Ltd is encouraged by the associated gas.
For the month of May 2019, Zink Ranch produced 54 bbls of oil and 236 MCF of gas. 1 June 2019 the field produced 9 boe/d. Production will increase steadily through the month of June as the impact of the re-work programme flows through to production.
Fort Worth Field
Despite prolonged severe weather, the Fort Worth Field has maintained a robust production profile. During the month of May 2019, the field produced 67 bbls of oil and, 8481 MCF of gas (net to Mayan), being 49 boe/d to Mayan. Through the same period, Mayan Energy Ltd sold 166 bbls of oil at an average US$60.22 per barrel.
While the severe weather in the area has delayed the well rework programme, during the same period Mayan Energy Ltd continued its production enhancement schedule. May 2019 saw the first full month of well-by-well production monitoring following a refurbishment and recalibration of the field Barton Meters that replaces sales point volumes analysis with well specific monitoring.
Mayan Energy Ltd is currently working with its local well service providers to reschedule the rework programme at the earliest possible juncture.
Read the article online at: https://www.oilfieldtechnology.com/special-reports/10062019/mayan-energy-ltd-provides-update-on-its-us-onshore-operations-in-texas-and-oklahoma/