Mayan Energy completed a tie in of four wells to its newly completed production facility at Forest Hill Field, Tx, and installed a workover rig at the Kelly Lynne and Stockdale Fields, both in Texas.
It successfully installed 2 heated oil storage tanks with a total oil storage capacity of 510 barrels and one water storage tank with 300 barrels water capacity, and has a site prepared to facilitate rapid expansion of storage capacity as required. The site is now able to double capacity as additional wells are brought online.
Mayan said on Wednesday that its Forest Hill Field produced a combined 187 gross barrels of oil in the initial 24-hour period a week before. It can now produce all of its wells simultaneously and has accordingly initiated commercial operations. However, it noted that the production rate achieved was better than expected, and this will naturally decline as expected of oil and gas wells.
The company is currently evaluating additional wells at Forest Hill that, subject to agreement with the vendors of these additional wells, will initiate Phase 2 of its work program with the intention of identifying 20-30 additional workover candidates and selecting 8-12 for its Phase 2 work program to commence in Q2 2018. Additional work is planned to bring on an additional three wells at Forest Hill Field in the coming weeks once current works are completed at the Stockdale Field.
At the Stockdale Field, the company was forced to temporarily stop operations at its Morris #1 well until completion of its salt water injection well as the cost of trucking water had proven prohibitive to initiating commercial production operations. The initiation of operations on the injection well will allow for continuous commercial production and substantially reduce operating costs avoiding expensive trucking of produced water volumes to commercial disposal facilities.
Eddie Gonzalez, Managing Director, said: “While the last few months have seen a larger than expected number of lost work days due to unanticipated levels of precipitation, we used the time well completing upgraded production facilities at Forest Hill Field to support the aggressive development drive we are pushing through in Q2. The solid production we announce today is an important milestone for Mayan, representing the first sustainable, diversified, internally generated cash flow base the Company has had. The stability and financial flexibility resulting from having a significant volume of daily production will facilitate continued development of our assets with additional wells and production to be added at Forest Hill and Stockdale in coming weeks.”
For more information, visit: www.mayanenergy.co.uk
9th Apr 2018