Asphalt Ridge Project Update
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to provide an update on the Asphalt Ridge Project (‘Asphalt Ridge’), a heavy oil sands deposit in Utah, USA, which has an 87 Million Stock Tank Barrels (“STB”) contingent resource in place. Asphalt Ridge is being developed by TSX listed Petroteq Energy Inc (‘Petroteq’) (TSXVE: PQE OTC: PQEFF). Mayan has a 17.6% interest in Deloro Energy LLC (‘Deloro’) which recently completed the first tranche of its US$10million acquisition for a 49% interest in Asphalt Ridge – see RNS dated 15 January 2018.
As part of a phased development plan at Asphalt Ridge to produce 5,000+ bopd by 2019 with an initial 1,000 bopd targeted for Q1 2018, a heavy oil extraction and processing facility is currently being assembled at the site. Petroteq has notified the Company that many aspects of the assembly are progressing ahead of schedule. To date the following work has been completed at the site:
· Reassembly of the metal support structure for the extraction equipment
· Installation of extraction equipment including augurs, the first mix tank and the motor control centre
o The second mix tank is scheduled to be installed this week.
· The first two oil storage tanks have been installed for what will be a facility of 4,000 to 5,000 barrels of capacity
· The oil heater is currently being assembled for installation
Pictures showing progress made at Asphalt Ridge are available to view in the Deloro section of the Company’s website (www.mayanenergy.co.uk). The images selected showcase the completion of the reassembly of the metal support structure for the extraction equipment and the installation of oil storage tanks.
Mayan CEO Eddie Gonzalez commented, “This update and our recent visit to the site confirm the construction phase of the Asphalt Ridge Project is progressing in a timely manner and that the 1,000 bopd plant remains on course to be commissioned in Q1 2018. With netbacks, specifically oil sales net of royalties, production and transportation expenses, estimated at US$35+ per barrel at current oil prices, Asphalt Ridge and the interest Mayan has via its Deloro investment continues to build in value. Together with the progress we are making in increasing our net production in Texas to 300-500bopd, we remain positive on the Company’s future prospects, and we intend to use this as a platform with which to continue to grow the Company and in the process generate value for our shareholders.”
For further information visit www.Mayan energy.com
Mayan Energy Limited is an AIM listed (London Stock Exchange) North American based energy Company. The Company is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow leveraging commercially available technologies and projects that are shallow, low risk with low levels of capex and infrastructure already in place. It also remains interested in creating shareholder value by strategic investments in similar projects with high cash generative potential and by forming beneficial development partnerships that enable the use of pioneering and leading extraction technologies. The Company is currently primarily focussed on building out production at its Stockdale and Forest Hill oil fields in Texas.
About Petroteq Energy:
Petroteq Energy Inc. is a Canadian-registered holding company, publicly trading on the TSX Venture Exchange (Symbol: PQE) and the OTCQX trading platform (Symbol: PQEFF). Its offices are located in Toronto, Ontario, Canada, Los Angeles, California and its initial oil sands processing plant is in Vernal, Utah.
Petroteq is engaged in the development and implementation of its proprietary environmentally friendly heavy oil processing and extraction technologies. The proprietary process produces zero greenhouse gas, zero waste and requires no high temperatures. The Company is currently focused on developing its oil sands resources and expanding production capacity at its Facility at Asphalt Ridge, Utah. The Company also (i) owns a minority stake in an exploration and production play located in southwest Texas held by Accord GR Energy Inc., (ii) has a joint venture with Recruiter.com and Oilprice.com that provides internet based job placement and career services to the increasingly skilled and specialized energy sector, and (iii) is developing through PetroBloq an advanced blockchain solution for the energy industry, with a goal of optimizing petrochemical industry workflow processes.
Deloro private LLC which has entered into a joint venture arrangement with Petroteq under which Deloro will invest in a project that:
· holds the right to explore, mine, extract, product and sell or dispose of oil sands, bitumen, asphalt and other hydrocarbon substances and minerals in and within certain lands and properties situated in Uintah County, State of Utah, in the United States (“the Asphalt Ridge project”) that comprises: plant & equipment; 87 MMSTB’s of contingent reserves; and intellectual property relating to the processing and extraction technology and land title; and
· subject to the investment of an aggregate amount in stages of US$10m by Deloro, it will earn up to a 49% interest in the Asphalt Ridge project in the form of convertible loan notes, payable as follows:
o Tranche 1 of US$2.5million has now been completed and is the subject of this RNS; Deloro is entitled to receive an economic royalty from TMC Capital and PQE Oil in the amount of 25%,
o Tranche 2 of US$3.5million due once plant for more than 30 days is operating at greater than 1,000 bopd, accordingly Deloro will receive a further economic royalty from TMC Capital and PQE Oil in the amount of 10%; and
o Tranche 3 of US$3.95million due on or before by 1 June 2018.
Petroteq and Deloro will enter into a Joint Operating Agreement in due course and Petroteq will retain operatorship of the Asphalt Ridge project.
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