MAYN ENER
30 September 2016
Mayan Energy Ltd / Index: AIM / Epic: NCT / ISIN: VGG6622A1057 / Sector: Oil &
Gas
Mayan Energy Ltd ("Mayan" or "the Company")
Interim Results
Oil Production Brought On Line. Gas Contract and Tap Installed. Positioned for
Growth.
Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to
announce its unaudited financial results for the six months ended 30 June 2016.
This has been a period which saw commencement of oil production from Shoats
Creek Field ("Shoats Creek") (the Lutcher Moore ("LM") 20 well), the
announcement of major steps leading to gas sales in the near term, the
implementation of a cost cutting regime, two fund raisings and two transactions
designed to deleverage the Company's balance sheet and reduce risk.
HIGHLIGHTS:
* LM 20 bought on stream -now producing a steady 120 bopd (24 bopd net to
Mayan (20%));
* Disposal of 70% working interest ("WI") in LM 20, for total consideration
of US$ 1.03 million, with a corresponding reduction in net current assets/
liabilities;
* Raised £0.95 million in new equity capital.
POST PERIOD END:
* Shoats Creek gas tie in contract announced;
* Shoats Creek gas line laid, with first gas sales planned for October 2016;
* Name changed to Mayan Energy Ltd to mark commitment to develop Mexico;
* Raised an additional £0.55 million in new equity capital.
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
After almost 18 months of decline, oil prices stabilised during the first half
of 2016 and given the consensus medium term outlook, the focus of the Board
turned to how to achieve profitability in the current oil price environment.
To this end, a change in leadership with a focus on cost cutting, sale of
non-core assets, optimising performance from the Shoats Creek field and pursuit
of the opportunities associated with Mexican energy sector reforms was embraced
and acted upon by the Board.
Management
In September, Mayan appointed Mr. Heriberto Gonzalez ("Eddie") as Chief
Executive Officer ("CEO") and Mr. James Doyle McGraw ("JD") as a non-executive
director of the Company.
Eddie and JD each have a successful track-record pursuing various business
opportunities in the United States of America ("USA"), and importantly,
Mexico. Most recently Eddie was involved in a 100,000 MMBTU 2-year natural gas
deal between U.S. suppliers and Comisión Federal de Electricidad, the Mexican
state owned utility.
At the same time, Mr Randy Connally and Mr Kevin Green stepped down from the
Board, with Mr Kevin Green remaining as a consultant. On behalf of the Board,
I wish them both well in their future endeavours.
Operations
US - Shoats Creek
The Board believes that Shoats Creek represents an excellent opportunity to
create real value for the Company, and be the spring board for Mexico. During
the period under review Shoats Creek has been a key area of focus and it will
continue to be so for the coming period.
In initiating production at LM 20, the Company took a major step in the
development of Shoats Creek. Since his appointment, Stephen Brock, the new
Vice President Operations, has been pursuing production and revenue growth by
way of low risk, low capital cost work-over and re-entry opportunities, and as
these initiatives bear fruit, the Company will continue towards the drilling
its next new Frio well, the LM21.
Subject to funding in respect of the medium and longer term plans, the Company
will seek to implement the following work program at Shoats Creek:
Short Term (1-3 Months)
* Installation of necessary equipment to permit sales of natural gas;
* Initiate Gas and Oil production from LM 14; and
* Initiate production from RC1 and RC2.
Medium Term: (3-6 Months)
* Acquire rights to additional adjoining acreage to expand the Shoats Creek
project area and provide additional prospective drilling locations;
* Subject to the above, re-enter and initiate gas and oil production from an
additional two wells;
* Subject to the above, re-enter and convert an existing well bore into a
second salt water disposal well, to provide for expanded capacity and
redundancy to the existing (LM 15) salt water disposal well.
Longer Term: (More than 6 Months)
* Drill and complete LM 21 and further review other drilling locations post
successful completion of LM 21;
* Additional geophysical and engineering work to high grade existing wells
and add additional locations in anticipation of a new well drilling
program.
US - Other
The Company has undertaken only limited activities in the other assets in its
US portfolio. These assets will be sold as and when suitable opportunities
arise.
Mexico
In Mexico, the Company's vision is to create an energy services company centred
on oilfield services and midstream opportunities. In the short term Mayan
Drilling Fluids, the joint venture ("JV") formed with Gaia Ecologica S.A. DE
C.V. ("Gaia"), a local oil field and environmental services company with a
strong track record, is intended to be the Company's entry platform into the
Mexican market. The JV is currently completing its first environmental waste
remediation facility capable of recycling oil cuttings. On its completion,
Mayan will be paid 85% of distributable cash flow until pay-out, plus a 9.0%
internal rate of return on its investment. Following payback, profits will be
split 51% to Mayan and 49% to Gaia.
The Company has undertaken the following initiatives regarding the development
of its Mexican businesses:
* Entering into a letter of intent with PEMEX, the Mexican national oil
company, to provide waste remediation services;
* Offering "public scale" services to trucking companies -utilizing the weigh
scales installed at its site in Comalcalco (the location of the planned
waste remediation facility);
* Advancing discussions with a range of parties to develop opportunities for
the initial remediation facility and to increase the number of other
opportunities in Mexico.
Commenting on the above, Mayan's CEO Eddie Gonzalez said:
"Since I have come on board, and started working with Stephen Brock who joined
the Company in August, we have been working flat out at getting the gas
accessible from our Shoats Creek wells into production. I have to say that
although we have been effected by bad weather and other hitches, we have kept
to the plan I envisaged. So right now we are looking to get the gas flowing
within the next week or so, with sales by the end of October.
"At the same time, I have implemented a regime which has led to considerable
cost savings - the benefits of which I expect to see flow through in the coming
months. Together with greater revenues from planned increases in production of
gas and oil, I am confident that the US will be operationally profitable soon.
"With Shoats now looking like it is on a good track, I am also committed to
monetizing our other "non-core" US assets. Also, with the benefit of more
capital in hand, I am personally going to revitalise the development of our
initiatives in Mexico. It is not going to be easy, but I am excited about it.
I think we got a good team now, and a clear plan. In my opinion, the future is
now beginning to look much brighter."
FINANCIAL REVIEW
During the period, Mayan raised £450,000 via the issue of 1,428,571,429 new
ordinary shares and £500,000 via the issue of 1,587,301,587 new ordinary
shares.
The Group generated a gross loss in the period of US$1,279,000 (30 June 2015:
US$2,141,000 Loss), an improvement of US$862,000 compared to the previous
period. The reduction in losses is attributable to cost savings made, and
lower operational losses suffered. As to the reduction in revenue numbers,
this is attributable to the decline in performance of Mayan's other (non-core)
interests, with production from Shoats presently limited to LM20, which only
came on stream in late April 2016.
As reported in January and in March 2016 the Company announced two transactions
which had the effect of reducing Mayan's working interest in LM 20, from 97% to
20% for a total consideration of US$ 1.03 Million. For the purposes of
preparing these interim financial statements, it has been assumed that the
above has been settled by offsets against amounts payable to Southern Coastal
Development Inc. the operator of Shoats Creek-in connection with the
transaction with them, while remaining outstandings from the other transaction
are included as a deduction from trade payables.
FUTURE PROSPECTS
Post period end the Group has continued to implement further steps to improve
operational and financial performance in the USA, and the recent progress at
Shoats Creek will be an important driver of this change. At the same time,
steps being taken now will, it is hoped, soon lead to the divestiture of
non-core assets. Taken together is expected that the benefits of these actions
will lead to improved results for the second half of the year and beyond.
Ross Warner Eddie Gonzalez
Chairman Chief Executive Officer
30 September 2016 30 September 2016
A copy of this announcement and the Interim results will be available on the
Company's website. For further information visit www.Mayan energy.com or
contact the following:
Eddie Gonzalez Mayan Energy Ltd + 1 469 394 2008
Ross Warner Mayan Energy Ltd +44 7760 487 769
Roland Cornish Beaumont Cornish Ltd +44 20 7628 3396
James Biddle Beaumont Cornish Ltd +44 20 7628 3396
Elliot Hance Beaufort Securities Ltd +44 20 7382 8300
Nick Bealer Cornhill Capital Limited +44 20 7710 9612
Elisabeth Cowell St Brides Partners Limited +44 20 7236 1177
Notes:
Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas
energy company with a vision of building a midstream service (oil and gas waste
management) and downstream operations business in Mexico ,exploiting the
opportunities arising from the liberalisation of that country's energy sector.
This vision will complement the Company's present operations which are
focussed on the redevelopment and enhancement of its upstream oil and gas
interests in Oklahoma and Louisiana.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
for the Interim six months period ended 30 June 2016
Six Months to Six Months to Year Ended
30 June 30 June 31-Dec
Notes 2016 2015 2015
(Unaudited) (Unaudited) (Audited)
US$ 000's US$ 000's US$ 000's
Revenue 50 349 841
Cost of Sales (241) (599) (961)
Gross Profit (191) (250) (120)
Other Operating Income -
Administrative expenses
Impairment of property, plant and equipment - - (1,361)
Other administrative expenses (1,064) (1,537) (4,299)
Total Administrative expenses (1,064) (1,537) (5,660)
Operating loss (1,255) (1,787) (5,780)
Finance Income - 3 20
Finance Costs (24) (357) (428)
Loss before income tax (1,279) (2,141) (6,188)
Income tax expense - - -
Loss for the period from continuing (1,279) (2,141) (6,188)
operations
Attributable to owners of the parent (1,279) (2,141) (6,137)
Attributable to non-controlling interest - - (51)
Loss for the period from continuing (1,279) (2,141) (6,188)
operations
Other comprehensive income
Items that may be reclassified subsequently
to profit or loss:
Currency translation differences - 164 254
Revaluation gains - 66 -
Other comprehensive income for the period, (1,279) (1,911) (5,934)
net of tax
Total comprehensive income for the period
Attributable to owners of the parent (1,279) (1,911) (5,883)
Attributable to non-controlling interest - (51)
Loss per share from continuing and (1,279) (1,911) (5,934)
discontinued operations
attributable to the owners of the parent
during the period
(expressed in cents per share)
- Basic and diluted 4 -0.0167 -0.0554 -0.1234
Group Statement of Financial Position
As at 30 June 2016
Six Months to Six Months to Year to
30 June 30 June 31 Dec
Notes 2016 2015 2015
(Unaudited) (Unaudited) Audited
US$ 000's US$ 000's US$ 000's
ASSETS
Non-current assets
Property, plant and equipment 6,141 5,522 6,601
Available for sale investments - 534 -
Total non-current assets 6,141 6,056 6,601
Current assets
Inventories 18 33 31
Trade and other receivables 331 464 325
Available for sale financial investments - - -
Cash & cash equivalents 50 2,348 91
Total current assets 399 2,845 447
TOTAL ASSETS 6,540 8,901 7,048
LIABILITIES
Non-Current Liabilities
Provisions (684) (684) (1,030)
Total non-current liabilities (684) (684) (1,030)
Current liabilities
Trade and other payables (1,861) (1,719) (2,006)
Borrowings - (361) (236)
Provisions (566) (160) (220)
Total current liabilities (2,427) (2,240) (2,462)
TOTAL LIABILITIES (3,111) (2,924) (3,492)
NET ASSETS 3,429 5,977 3,556
EQUITY ATTRIBUTABLE TO OWNERS OF THE
PARENT
Share Capital 5 - - -
Share premium 31,800 29,363 30,633
Foreign exchange reserve 314 239 329
Reverse acquisition reserve (8,202) (8,202) (8,202)
Retained earnings (20,792) (15,423) (19,513)
Total Equity attributable to the equity owners 3,120 5,977 3,247
of the parent
Non-controlling interest 309 - 309
TOTAL EQUITY 3,429 5,977 3,556
Group Statement of changes in equity
For the six months interim period ended 30 June 2016
Share Share Foreign Reverse Retained Non-Controlling Total
capital premium exchange Acquisition earnings Interests equity
reserve Reserve
US$ 000's US$ 000's US$ 000's US$ 000's US$ 000's US$ 000's US$ 000's
As at 1 January 2015 (audited) - 21,244 75 (8,202) (13,711) (594)
Loss for the period - - - - (2,141) - (2,141)
Items that may be reclassified - -
subsequently to profit or loss
Gain on available for sale investments - - - - 66 - 66
Currency translation differences - - 164 - - - 164
Total comprehensive income for the - 164 - (2,075) (1,911)
period
Issue of Shares - 9,030 - - - - 9,030
Share issue costs - (621) - - - - (621)
Issue of warrants - (290) - - 363 - 73
As at 30 June 2015 (unaudited) - 29,363 239 (8,202) (15,423) 5,977
As at 1 January 2016 (audited) - 30,633 329 (8,202) (19,513) 309 3,556
Loss for the period - - (15) - (1,279) - (1,294)
Items that may be reclassified -
subsequently to profit or loss
Gain on available for sale investments - - - - - - -
Currency translation differences - - - - - - -
Total comprehensive income for the - - (15) - (1,279) - (1,294)
period
Issue of Shares - 1,455 - - - - 1,455
Share issue costs - (288) - - - - (288)
As at 30 June 2016 (unaudited) - 31,800 314 (8,202) (20,792) 309 3,429
Group Statement of Cash Flows for the six months interim period ended 30 June
2016
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2016 2015 2015
(Unaudited) (Unaudited) Audited
US$ 000's US$ 000's US$ 000's
Cash flows from operating activities
(Loss) before tax (1,279) (2,141) (6,188)
Adjustments for:
Depreciation - 50 -
Impairment - - 1,359
Loss on disposal of property, plant and - 66 -
equipment
Share based payment expense - 83 -
Finance cost 24 357 428
Finance income - (3) (20)
Operating loss before changes in working (1,255) (1,588) (4,421)
capital
Change in working capital items
Decrease/(increase) in inventories 13 18 20
(Increase)/decrease in trade and other (6) (41) 68
receivables
(Decrease)/increase in trade and other (73) (141) (47)
payables
Net cash used in operating activities (1,321) (1,752) (4,380)
Cash flows used in investing activities
Acquisition of subsidiary (net of cash) - 1 (360)
Purchases of property, plant and - (56) (1,153)
equipment
Exploration and evaluation -tangible (43) - -
assets
Proceeds from farm-in/sale (100) 45 -
Purchase of available for sale - (468) -
investments
Interest received - 3 -
Net cash used in investing activities (143) (475) (1,513)
Cash flows from financing activities
Proceeds from issue of share capital 1,539 6,785 7,999
Share issue costs (288) (621) (703)
Repayment of borrowings 211 (1,579) (1,311)
Finance cost (24) (36) (22)
Net cash generated from financing 1,438 4,549 5,963
activities
Net increase in cash and cash (26) 2,322 70
equivalents
Cash and cash equivalents at beginning 91 5 5
of period
Effect of foreign exchange rate changes (15) 21 16
Cash and cash equivalents at end of 50 2,348 91
period
Notes to the consolidated financial statements (unaudited)
For the six months ended 30 June 2016
1.Basis of presentation
The condensed consolidated interim financial statements has been prepared under
the historical cost convention and on a going concern basis and in accordance
with International Financial Reporting Standards and IFRIC interpretations
adopted for use in the European Union ("IFRS").
The condensed consolidated interim financial statements contained in this
document do not constitute statutory accounts, for the current reporting
period, or for earlier periods, but is derived from those accounts where
applicable. In the opinion of the directors, the condensed consolidated
interim financial statements fairly presents the financial position, result of
operations and cash flows for the period.
A copy of this Interim Financial Report is available on the Company's website:
http://www.mayanenergy.co.uk/ and was approved by the Board of Directors on 30
September 2016.
Statement of compliance
The condensed consolidated interim financial statements have been prepared in
accordance with the requirements of the AIM Rules for Companies. As permitted,
the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in
preparing these interim condensed consolidated interim financial statements.
The condensed interim financial statements should be read in conjunction with
the annual financial statements for the year ended 31 December 2015, which have
been prepared in accordance with IFRS as adopted by the European Union.
Accounting policies
The condensed consolidated interim financial statements for the period ended 30
June 2016 has not been audited or reviewed in accordance with the International
Standard on Review Engagements 2410 issued by the Auditing Practices Board.
The figures were prepared using applicable accounting policies and practices
consistent with those adopted in the statutory annual financial statements for
the year ended 31 December 2016.
2.Financial risk management and financial instruments
Risks and uncertainties
The Board continually assesses and monitors the key risks of the business. The
key risks that could affect the Group's medium term performance and the factors
that mitigate those risks have not substantially changed from those set out in
the Group's 2015 Annual Report and Financial Statements, a copy of which is
available from the Group's website: www.mayanenergy.co.uk. The key financial
risks are market risk (including oil price and currency risk), credit risk and
liquidity.
Going concern
The Group has ambitious plans and the Board recognises that further funds will
be required in order to realise them. The Group has a track record of using a
variety of mechanisms to fund its commitments, whether it is through
operational cash flow, new equity, farm-ins and disposals. This flexibility
gives the Directors discretion around when expenditure is incurred, but it is
probable that further equity finance will be required at some point during the
next 12 months.
The Board is confident however, that capital will be available to allow it to
realise its strategic goals and that the Company will have the necessary
resources available to finance its future working capital and discretionary
capital expenditures beyond the period of 12 months of the date of this
report. Accordingly these interim financial statements have been prepared on a
going concern basis.
3.Segmental analysis
In the opinion of the Directors, as at the 30 June 2016 the operations of the
Group comprise one single operating segment comprising exploration, production,
development and sale of hydrocarbons and related activities. The majority of
the Group's operations in the period related to one geographic area: the United
States of America ("USA"). The Group has head office operations in the United
Kingdom and Mexico but the quantitative thresholds of IFRS 8 are only met for
the USA, which is therefore the Group's one reportable segment and the
Directors consider that the primary financial statements presented
substantially reflect all the activities of this single operating segment.
4.Loss per share
The calculation of earnings per share is based on the loss attributable to
equity holders divided by the weighted average number of share in issue during
the period:
Six Months to Six Months to Year to
30 June 30 June 31 Dec
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
US$ 000's US$ 000's US$ 000's
Net loss after taxation (1,279) (2,141) (6,188)
Weighted average number of ordinary 7,647,467,858 3,867,646,529 5,015,981,767
shares used in calculating basic
loss per share
Basic & diluted loss per share -0.0167 -0.0554 -0.1234
(expressed in cents)
As the inclusion of the potential ordinary shares would result in a decrease in
the earnings per share, they are considered to be anti-dilutive, and as such, a
diluted loss per share is not included.
5.Share capital
The authorised share capital of the Company and the called up and fully paid
amounts at 30 June 2016 were as follows:
A) Authorised US$'000s
Unlimited Ordinary shares of -
no par value
B) Called up, Number of Nominal value
allotted, shares
issued and
fully paid
As at 1 6,981,874,520 -
January 2016
Additions:
18/Mar/16 100,505,706 -
8/Apr/16 1,428,571,429 -
26/Apr/16 1,587,301,587 -
As at 30 June 10,098,253,242 -
2016
Shares issued on 18 March 2016 were issued at a price of US$ 0.00083 cents per
share, of this US$ 67,200 of shares was in settlement of the acquisition of an
additional 20% WI in the Cockfield- Shoats Creek and US$ 17,063 in settlement
of third party creditor services.
Shares issued on 8 April 2016 were issued at a price of 0.0315 pence per share,
for a cash consideration of £450,000 before share issue costs.
Shares issued on 26 April 2016 were issued at a price of 0.0315 pence per
share, for a cash consideration of £500,000 before share issue costs.
6.Share based payments
Total Options in issue
During the six month period ended 30 June 2016 no options were granted,
exercised, or forfeited. Movements on the number of share options and their
exercise price are as follows:
Weighted 6 months to Weighted Year to
Average Average
Exercise Exercise
Price Price
30 June 31 December
2016 2015
(Unaudited) (Audited)
Pence No of Pence No of
Options Options
000's 000's
Beginning of 1.86 49,000 1.86 49,000
period
Movement - - - -
End of period 1.86 49,000 1.86 49,000
Total share warrants in issue
During the six month period ended 30 June 2016 158,730,000 warrants were
granted, 26,669,000 lapsed and none were exercised or forfeited.
Weighted 6 months to Weighted Year to
Average Average
Exercise Exercise
Price Price
30 June 31 December
2016 2015
(Unaudited) (Audited)
Pence No of Pence No of
Warrants Warrants
000's 000's
Beginning of 0.26 726,637 0.97 89,851
period
Cancelled - - - -
Exercised - - 0 (12,500)
Modified - - - -
Lapsed 0.44 (26,669) - -
Granted 0.03 158,730 0.15 649,286
End of period 0.21 858,698 0.26 726,637
The parameters used to ascertain the fair value of share options, are as found
in the audited consolidated financial statements for the year ended 31 Dec
2015.
The fair value charged to the Group Statement of Changes in Equity for the six
month period ended 30 June 2016 was $nil (2015: $nil).
The Group recognised $Nil (2015: $363,000) related to equity-settled share
based payment transactions during the period, of which $Nil (2015: $Nil) was
charged to the convertible loan account as it related to costs of issue, while
$Nil (2015: $290,134) was charged to share premium and $Nil (2015: $72,866) was
expensed.
7.Investment in group companies
At 30 June 2016, the Group consisted of the following wholly owned subsidiary
companies:
Name Country of Interest Nature of business
incorporation held
Northcote Services LLC* USA 100% Administrative Company
Northcote Energy Limited Cayman Isle 100% Holding Company
Northcote USA Inc. USA 100% Holding Company
NAP Acquisition Inc. USA 100% Holding Company
Northcote Mexico, LLC * USA 100% Holding Company
Oklahoma Energy LLC* USA 100% Holds Oklahoma (Libby/Tinker) interest
Northcote Cleveland LLC* USA 100% Holds Oklahoma (Zink Ranch) interest
Northcote Oklahoma LLC* USA 100% Holds Oklahoma (Horizon and other
interests)
Northcote Minerals LLC* USA 100% Holds Royalty interests
Northcote Texas LLC* USA 100% Holds South Weslaco interest
Northcote Energy Mexico S de RL Mexico 100% Mexican Holding Company
de CV
NAP USA Inc. USA 100% Oil & Gas trading company
Northcote Osage LLC* USA 100% Oklahoma operating Company
NCLA Operating LLC* USA 100% Shoats Creek related activity
Northcote Louisiana Operating USA 100% Shoats Creek related activity
LLC*
Northcote Louisiana, LLC * USA 100% Shoats Creek related activity
Stillwater Operating LLC * USA 100% Shoats Creek related activity
Springer Energy Partners LP ** USA 53% General Partner of Springer Energy
Partners, LP
Mayan Drilling Fluids, S.A.P.I. Mexico 51% JV holding co for Mexico remediation
de C.V. project
Springer Energy Development, LLC USA 33.33% Limited partnership
*
Northcote Energy Development LLC USA 100% Dormant
*
Northcote Holdings LLC * USA 100% Dormant
Northcote Operating, LLC USA 100% Dormant
Northcote Gas Marketing LLC * USA 100% Dormant
Northcote Drilling Partners LP * USA 100% Dormant
*
Prosper Petro, LLC * USA 100% Dormant
Prosper Station 1, JV LLC * USA 100% Dormant
Northcote Drilling Ventures, LLC USA 100% Dormant
*
NCTX Operating LLC * USA 100% Dormant
* An LLC is not a corporation, it is a legal form of company that provides
limited liability to Mayan, its owner and general manager.
**An LP is not a corporation, it is a legal form of partnership that gives the
partners limited liability and is managed by a general manager.
8.Contingent Liability
As a consequence of its acquisition of the Shoats Creek Properties from Aminex
USA Inc. in 2014, Mayan has a US$10 per barrel Production Payment Obligation to
Aminex USA Inc. on Barrels Oil Equivalent ("BOE") oil produced from Mayan's
working interest barrels in that field. On 29 September 2015, and reflecting
weaknesses in oil prices at that time, the production payment obligation was
restructured with the price to be paid defined by the trailing 30 day average
WTI oil price as follows:
• Where the price is greater than $65.00 the payment would be $10
per BOE
• Where the price is greater than $45.00 but less than $65.00 the
payment would be $5 per BOE
• Where the price is less than $45.00 the payment would be $2 per
BOE
As payment of the production payment obligation is non-recourse and is only
payable out of production and as production is based on variables outside of
the Company's control, no provision has been booked in respect of future
barrels and each production payment will be charged to the Income Statement as
incurred.
9.Events after the reporting date
In July 2016 the Company secured a contract to sell natural gas from the Shoats
Creek Field, and subject to necessary investment to install gas lines that
would tie in to the gas tap expected first revenues to be in November 2016.
The Company believes it is on track to achieve this target.
In August 2016 Northcote Energy Limited changed its name to Mayan Energy
Limited, to reflect the Company's commitment to widening its exposure in
Mexico.
In September 2016 the Company announced the recruitment of a new management
team to lead its United States and Mexican Operations. This move saw the
stepping down of Randy Connally and Kevin Green from the Board, and the
appointments of Eddie Gonzalez as CEO, and J.D McGraw as a Non-Executive
Director, and Stephen Brock as Vice President of Operations.
At the same time the Company raised £500,000 through a Placing to investors,
with warrants issued to its broker to subscribe for new shares in the Company,
Ordinary Shares issued as adviser fees to the placing. Existing options to
Directors and management were also cancelled, and replaced by a new option
scheme.
More details of the above events were released by RNS and are also available
from the Company's website www.Mayanenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MAYAN ENERGY : Interim Results
September 30, 2016 at 10:01 am EDT
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