Mayan Energy Limited Extended Completion Period and Issue of Equity (8007V)
July 26 2018 - 2:02AM
UK Regulatory
TIDMMYN
RNS Number : 8007V
Mayan Energy Limited
26 July 2018
Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 /
Sector: Oil and Gas
26 July 2018
Mayan Energy Ltd ("Mayan" or "the Company")
SPA Amendment to extend Completion Period
and Issue of Equity
Mayan (AIM: MYN), the AIM listed oil and gas company, announces
that, further to its announcement on 25 June 2018, it has signed an
amended Sale and Purchase Agreement with Smart Bit LLC ("Smart
Bit"), to extend the time for completion of the due diligence and
completion of the outstanding conditions until 22 August 2018. The
Company has also issued 18,437,951 ordinary shares to various
advisors for services ("Settlement Shares").
Sale and Purchase Agreement Amendment ('SPA')
On 25 June 2018 Mayan announced a conditional Sale and Purchase
Agreement with Smart Bit to acquire interests in 12 well bores,
including seven additional vertical wells at the Stockdale Field in
Wilson County, and three horizontal and two vertical Austin Chalk
wells in Wilson and Gonzalez Counties, Texas (the "Acquisition")
for a total consideration of US$605,000 (the "Consideration"). As
announced at that time, completion is conditional on the
satisfactory completion of full due diligence, agreed form of
assignment of wells, and Mayan and the Vendor entering into a Joint
Operating Agreement ("JOA").
Mayan has entered into a revised Sale & Purchase Agreement
to extend the due diligence and completion period until 22 August
2018. This is to ensure clear title can be passed across with all
necessary permits and approvals in place to enable immediate
work-overs and production to commence from the target well
packages. The Company will update investors once these conditions
have been satisfied.
Issue of Equity to Advisors
The Company has also issued 18,437,951 Ordinary shares to
various advisors to settle amounts owed and for contracted services
over the next 12 months (the "Settlement Shares") at a fixed price
of 0.6p (the "Settlement Price"). All shares issued will be subject
to a 3- month lock-in and 3- month orderly market and the
Settlement Price of 0.6p per share is the same price at which the
Company undertook its last placing and represents a premium of
approximately 13% to the closing mid-market price on 25 July
2018.
Issue of Warrants to Advisor
The Company has also issued 2,500,000 warrants to one advisor
exercisable at 0.9p per ordinary share for a period of two years
from the date of issue. These are based on same terms as the
warrants attached to the previous equity raise announced on 25 June
2018.
Total Voting Rights ("TVR")
In total 18,437,951 Ordinary shares will be issued at the
Settlement Price, and it is expected that Admission will become
effective and dealings in the Settlement Shares will commence on
AIM on or around 31 July 2018. The Settlement Shares will rank pari
passu with existing Ordinary Shares.
Following the issue of the 18,437,951 Settlement Shares, the
Company's issued share capital will consist of 1,401,823,416
Ordinary Shares with voting rights. No Ordinary Shares are held in
treasury at the date of this announcement and therefore following
the Admission, the total number of Ordinary Shares in the Company
with voting right will be 1,401,823,416.
The above total voting rights figure may be used by shareholders
as the denominator for the calculation by which they will determine
if they are required to notify their interest in, or a change to
their interest in the Company.
Special note concerning the Market Abuse Regulation
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014
("MAR").
**ENDS**
For further information visit www.Mayanenergy.com or contact the
following:
Eddie Gonzalez Mayan Energy Ltd + 1 469 394 2008
Charlie Wood Mayan Energy Ltd +44 7971 444 326
Roland Cornish Beaumont Cornish Ltd +44 20 7628 3396
James Biddle Beaumont Cornish Ltd +44 20 7628 3396
Colin Rowbury Novum Securities Limited +44 207399 9400
Frank Buhagiar/Gaby
Jenner St Brides Partners +44 20 7236 1177
Notes:
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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