Mayan Energy 'excited' by gas discovery at Texan site

Oil and gas company Mayan Energy on Thursday announced a new gas discovery at Stockdale Field in Texas as part of ongoing developments at the site.

The evaluation of an additional prospective zone, called the Escondido Sand formation, led to the identification of 20ft of net pay with approximately 10ft of oil/condensate below a 10ft gas cap.

The company reported that it is particularly "excited" by the discovery and estimated a potential recoverable natural gas of 1.3m cubic feet per day and 10 to 11 barrels of condensate per day.

The AIM-traded company has a 60% working interest and a 45% net revenue interest in Stockdale Field.

Eddie Gonzalez, managing director of Mayan Energy, said: "The new zone identified by our technical team speaks to both the quality of personnel that shareholders have working for them and the upside potential in the Stockdale Field. Natural gas is historically a low maintenance revenue stream when volumes are of sufficient quantity."

The identification of the discovery took place as a result of development activities at the Morris#1 well which are being undertaken to increase net production to 300-500bopd in the medium term.

"Together with production from the commingled Lower and Upper Anacacho formations, the Morris#1 has the potential to not only become a major source of cash flow for Mayan but could de-risk multiple additional opportunities at Stockdale," said

As of 1222 BST, Mayan Energy’s shares were up 3.72% at 0.75p.