Mayan Energy reports encouraging progress on LM13 at Shoats Creek

Shares in Mayan Energy fell 16% despite announcing encouraging progress from its LM 13 Shallow-Well (LM13) programme at the Shoats Creek operation.

The company also said it continued to work on reducing its historic levels of debt and had recently concluded negotiations with one of its largest creditors settling with them for 21 cents on the dollar, lightening its debt load by close to $190,000 as a result.

Returning to LM13, Mayan Energy said that last week the the 2900 foot formation for the well was perforated and swabbed for the first time. Preliminary indications gave the presence of oil, natural gas and water coming from a three-foot-thick sand formation.

This supported the results indicated by earlier Roke Quad Neutron Log (Roke) analysis, as reported on 21 February.

"What I am seeing is that the output from the Roke Log work, is increasingly looking like it is 'for real'," said chief executive Eddie Gonzalez.

"The Roke logs indicated that the zone at 2900 foot was the weakest of three shallow zones, with the strongest indicated at 710 foot."

Mayan Energy's plan was to now perforate at that 710 foot level and see what things looked like there.

"Once we have the test results back, we will be reporting on them and look forward to doing that as soon as possible."

"As previously mentioned, subject to results from the LM13-Shallow-Well, we will then be reviewing our plans for the whole of Shoats and will report on them as soon as that exercise is finished."

At 14:54 BST, shares in AIM-quoted Mayan Energy were down 16% to 1.05p each.