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Mayan Energy to benefit from Firebird pipeline oil distribution deal
Energy services and development company Mayan Energy expects to benefit from a six month distribution deal between Petroteq Energy and Firebird Logistics.
The deal will see Firebird provide transport and distribution for 100% of production from the heavy oil extraction facility in Asphalt Ridge, Utah, where Mayan has an interest in courtesy of Deloro Energy's acquisition of a 49% interest for $10m in January.
AIM traded company Mayan holds a 17.6% shareholding in Deloro.
Eddie Gonzalez, chief executive of Mayan Energy, said: "We are extremely pleased to receive this positive news on our investment in Deloro Energy and I look forward to providing further updates in due course."
The deal with Firebird will continue on a month to month basis following the initial six month period, with monthly prices determined by the "the calendar day average of the NYMEX settlement price for West Texas Intermediate Light Sweet Crude Oil, less US$6.50 per barrel and adjusted for basic sediment and water," according to Mayan.
Alex Blyumkin, chief executive of Petroteq, said: "This critical offtake agreement enables Petroteq to focus on 24/7 uninterrupted production cycles and developing continuous growth of our production capacity. This agreement maximizes our flexibility and our price leverage by diversifying customers among all local refineries."
The deal gives Petroteq access to Firebird's 66 mile pipeline for hydrocarbon transfer to refinery facilities and corporations including Chevron, Plains All American and Sinclair.
As of 1211 GMT, Mayan Energy's shares were down 0.11% at 0.89p.