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Mayan Energy wraps up first phase of expansion work at Asphalt Ridge
AIM-quoted oil and gas exploration and production firm Mayan Energy has reported the completion of the main phase of construction work to expand heavy oil extraction capacity at the processing facility on its Asphalt Ridge project in Utah by the project's operator, Petroteq Energy.
Asphalt Ridge, a heavy oil sands deposit with a contingent resource of 87m stock tank barrels in place, was now capable of processing an average of 1,000 barrels of oil equivalent per day, Mayan said. This will be the first step in a multi-phase development aimed at raising that figure to more than 5,000 boepd by 2019.
The main structure had been reassembled, with the motor control centre installed to accommodate the wiring of motors, pumps and mechanical equipment as part of the future expansion of the plant.
Mayan chief executive Eddie Gonzalez said, "At current oil prices, production at Asphalt Ridge is estimated to generate netbacks of circa $35-plus per barrel net of royalties, production and transportation expenses.
"With this in mind, I look forward to providing further updates on progress at Asphalt Ridge, as well as on our operations in Texas where we are homing in on our medium-term target to increase net production to 300-500bopd."
Mayan has a 17.6% interest in Deloro Energy, which recently completed the first tranche of its $10m acquisition of a 49% interest in Asphalt Ridge.
As of 0840 GMT on Friday, shares had picked up 4.11% to 0.760p.