In August 2017 Mayan acquired a 70% Working Interest (‘WI’) and a 52.5% Net Revenue Interest (‘NRI’) in two leases at Forest Hill Fields (‘Forest Hill’), Wood County, Texas.
Forest Hill has been an historically prolific producer of oil (having produced 200 Million barrels to date) with more than 230 old or new wells in the fields. Historic production per well has typically been 50-100 barrels oil per day (‘bopd’) per well. Historically the main target has been the Paluxy formation, with formations including the Harris (heavy tar-sands) and the Sub-Clarksville (a medium oil zone).
The Board believes that Forest Hill presents an excellent opportunity for development as it considers substantial oil that remains, which could be recoverable by implementation of waterflood or other enhanced oil recovery programmes. With six wells on the two leases and 225 other local wells with 20-acre spacing with good reservoir characteristics, there is considerable scope for development and expansion; this has already started with the further acquisition of three adjoining wells.