Forest Hill

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 ●, 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.

A phased work and well stimulation programme is underway with the intention to bring seven wells on stream during Q1 2018. If successful, Mayan believes that each worked over well has the potential to generating in excess of 35 bopd. In the meantime, the Gilbreath #19 well, which produced at an average rate of 43 bopd, is ready for immediate production once the Texas Railroad Commission (the oil and gas regulator in Texas,) grants its approval to production.

Current status is that well stimulation commenced ahead of schedule and production enhancement technologies will be applied following on from production testing.