Mayan Energy
Rapidly growing oil production from low-cost, distressed assets
Dallas based Mayan Energy listed on AIM in 2013 under the name Northcote Energy. In September 2016, successful US business man Eddie Gonzalez became CEO and introduced a new management team adopting a sensible new strategy.
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Initial target to grow oil production to 1,000 bopd in 2018
Mayan is re-focusing on the mature oilfields of Texas and Oklahoma. Developing shallow, low-risk projects with low levels of capex and infrastructure already in place. From this sound base, the company is seeking to grow production to 1,000 bopd within 12 months, adding 1,000 bopd annually thereafter.
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The Board & Management team has just invested £330,000, aligning interest with investors
Eddie Gonzalez has started building an impressive team of oil industry heavy hitters. One of them, Dr. David Kahn, who has been behind a number of 10,000+ bopd companies, has invested £250,000. This level of investment speaks volumes for the directors’ desire to see Mayan become a successful growth stock.
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Using powerful technologies to increase returns
New technologies will be used to improve downhole information and recoveries. These include the nanosurfactant ERA-3, which has been shown to improve recovery as much as 5-fold. This is a proprietary technology developed and owned by Mayan’s new Chief Technical Officer, Dr. David Kahn.
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DCF analysis reveals potential upside of in excess of 1,300%
Discounting our forecast cash flows (at a conservative rate) following the well workovers & new wells at the company’s growing list of projects & also adjusting for a further modest capital raise provides upside towards 1.6p. With the shares currently at 0.28p, and reflecting the risks involved, we initiate coverage of Mayan Energy with a Speculative buy stance.
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DISCLAIMER
Mayan Energy (MYN) is a research client of Align Research. Align Research & a Director of Align Research hold interests in the shares of MYN. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.
| Year to end Dec | 2015A | 2016A | 2017E | 2018E |
|---|---|---|---|---|
| Revenue (US$m) | 0.84 | 0.27 | 0.70 | 8.90 |
| PTP (US$m) | (6.19) | (7.15) | (3.65) | 3.37 |
| EPS (US$ cents) | (0.12) | (0.06) | (1.11) | 0.45 |
| EPS (p) | (0.09) | (0.05) | (0.85) | 0.32 |
| PE | N/A | N/A | N/A | 0.87 |