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Mayan Energy, the dump after the pump - Zac "The Knife" Phillips has 14 questions for the shysters

By Tom Winnifrith, The Sheriff of AIM | Thursday 16 November 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Ramptastic - if not entirely transparent RNS releases, Bulletin Board and twitter ramping by all the usual suspects with ludicrous price targets, no cash. What on earth did you expect was going to happen next at perennial uber dog Mayan Energy (MYN)? As those who were paying up to 0.9p at peak ramp just a few days ago contemplate how they were used to get away a £2 million placing at 0.6p they should have very serious questions for London's worst Nomad Roland Fatty Cornish who has signed off in recent ramptastic releases. Enter the fray Zac "The Knife" Phillips of SP Angel, the City's top oil analyst who has 14 questions that a Nomad with a shred of integrity and competence would have asked before allowing the releases. Over to The Knife who writes:

Mayan Energy Why, Why, Why?: It seems that not a single announcement from Mayan Energy passes without it raising more questions than answers, and today's is no different. To our mind, these questions need answering urgently:

Are the NPVs for 100% of the project, or net to Deloro’s 49%?

If the Economics are Project based, what is the NPV net of the $2.5mm Tranche 1 “first acquisition sum,” the $3.5mm Tranche 2 “performance bonus,” and 3.95mm Tranche 3 “Second acquisition sum?”

Are the NPVs successes based, or risked?

What are the risks?

Has Petroteq's patented processes and Deloro's proprietary technology been tested together in a pilot plant, or is this the first time that these technologies will be combined?

Is the success of this combination required to achieve the returns highlighted?

As Deloro is an SPV, where has the proprietary technology originated, have the rights to the proprietary technology been assigned to Deloro?

What price deck has been assumed to arrive at the economics?

Why are the full details of the economic assessment of the acquisition target not being made public?

Why is the Company investing in another project when it hasn't got the projects that it currently owns to work yet?
Given the track record as Northcote and Mayan, can the Company deliver/what will Management do to ensure delivery of this project and ensure that the other projects in teh portfolio don't suffer from diverted cash resources?

As the 8.3% interest is will be acquired for ~$2.8mm (asssuming that each shareholder funds the remaining Tranches in propotion to their interest in Deloro), valuing the whole at $34mm, and the 1C contingent resource NPV(10%) is $35mm ($2.9mm net to Mayan's 8.3%), why are they paying such a premium for the risks?

Why in providing ~50% of the funds is Mayan Energy receiving only 17.6% of Deloro, when the remainder have 83%?

And lastly, perhaps more importantly, why is management of a public company investing in a minority stake in a company that most of management appears to own, why not direct in to Mayan?

There will be greater cash calls along the way, and investors should ask these questions before providing further support. The way Management is acting and the way this transaction has been structured, it doesn't appear that they have much respect for their shareholders, or to be acting in their best interests. May be the final questions should actually be what/when the next name change will be?

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