Papa Terra cluster
Production at the Papa Terra cluster decreased 50% from January to February 2024, mainly as a result of the scheduled shutdown in February for the connection of well PPT-12 to the production system and the continued workovers to replace ESP-pumps (Electrical Submersible Pump) in wells PPT-17, PPT-37, and PPT-50. The PPT-12 well was brought into production in the second part of February. The production decline was partially offset by the increased efficiency after optimizations in the surface facilities recorded in wells PPT-16, PPT-22, and PPT-51. Well interventions in Papa Terra, as well as ongoing maintenance work in the facilities, aim for greater stability and operational efficiency and support increased production going forward.

Peroá cluster
Production at the Peroá cluster remained stable January to February 2024 as a result of the sale of the natural gas volume outlined in the take-or-pay contract, which is lower than the asset’s current production capacity.

Illinois Basin
Production at Illinois Basin increased 12% from January to February 2024. The increased production follows the launch of two new production wells. The third new production well was completed in the beginning of March.

Maha’s Assets
Maha has an indirect working interest of 15% in the Peroá cluster and 9.375% in the Papa Terra cluster, with 3R Petroleum Offshore S.A. being the operator. Maha is also the operator holding 97% working interest in the Illinois Basin.

3R Petroleum
Maha announced in January that the Company acquired 5% of 3R Petroleum Óleo e Gás S.A. (“3R Petroleum”) capital stock. 3R Petroleums’ total production amounted in February 2024 to 42,709 boe/day, a decrease of 10% from January to February 2024 following the production decrease in Papa Terra cluster.

* Note: The information included hereunder relates only to Maha’s entitlement on Peroá and Papa Terra clusters’ production, considering its indirect participation interest on said assets. It was calculated based on the information made public by 3R Petroleum. The production from Peroá and Papa Terra clusters are not consolidated in Maha’s financial reporting. Maha’s share of results from the clusters are instead reported as Income from investment in associate. Maha’s acquisition of the assets was completed on May 23, 2023.

The definitive documents formalize Maha’s acquisition, being the transaction subject to the fulfillment of certain condition precedent, mainly related to:

• that all consents, authorizations, orders and approvals from relevant governmental authorities required for completion have been received;

• successful negotiation of the relevant operational and collaboration agreements/framework with PDVSA and/ or local authorities for the redevelopment of PetroUrdaneta’s fields. Such agreements aim to allow Maha to define a new development program of PetroUrdaneta and enhance control over the operations, particularly in the areas of purchasing, cash management and crude sales/offtake.

"We remain very optimistic about our possibilities to start producing the vast resources of oil at the PetroUrdaneta fields, as we envisage a very attractive risk-reward profile for this transaction. In any case, at this stage, we are looking at a very limited investment, but could be richly rewarded if things turn out the way we believe”, says Kjetil Solbraekke, CEO of Maha Energy.

Maha continues to closely monitor the political development in Venezuela, including which general or specific U.S. sanctions licensing that may be required for the implementation of activities authorized by General License 44 beyond 18 April 2024.

The webcast will be held in English and will be broadcasted live. An on-demand version will also be available on Maha’s website and YouTube channel. Questions to the presenters can be emailed in advance to the Company at info@maha-energy.com or be made directly on the day of the presentation in the YouTube Comments/Questions field.

Link to webcast: https://youtube.com/live/QsmLF8VvxEo?feature=share

Papa Terra cluster
Production at the Papa Terra cluster decreased 7% from December 2023 to January 2024, mainly as a result of scheduled shut down of operations in end of January for the connection of well PPT-12 to the production system. In addition, the work with replacing the ESP-pumps in wells PPT-50, PPT-17, and PPT-37 has been initiated. These interventions are expected to limit the production capacity until mid-April and are in line with the necessary requitements to guarantee production stability and operational efficiency planned for operation in 2024.

Peroá cluster
Production at the Peroá cluster decreased 1% from December 2023 to January 2024 as a result of the sale of the natural gas volume outlined in the take-or-pay contract, lower than the asset’s current production capacity, aligned with the market demand in January.

Illinois Basin
Production at Illinois Basin increased 120% from December 2023 to January 2024. The increased production follows the launch of two new production wells. The completion and production initiation of the third new well, the Ziliak 34-1 well, have however experienced a slight delay due to adverse weather conditions.

Maha’s Assets
Maha has an indirect working interest of 15% in the Peroá cluster and 9.375% in the Papa Terra cluster, with 3R Petroleum Offshore S.A. being the operator. Maha is also the operator holding 97% working interest in the Illinois Basin. In addition, Maha announced in January that the Company acquired 5% of 3R Petroleum Óleo e Gás S.A. (“3R Petroleum”). 3R Petroleums’ total production amounted in January 2024 to 47,180 boe/day, in line with the production in December 2023.

* Note: The information included hereunder relates only to Maha’s entitlement on Peroá and Papa Terra clusters’ production, considering its indirect participation interest on said assets. It was calculated based on the information made public by 3R Petroleum. The production from Peroá and Papa Terra clusters are not consolidated in Maha’s financial reporting. Maha’s share of results from the clusters are instead reported as Income from investment in associate. Maha’s acquisition of the assets was completed on May 23, 2023.

Maha proposes that a general meeting in 3R Petroleum resolves on a reduction of the number of Directors from seven (7) to five (5), on a new-election of Paulo Thiago Mendonça (chairman of Maha) and Fabio Vassel (board member of Maha) and re-election of Guilherme Affonso Ferreira, Paula Kovarsky Rotta and Harley Lorentz Scardoelli for a term of office of two years. Maha’s opinion is that the suggested changes shall positively contribute to the corporate governance of 3R Petroleum and to the achievement of the results aimed by the shareholders.

Maha is a shareholder of 3R Petroleum holding 12,019,184 shares, corresponding to five percent (5%) of 3R Petroleum’s capital stock. Maha published on January 17, 2024, a public letter to 3R Petroleum’s board of directors, detailing Maha’s objectives with the investment in 3R Petroleum, and outlining the initiation of a consolidation plan within the Brazilian onshore segment, followed by the separation of 3R Petroleum's offshore assets.