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Business combination between Maha and DBO 2.0 – a private upstream oil and gas company focusing on mature offshore fields in Brazil

on 5 de December de 2022 5 de December de 2022

Maha Energy AB (publ) (“Maha” or the ”Company”) is pleased to announce that it has signed a binding term sheet regarding a business combination with DBO 2.0 S.A. (“DBO”) for a consideration of 36,775,410 new shares in Maha (the “Transaction”). Maha and DBO have agreed in the term sheet to conclude the final documents during a 45-day exclusivity period. The Transaction is subject to inter alia confirmatory and satisfactory due diligence, board approvals and, if applicable, regulatory approvals, and a general meeting in Maha approving the necessary resolutions. The Transaction is expected to close in Q1 2023.

DBO is a private upstream oil and gas company focusing on mature offshore fields in Brazil. DBO was established in 2017 and has brought North Sea investors to invest into Brazilian assets, working with Brazilian partners and applying the most advanced North Sea approaches to identify additional reserves, develop mature oil and gas fields and increase oil and gas recovery.

Maha and DBO had its first strategic discussions in 2018. Since then, the DBO group has invested about USD 40 million in equity and built a strong position in the Brazilian E&P market, having invested in onshore fields with 3R, which was later incorporated in the listing of 3R Petroleum on the Brazilian stock exchange. Building on the partnership with 3R Petroleum, DBO became a 15% shareholder in 3R Petroleum Offshore S.A. ("3R Offshore"), which holds operated interests in producing oil and gas fields offshore Brazil. 3R Offshore is operator A (license to operate deepwater fields in Brazil) and has two assets offshore Brazil – the Peroá cluster (100% operated working interest) and the Papa Terra cluster (62.5% operated working interest, subject to completion of transaction with Petróleo Brasileiro S.A. (“Petrobras”). Further to these assets, DBO is continuously working on new business development opportunities, and will incorporate all its assets and efforts into Maha with the ambition to execute further growth through the joint strengthened platform.

DBO’s major investors and shareholders are Svein Harald Øygard (29.6%), Kjetil Solbrække (20.7%), Halvard Idland (20.7%), AGR Petroleum (9.1%) and Tore Myrholt (8.4%). The new shares in Maha issued as consideration to DBO’s shareholders will be subject to a 1 (one) year lock-up from Transaction’s closing.

Transaction Highlights¹

The Transaction reinforces the construction of a diversified portfolio balanced between mature oil and gas onshore and offshore assets.
In addition to increased production and reserves, DBO brings vast oil and gas experience, a highly successful deal track record, and access to further growth opportunities for Maha.
The Transaction will increase Maha’s net 2P reserves with approximately 18.5 mmboe and is estimated to add around 2,000 boepd net production in 2023.
The assets in DBO comes with infrastructure, including the Papa Terra FPSO (after closing) and Peroa production platform, yielding lower operating costs, and of which DBO indirectly owns its pro-rata share, as a shareholder of 3R Offshore.
Based on public reserve reports from DeGolyer and MacNaughton and Gaffney Cline, the 1P and 2P reserves have an estimated value (NPV10) of USD 108 million and USD 166 million net to DBO respectively, based on an oil price of USD 71/bbl in 2023 and USD 66/bbl thereafter and a gas price in the range of USD 5.0-5.5/mcf.
Subtracting USD 21 million relating to (i) DBO’s share of 3R Offshore’s contingent payments (subject to oil price and production performance, as well as to the development of Malombe) and (ii) closing consideration for Papa Terra cluster to be paid to Petrobras, yields a net asset value of USD 86 million for 1P reserves and USD 145 million for 2P reserves.
The exchange of shares ratio in the Transaction implies for DBO a price to net asset value of approximately 0.42x based on 1P reserves values and 0.25x based on 2P reserves values², and an EV/2P multiple (enterprise value to 2P reserves) of approximately USD 3.1/boe.

Reserves and asset values are derived from public reserve reports from DeGolyer and MacNaughton and Gaffney Cline
Based on closing share price of Maha of SEK 10.15/share and USD/SEK of 10.31 as of 2 December 2022

Peroá cluster: Peroá, Cangoa and Malombe
The Peroá gas cluster is located in the Espírito Santo basin, offshore Brazil in shallow waters. Approximately 72.4% gas has been recovered and remaining 2P reserves are estimated to 19 mmboe gross per year-end 2022. The cluster has a 55km gas pipeline connection to the Cacimbas gas processing plant (operated by Petrobras) and has an unmanned platform owned by 3R Offshore with opex of approximately USD 5/boe. The Peroá cluster includes the Peroá and Cangoá producing fields and the Malombe discovery. Malombe is considered to be tied back to the Peroá platform in the future and could add an estimated production of 16 kboepd (gross) at peak. During October 2022, gross production at the Peroá cluster was 2.5 kboepd (gross).

3R Offshore agreed the acquisition of the Peroá cluster from Petrobras in February 2021 and the acquisition closed in 2022.

Papa Terra cluster
Papa Terra is a heavy oil field located in deep waters in the Campos Basin, approximately 100km off the coast of the State of Rio de Janeiro, Brazil. Approximately 2.4% of the oil has been recovered as of October 2022 and gross 2P reserves are estimated to 166 mmboe per year-end 2022. This represents a 11.4% recovery factor, which compares with an average of 15.6% for the Campos Basin, suggesting further upside potential beyond the 2P reserves. During October 2022, gross production was 16.0 kboepd and production is expected to increase in the coming years due to increased drilling activity.

Papa Terra was discovered in 2003 and production started in November 2013. The field is developed with an FPSO (P-63) and a Tension Leg Wellhead Platform (P-61), both owned pro rata by the owners of the oil field, with a combined processing capacity of 140,000 barrels of oil per day, an injection capacity of 340,000 barrels of water per day, a storage capacity of 1.4 million barrels and slots to connect up to 21 producing wells and 11 injecting wells. Currently, 6 production wells and 3 injection wells are active and all systems have idle capacity to implement revitalization and redevelopment activities.

3R Offshore agreed the acquisition of Petrobras’ working interests (62,5%) in the Papa Terra Cluster in July 2021 and this acquisition is subject to specific condition precedent.

Miscellaneous
This information is such information that Maha Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 09:10 CET on 5 December 2022.

For more information, please contact:
Paulo Thiago Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

About Maha
Maha Energy AB (publ) is a listed, international upstream oil and gas company whose business activities include exploration, development and production of crude oil and natural gas. The strategy is to target and develop underperforming hydrocarbon assets on global basis. Maha operates four oil fields: Tartaruga and Tie in Brazil, Powder River (LAK Ranch) and Illinois Basin in the United States. The shares are listed on Nasdaq Stockholm (MAHA-A). The head office is in Stockholm, Sweden with a technical office in Calgary, Canada, as well as operations offices in Grayville, Illinois, USA and Rio De Janeiro, Brazil. For more information, please visit our website www.mahaenergy.ca

20221205 Maha Energy Press Release ENG_DBO

The board of directors of Maha Energy AB (publ) (“Maha” or the “Company”) announces that it is investigating two potential divestment opportunities

on 2 de December de 2022 2 de December de 2022

The board of directors of Maha today announces that it is currently investigating two potential M&A opportunities, comprising the potential sale of (i) the Company’s Brazilian assets and (ii) the Company’s US assets.

In line with the Company’s new strategic positioning, the board of directors has analyzed the optimization of the Company’s asset portfolio to enhance its capital structure and is investigating potential M&A opportunities. Maha is currently in different stages of negotiations regarding specific transactions which may involve the divestment of its Brazilian assets and the divestment of its US assets.

Potential divestment of Maha’s Brazilian assets
Maha is currently in discussions with an oil and gas counterparty regarding a potential divestment of the Company’s equity interest in its Brazilian assets. The parties are currently conducting a due diligence process and any future agreement will be released to the market in due course.

Regardless of the result of this potential transaction, Maha maintains its full commitment to efficiently developing its current operations in Brazil, focusing on increasing production and pursuing major benefits for its shareholders.

Potential divestment of US assets
Maha is receiving proposals for the divestment of its oil and gas assets located in the United States. The parties are currently conducting a due diligence process and any future agreement will be released to the market in due course.

No agreement has been reached regarding any of the above transactions and it is not possible to state with certainty that any agreement will be reached. Any agreement is inter alia subject to the parties completing due diligences and successfully negotiation and finding an agreement. Further information will be published when there is anything substantial to communicate.

For more information, please contact:
Paulo Thiago Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

20221202 Maha Energy Press Release - Divestment opportunities ENG

Maha Energy AB (publ) (“Maha” or the “Company”) Nomination Committee for the AGM 2023

on 24 de November de 2022 24 de November de 2022

In accordance with the resolution at the Annual General Meeting (“AGM”) of Maha Energy AB on May 31, 2022, it was resolved that a Nomination Committee shall be appointed. The Nomination Committee shall comprise of the Chairman of the Board of Directors and three members appointed by the three largest shareholders by votes as at the end of September each year.

As of September 30, 2022, and considering subsequently known changes, the three largest shareholders, which desired to appoint a representative to the Nomination Committee, were; TURMALINA FUNDO DE INVESTIMENTO EM PARTICIPAÇÕES MULTIESTRATÉGIA, KVALITENA AB and BANCO BTG PACTUAL S.A. Each such shareholder has appointed a representative, as shown below, who together with the Chairman of the Board of Directors will form the Company’s Nomination Committee.

The Nomination Committee’s members are:

Rodrigo Pires, appointed by Turmalina Fundo de Investimento em Participações Multiestratégia.
Christer Lindholm, appointed by Kvalitena AB
Edwyn Neves, appointed by Banco BTG Pactual S.A.
Fabio Vassel, Chairman of the Company’s Board of Directors

The tasks of the Nomination Committee shall be to prepare and submit to the AGM 2023 proposals in respect of:

•                        Number of members of the Board of Directors
•           Remuneration to the Chairman of the Board of Directors, the other members of the Board of Directors and the auditors, respectively
•                        Remuneration, if any, for committee work
•                        The composition of the Board of Directors
•                        The Chairman of the Board of Directors
•                        Resolution regarding the process of the Nomination Committee 2023
•                        Chairman at the AGM
•                        Election of auditors

The AGM 2023 is planned to be held in Stockholm, Sweden on May 24, 2023.

Shareholders who would like to submit proposals to the Nomination Committee can do so via e-mail to nomcom@mahaenergy.ca marked “Proposal to the Nomination Committee” or by ordinary mail to the address:

Maha Energy AB
Nomination Committee
Strandvägen 5A
SE-114 51 Stockholm
Sweden

To ensure that the proposals can be considered by the Nomination Committee, proposals shall be submitted in due time before the AGM 2023, but not later than February 28, 2023.

The information was submitted for publication, through the agency of the contact person set out below, 20:00 CET on 24 November, 2022.

For more information, please contact:
Paulo Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

20221124 Maha Energy Press Release - NomCom ENG

Maha Energy AB Announces Filing of Third Quarter 2022 Report & Live Webcast

on 15 de November de 2022 15 de November de 2022

Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce its third quarter results. The report is attached to this press release and available on the Company’s website at www.mahaenergy.ca.

Third Quarter 2022

Daily oil & gas production for Q3 2022 averaged 2,389 BOEPD (Q3 2021: 3,610 BOEPD)
Revenue of USD 17.7 million (Q3 2021: USD 19.5 million)
Operating netback of USD 11.0 million or USD 50.81 per BOE (Q3 2021: USD 13.6 million or USD 41.17 per BOE)
EBITDA of USD 9.6 million (Q3 2021: USD 12.9 million)
Net result of USD 2.6 million (Q3 2021: USD 6.1 million)
Basic and Diluted Earnings per share of USD 0.02 (Q3 2021: USD 0.05)

Nine Months Ended 30 September 2022

Daily oil & gas production averaged 3,412 BOEPD (Nine months 2021: 3,485 BOEPD)
Revenue of USD 72.5 million (Nine months 2021: USD 50.5 million)
Operating netback of USD 50.9 million or USD 58.25 per BOE (Nine months 2021: USD 34.1 million or USD 36.92 per BOE)
EBITDA of USD 46.3 million (Nine months 2021: USD 32.1 million)
Net result for the period of USD 22.8 million (Nine months 2021: USD 14.2 million)
Basic and Diluted Earnings per share of USD 0.19 (Nine months 2021: USD 0.13)
Cash and cash equivalents balance of USD 11.3 million (31 December 2021: USD 25.5 million)

Financial Summary

(TUSD, unless otherwise noted)	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Nine Months 2022	Nine Months 2021	FY 2021
Net Daily Production (BOEPD)	2,389	3,292	4,580	3,098	3,610	3,412	3,485	3,387
Revenue	17,657	24,018	30,831	17,818	19,496	72,506	50,488	68,306
Operating netback	10,998	17,408	22,528	11,913	13,568	50,934	34,147	46,060
EBITDA	9,648	14,621	22,069	15,615	12,909	46,338	32,110	47,725
Net result for the period	2,593	8,219	12,030	7,363	6,083	22,842	14,224	21,587
Earnings per share – Basic (USD)	0.02	0.07	0.10	0.06	0.05	0.19	0.13	0.19
Earnings per share – Diluted (USD)	0.02	0.07	0.10	0.06	0.05	0.19	0.13	0.19
Cash and cash equivalents	11,338	23,863	29,416	25,535	31,778	11,338	31,778	25,535

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

We are pleased to announce that throughout the third quarter of 2022, the Company has completed a number of important changes in its board of directors and executive management positions, enhancing Maha’s governance structure and leadership. First, the shareholders of Maha resolved to elect Fabio Vassel, Paulo Thiago Mendonça and Enrique Peña as new ordinary board members until the next annual general meeting to be held in 2023, replacing Jonas Lindvall, Nicholas Walker, and Christer Lindholm, and to elect Fabio as chairman of the board, replacing Harald Pousette who will remain as an ordinary member of the board of directors. The new board members are representatives of Starboard Group, a Brazilian private equity firm with significant experience and a strong track record in the oil and gas business, especially in the Brazilian market.

Starboard was the architect and creator of 3R Petroleum, a Brazilian independent oil and gas company listed on the Brazilian Stock Exchange with a current market cap of over USD 2 billion. 3R was the most successful participant in Petrobras’ divestment program, raising more than USD 2 billion in equity and debt. Paulo and Fabio are former chairmen and board members of 3R and were paramount in developing 3R into one of the leading junior oil companies in Latin America.

The new board has appointed Paulo Mendonça as the new CEO of the Company and Bernardo Guterres as the new CFO. Along with his experience at 3R, Paulo has also led over USD 5 billion in significant transactions in the O&G industry. Prior to this, Paulo was Head of Investment Banking at Brasil Plural’s Investment Banking division, responsible for M&A, equity, and capital market transactions.

Bernardo has an extensive background in the Brazilian financial market and O&G sectors, working at top-tier firms such as Itaú BBA, Deutsche Bank, Opportunity Private Equity, and Safra’s Private Equity and Investment Banking division. He is also a former board member of Petroreconcavo, an important Brazilian junior oil company, where he structured and led the first O&G onshore acquisition financing in Brazil, amounting to around USD 300 million.

These changes are part of the Company’s new strategic positioning, which will focus on expanding the Company´s footprint through organic and inorganic growth, maximizing the return to shareholders. Procurement and execution of opportunistic M&A transactions will be essential to the realization of this objective.

This new direction also comes with workstreams to materialize, such as:

Improvement of Maha’s current capital structure, strengthening the balance sheet and cash position;
Optimization of Capex and Opex to capture enhanced returns for deployed capital;
Analysis of asset portfolio optimization, including divestments and new developments.
Appointment of a new independent company to assess and certify reserves and resources;
Design of a dynamic and agile workplan for drilling and workover activities.

The third quarter was not Maha’s strongest, as quarterly production volumes were lower than planned and expected. Consequently, 2022 annual production guidance has been revised to 3,000 to 3,400 BOEPD. Production for the nine months ending September 2022 was 3,412 BOEPD; however, due to higher prices, revenues, and net results for the first nine months have increased, with nine months 2022 EBITDA of USD 46.3 million compared to EBITDA of USD 32.1 million for the same period last year. Nine months 2022 revenue was USD 72.5 million compared to nine months 2021 revenue of USD 50.5 million. Operating netback for the third quarter was impacted by workover costs and lost production; however, Maha’s nine months 2022 operating netback of USD 50.9 million has already surpassed the full year 2021 operating netback of USD 46.1 million. Maha closed the quarter with gross debt of USD 49.4 million and a cash position of USD 11.3 million, resulting in a Net Debt/EBITDA of 0.62. On a more operational prospective, there is robust indicators on the workover campaign in Brazil which has been completed and the Tie wells are onstream, showing a positive trend.

Finally, thank you for the confidence in the new Board of Directors and Executive Management that will lead Maha into its next stage. The Board of Directors and Executive Management are dedicated to increasing shareholder value, improving the Company’s desirability via improved performance, and ensuring close collaboration with our employees, clients, the Public Administrations and Society as a whole.

On behalf of everyone at Maha, we would like to personally thank each of you for your invaluable support as well as Jonas Lindvall for founding the company. We will work to ensure your trust is maintained as we strengthen and grow into the next chapter with full transparency, humility, and hard work.

We look forward to the future of the Company and all the potential it holds, and we will keep you closely informed of all major events and progress going forward.

Yours sincerely,
Paulo Mendonça (CEO)

Q3 Webcast today at 16:00 CET

There will be a live webcast today, 15 November at 16:00 CET (Sweden time) to present the quarterly results and provide an operational update. A link to the webcast is available on the Company’s website: www.mahaenergy.ca. Questions posted on the day of the presentation should be made directly in the YouTube Comments/Questions field. The webcast will be broadcast live on Nyhetsbyrån Direkts Youtube Channel and is hosted by the Company Laika and will feature representatives from Maha.

This information is such information as Maha Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07:30 CET on 15 November 2022.

For more information, please contact:

Paulo Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Bernardo Guterres (CFO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

2022 Q3 Maha Energy Report ENG

20221115 Maha Energy Press Release Q3 2022_ENG (Final)

The board of directors of Maha Energy AB (publ) (“Maha” or the “Company”) announces changes within its Management Team

on 4 de November de 2022 4 de November de 2022

The board of directors of Maha today announces that it has appointed Paulo Thiago Mendonça as new CEO of the Company and Bernardo Guterres as the new CFO of the Company. Former CEO Jonas Lindvall and CFO Andres Modarelli will with this step down from their positions as per today. During a short time ahead Jonas Lindvall and Andres Modarelli will help with the transition of duties to the new CEO and CFO.

Additional information about new appointments

CEO – Paulo Thiago Mendonça, born in 1988

Experience: Paulo Thiago Mendonça is currently a Managing Director at Starboard, responsible for private equity investments in the O&G industry. Paulo has previously been the Head of Investment Banking at Brasil Plural's Investment Banking division, responsible for M&A, equity and capital market transactions and worked at the Asset Management in Brasil Plural. Paulo has extensive experience in the oil and gas industry and has led more than USD 5 bn of important transactions in the sector.

Education: Degree in Mechanical Engineering (cum laude) from the Federal University of Rio de Janeiro (UFRJ).

Other assignments: Managing Director of the Starboard Group.

Previous assignments (last five years): Chairman and Board Member as well as Director of Business Development in 3R Petroleum. Responsible for raising more than USD 2.0 billion in equity and debt, Paulo was the key person in 3R Petroleum, contributing to create the company and turn 3R Petroleum in a public held company, with traded in the Brazilian Stock Exchange, and to build 3R Petroleum current success as a pioneer independent oil and gas company in Brazil with an approximately USD 2.0 bn in market capitalization. Head of Investment Banking at Brasil Plural´s Investment Banking division.

Independent in relation to the Company and the Company management: Yes.

Independent in relation to the major shareholders: No.

Holdings of shares in Maha: None.

CFO – Bernardo Guterres, born in 1986

Experience: Bernardo Guterres is a Partner and Executive Director at Starboard. He is responsible for sourcing, evaluating, and leading the execution of investment transactions. Bernardo has more than 15 years of experience in the investment banking, asset management, project finance and private equity industry.

Education: Bernardo holds a bachelor ´s degree cum laude in Production Engineering from PUC – RJ and a Master’s degree in Economy and Business Administration from FGV-RJ.

Other assignments: Executive Director of Starboard Group.

Previous assignments (last five years): Prior to joining Starboard, Bernardo worked at important Brazilian firms such as Banco Votorantim (senior credit analyst), Deutsch Bank (structuring finance associate), Itau BBA (Project Finance Associate), Opportunity Asset Management (Private Equity Principal), Safra Private Equity (Executive Director), and Safra Investment Banking (Executive Director).

Bernardo was also a board member at Petroreconcavo, a Brazilian onshore listed company with a total market capitalization of USD 1.7 billion, participating actively in the acquisition of the first onshore divested oil field made by Petrobras. He was the key person who led the structuring of a USD 300 million acquisition finance with a consortium of first tier banks.

Independent in relation to the Company and the Company management: Yes.

Independent in relation to the major shareholders: No.

Holdings of shares in Maha: None.

For more information, please contact:
Paulo Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

20221104 Maha Energy Press Release ENG

Extraordinary General Meeting in Maha Energy AB (publ)

on 3 de November de 2022 3 de November de 2022

The shareholders of Maha Energy AB (publ) (the “Company”) gathered in Stockholm, Sweden, Thursday November 3, 2022 for an extraordinary general meeting.

The extraordinary general meeting was convened following the request from Foil International Spain S.L., holder of approximately 12.2 per cent of the shares in the Company, to the board of directors to convene an extraordinary general meeting pursuant to Chapter 7, Section 13 of the Swedish Companies Act to resolve upon the proposed election of a new board of directors of the company.

The general meeting resolved in accordance with the proposal to elect Fabio Vassel, Paulo Thiago Mendonça and Enrique Penã as new ordinary board members until the close of the annual general meeting to be held in 2023, and to dismiss Jonas Lindvall, Nicholas Walker and Christer Lindholm from their assignments as ordinary board members.

The general meeting further resolved to dismiss Harald Pousette from his position as chairman of the board of directors and to appoint Fabio Vassel as chairman of the board of directors in his place. Harald Pousette will remain as an ordinary member of the board of directors until the end of the annual general meeting to be held in 2023.

For more information, please contact:
Jonas Lindvall (CEO)
Tel: +46 8 611 05 11
jonas@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

Miscellaneous
The information was submitted for publication, through the agency of the contact person set out above, 19:00 CET on 3 November, 2022.

20221103 Maha Energy Press Release - Outcome of EGM 3 November 2022 (ENG)

Maha Energy AB revises 2022 annual average production guidance

on 2 de November de 2022 2 de November de 2022

Technical challanges experienced during the production well workover program in Brazil, and later than planned commencement of the Block 70 extended well testing program in Oman will impact the 2022 production guidance. The estimated 2022 annual average production is therefore revised to 3,000 – 3,400 BOEPD¹ from 3,500 – 4,000 BOEPD¹.
Drilling operations in Oman are proceeding as anticipated, with 2 horizontal pilot production test wells and over 2.5 kilometers of net pay successfully drilled to date. The drilling rig is currently preparing to spud the third horizontal production test well.
Production testing of the Oman wells will commence as soon as transportation and processing agreements are finalised and approved by the Government of Oman.

Jonas Lindvall, CEO of Maha Energy AB comments: “I am happy that the very challenging workover program is completed and all producing wells in the Tie field are back on production. Unfortunately theses delays combined with a late start up to the Oman extended well testing will now impact the annual average production volume for 2022.”

The workover campaign in Brazil has been successfully completed and all Tie wells are onstream and cleaning up with no further planned well activity in Brazil for the remainder of the year.

In Oman, two horizontal pilot production test wells have been successfully drilled and completed in preparation for extended production testing. Drilling results to date have been encouraging with strong oil shows during each well and good reservoir quality being penetrated. A total of 2,508 m. of oil bearing reservoir has been drilled so far. Work is ongoing to finalise offtake agreements, and these are expected to be complete by year end.

Barrels of oil equivalent ("BOE") conversion ratio of 6,000 scf: 1 bbl is used.

Miscellaneous
This information is such information that Maha Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 18:40 CET on 2 November, 2022.

For more information, please contact:
Jonas Lindvall (CEO)
Tel: +46 8 611 05 11
jonas@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

20221102 Maha Energy Press Release ENG

Notice to attend the Extraordinary General Meeting in Maha Energy AB (publ)

on 11 de October de 2022 11 de October de 2022

The shareholders in Maha Energy AB (publ), reg. no. 559018-9543, (the “Company”) are hereby given notice to attend the exraordinary general meeting on Thursday 3 November 2022 at 4:00 P.M. CET at Sturegatan 10 in Stockholm, Sweden. Registration for the meeting commences at 3:30 P.M. CET.

Background

Foil International Spain S.L., holder of approximately 12.2 per cent of the shares in the Company, has requested that the board of directors, pursuant to Chapter 7, Section 13 of the Swedish Companies Act, convene an extraordinary general meeting to resolve upon the proposed election of a new board of directors as proposed in item 6 of the agenda below.

Notice

Shareholders wishing to participate at the meeting must:

be entered in the shareholders’ register, kept by Euroclear Sweden AB (the Swedish Central Securities Depository & Clearing Organisation), on the record day which is Wednesday 26 October 2022; and
notify the Company of their attendance and any assistant no later than Friday 28 October 2022. Notification can be made via letter to Setterwalls Advokatbyrå AB, Attn: Andreas Wårdh, P.O. Box 1050, SE-101 39 Stockholm, Sweden or by e-mail to andreas.wardh@setterwalls.se.

Notification shall include full name, personal identification number or corporate registration number, address and daytime telephone number and, where appropriate, information about representative, proxy and assistants. The number of assistants may not be more than two. In order to facilitate entry to the meeting, notification should, where appropriate, be accompanied by powers of attorney, registration certificates and other documents of authority.

Personal data obtained from the share register kept by Euroclear Sweden AB, notices and attendance at the meeting and information on representatives, proxies and assistants will be used for registration, preparation of the voting list for the meeting and, where appropriate, the minutes of the meeting.

Nominee registered shares

Shareholders who have their shares registered in the name of a nominee must request temporary entry in the transcription of the share register kept by Euroclear Sweden AB in order to be entitled to participate and vote for their shares at the meeting. The shareholder must inform the nominee well in advance of Wednesday 26 October 2022 at which time the register entry must have been made. Voting rights registration that has been requested by the shareholder at such time that the registration has been completed by the nominee no later than Friday 28 October 2022, will, however, be taken into account in the preparation of the share register.

Proxy

A shareholder represented by proxy shall issue a power of attorney which shall be dated and signed by the shareholder. If issued by a legal entity the power of attorney shall be accompanied by registration certificate or, if not applicable, equivalent documents of authority. Power of attorney forms for those shareholders wishing to participate by proxy are available on the Company’s website www.mahaenergy.ca. The original version of the power of attorney shall also be presented at the meeting.

Proposed agenda

Opening of the meeting and election of chairman of the meeting;
Preparation and approval of the voting list;
Approval of the agenda;
Election of one (1) or two (2) persons who shall approve the minutes of the meeting;
Determination of whether the meeting has been duly convened;
Election of board members;
Closing of the meeting.

Proposed resolutions

Item 1. Election of chairman of the meeting

The board of directors proposes that attorney Jörgen S. Axelsson is appointed chairman of the extraordinary general meeting.

Item 6. Election of board members

The Company's board of directors currently consists of six ordinary board members without deputy board members. Foil International Spain S.L. proposes that the general meeting resolves on new-election of Paulo Thiago Mendonça, Fabio Vassel and Enrique Peña as board members until the close of the annual general meeting 2023, and that Jonas Lindvall, Christer Lindholm and Nicholas Walker are dismissed from their assignments as board members.

Furthermore, Fabio Vassel is proposed to be elected as chairman of the board of directors and that Harald Pousette is dismissed as chairman of the board of directors, but remains as board member in accordance with previous election until the close of the annual general meeting 2023. A presentation of the proposed members of the board of directors follows in below.

Presentation of proposed board members

Fabio Vassel, born 1976

Proposed chairman of the board of directors

Experience: Fabio Vassel has over 25 years of experience working on Private Equity buy-side and Restructuring Advisory in Latin America, North America and Europe. Fabio was previously Partner and Head of Restructuring & Private Equity at Brasil Plural. Fabio has experience from Jefferies (Zurich and London), Nomura (London) and UBS Investment Bank (New York and London).

Education: Master of Business Administration (MBA) from The Wharton School of the University of Pennsylvania. Bachelor of Arts (BA) from the University of São Paulo (FEA-USP).

Current assignments: Managing Director of the Starboard Group.

Previous assignments (last five years): Chairman of 3R Petroleum and Board Member of Gemini Energy.

Independent in relation to the Company and the Company management: Yes.

Independent in relation to the major shareholders: No.

Holdings of shares in Maha: None.

Paulo Thiago Mendonça, born 1988

Proposed board member

Experience: Paulo Thiago Mendonça is currently a Managing Director at Starboard, responsible for private equity investments and advisory in special situations transactions. Paulo has previously been the Head of Investment Banking at Brasil Plural's Investment Banking division, responsible for M&A, equity and capital market transactions and worked at the Asset Management in Brasil Plural. Paulo has extensive experience in the oil and gas industry and has led important transactions in the sector.

Education: Degree in Mechanical Engineering (cum laude) from the Federal University of Rio de Janeiro (UFRJ).

Current assignments: Managing Director of the Starboard Group.

Previous assignments (last five years): Chairman and Board Member as well as Director of Business Development in 3R Petroleum. Head of Investment Banking at Brasil Plural´s Investment Banking division.

Independent in relation to the Company and the Company management: Yes.

Independent in relation to the major shareholders: No.

Holdings of shares in Maha: None.

Enrique Penã, born 1974

Proposed board member

Experience: Enrique Penã has over 23 years' experience in business development and strategic management in large corporations such as Shell, Boston Consulting Group, Orange and Renfe. Enrique Penã is currently Professor of Strategy in IE Business School and Deputy Director of the IE Negotiation and Mediation Centre.

Education: Universidad Politécnica de Madrid, Master in Infrastructure Management and Public Services. Universidad Politécnica de Madrid,Technical Engineering of Roads, Canals and Ports. The Wharton School of Business. University of Pennsylvania, Master in Business Administration (MBA). Universitat Oberta de Catalunya, Master in Education and Information. Universidad UNED-UJI, Master in Sustainability and Social Corporate Responsibility.

Current assignments: Deputy Director of the IE Negotiation and Mediation Center.

Previous assignments (last five years): Chief of Staff and Senior International Manager of Renfe-Operadora.

Independent in relation to the Company and the Company management: Yes.

Independent in relation to the major shareholders: No.

Holdings of shares in Maha: None.

Number of shares and votes in the Company

The total number of shares in the Company at the time of issuance of this notice is 119,715,696. The total number of votes for all issued shares in the Company is 119,715,696 votes. The Company does not hold any of its own shares.

Shareholders’ right to request information

Pursuant to Chapter 7 section 32 of the Swedish Companies Act (Sw. aktiebolagslagen (2005:551)) the board of directors and the managing director are under a duty to, if any shareholder so requests and the board of directors deems that it can be made without material damage to the Company, provide information, regarding circumstances which may affect the assessment of a matter on the agenda.

Documentation

Documents to be dealt with at the general meeting will be kept available at the Company’s office not later than three weeks before the meeting. The documents will be sent free of charge to shareholders who so request and state their postal address. The documents will also be made available not later than the aforementioned date on the Company’s website www.mahaenergy.ca. All the above mentioned documents will also be presented at the general meeting.

_____
Stockholm, October 2022
The board of directors

Offical version of notice to attend the extraordinary general meeting
The official version of the notice to attend the extraordinary general meeting is in the Swedish language and available for download at the following link: https://mahaenergy.ca/sv/bolagsstyrning/bolagsstamma.html

For more information, please contact:
Jonas Lindvall (CEO)
Tel: +46 8 611 05 11
jonas@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

Miscellaneous
The information was submitted for publication, through the agency of the contact person set out above, 15:00 CET on 11 October, 2022.

20221011 Maha Energy Press Release Notice to attend Extraordinary General Meeting in Maha Energy AB (publ) on 3 November 2022 ENG

Notice to attend Extraordinary General Meeting on 3 November 2022

Maha Energy AB (“Maha” or the “Company”) announce revised 2022 annual average production guidance, spud in Oman and a general operational update

on 6 de September de 2022 6 de September de 2022

The range for the 2022 annual average production is revised to 3,500 – 4,000 from 4,000 – 5,000 BOEPD¹.
Drilling in Oman started today, the Mafraq-7 well was spudded 5 weeks ahead of schedule.
A bid for Petrobras’ 25% Working Interest (“WI”) at the Tartaruga Field in Brazil was submitted on 1 September, 2022.

Delays in repairing production wells on the Tie Field in Brazil, and the effect of farming down 35% of the Mafraq Field in Oman will impact the Company’s 2022 full year production volume. On the Tie Field, in Brazil, three important producing wells (GTE-3, GTE-4 and Tie-1) have been shut in for much of 2022 primarily due to tubing leaks. The shortage of equipment and associated services in Brazil have resulted in repair delays and therefore lower than planned production at the Tie field. The new revised Maha production guidance for 2022 is 3,500 – 4,000 BOEPD. Details of the operations affecting the Company is provided below.

Jonas Lindvall, CEO of Maha Energy AB comments: “The combined effects of higher oil prices and the Petrobras onshore divestments in Brazil have created a huge demand on service contractors there. It has proven difficult to get equipment and services quickly and we were lucky to secure the “Braserv 144” workover rig earlier this summer. The rig is contracted until the end of 2022 and we are repairing the downed production wells as fast as we can.”

Details of Maha current operations:

Tie Field (Brazil)
ALV-2 (gas Injector)
The ALV-2 well was converted to a gas injector earlier this summer. This conversion allows for uninterrupted oil production at all times and the well was recompleted with new premium (gas tight) tubing.

GTE-3 (producing well)
This well is being converted from a dual jet pump completion to a single comingled Electric Submersible Pump (ESP) producer. Currently the dual packer is being retrieved and estimated completion date is later in September.

Tie-1 (producing well)
The Tie-1 production well requires a workover to retrieve stuck jet pumps in both completion strings.

GTE-4 (producing well)
The GTE-4 well suffers from a leaking tubing string and the tubing will be replaced once Tie-1 has been completed.

Tie-5 (horizontal producing well)
The Tie-5 horizontal was completed earlier this year. It has been producing steadily under natural flow with no water. However, initial production information suggest that the horizontal reservoir may have been damaged by drilling fluids during the drilling phase. The measured inflow is significantly less than what can be expected from a reservoir with such excellent properties. Plans are underway to recover the ESP and perforate parts of the horizontal liner using Tubing Conveyed Perforating (TCP) guns later in the year. This should address any damage caused whilst drilling and add production from the entire horizontal hole.

Tie-6 water injector
The Tie-6 well penetrated the Agua Grande (AG) Reservoir 12 meter higher than prognosed. The well is currently undergoing a series of production and injectivity tests and this well may be placed on temporary oil production before being converted to a water injector.

Tie Water Supply Well (WSW)
The drilling rig Faxe 2 is now being moved to drill a shallow water supply well on the Tie field. The WSW is an important water provider for the water injection program currently being implemented at the Tie field.

Tartaruga
The Tartaruga field is producing steadily from two wells with very little production decline. The Company has submitted a competitive bid for Petrobras’ 25% Working Interest in the field on 1 September, 2022. Immediate future work planned for the Tartaruga field is an additional horizontal well into the Penedo sandstone. The Tartaruga 3 (TTG-3) well has been identified as a possible candidate for the horizontal sidetrack.

Oman Block 70 (Mafraq field)
Plans are well developed to commence drilling on the Block. At the moment a total of six wells will be drilled. First, four (4) horizontal production test wells will be drilled and placed on long term test production. Two (2) appraisal wells will then be drilled to (a) identify the oil water contact on the structure, and (b) determine fracture orientation at various levels of the field. If results are deemed positive, the Company has secured sufficient equipment and services to immediately drill additional wells to add to the long term well test production volumes.

Gulf Drilling Rig 109 spudded Mafraq-7 today, 5 weeks ahead of schedule. A total of four (4) drilling pads and 18 km. of roads have been refurbished and/or constructed on Block 70. Work is proceeding to negotiate temporary offtake agreements for the extended well test produced crude oil.

Illinois Basin and LAK Ranch
Production from the IB asset is as expected, and work is progressing in identifying various quick, low cost, production gains through simple stimulation work. The LAK Ranch production was restarted in June as regulatory requirements in Wyoming necessitated multiple well reactivations. To date about 1,000 barrels of oil has been recovered from the LAK Ranch property since the wells were restarted. The Company is exploring various options, including divestment, of the LAK Ranch property.

Barrels of oil equivalent ("BOE") conversion ratio of 6,000 scf: 1 bbl is used.

2 The Block 70 Farm Out is subject to the approval of the Omani Government.

For more information, please contact:
Jonas Lindvall (CEO)
Tel: +46 8 611 05 11
jonas@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

20220906 Maha Energy Press Release ENG

Maha Energy AB Announces Filing of Second Quarter 2022 Report & Live Webcast

on 15 de August de 2022 15 de August de 2022

Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce its second quarter results. The report is attached to this press release and available on the Company’s website at www.mahaenergy.ca.

Second Quarter 2022

The Tie-5 well was completed free-flowing 766 BOEPD (590 BOPD and 1,054 MSCFPD) and is now producing through the Tie field’s permanent facilities.
The Tie-6 well was spudded in June and can potentially be hooked up for production during Q3.
Daily oil & gas production for Q2 2022 averaged 3,292 BOEPD (Q2 2021: 3,104 BOEPD)
Revenue of USD 24.0 million (Q2 2021: USD 15.2 million)
Operating netback of USD 17.4 million or USD 64.72 per BOE (Q2 2021: USD 9.5 million or USD 35.46 per BOE)
EBITDA of USD 14.6 million (Q2 2021: USD 9.0 million)
Net result of USD 8.2 million (Q2 2021: USD 2.6 million)
Basic and Diluted Earnings per share of USD 0.07 (Q2 2021: USD 0.02)
Cash and cash equivalents balance of USD 23.9 million (Q2 2021: 34.1 million)

Six Months Ended 30 June 2022

Daily oil & gas production for H1 2022 averaged 3,933 BOEPD (H1 2021: 3,421 BOEPD)
Revenue of USD 54.8 million (H1 2021: USD 31.0 million)
Operating netback of USD 39.9 million or USD 60.69 per BOE (H1 2021: USD 20.6 million or USD 34.56 per BOE)
EBITDA of USD 36.7 million (H1 2021: USD 19.2 million)
Net result for the period of USD 20.2 million (H1 2021: USD 8.1 million)
Basic and Diluted Earnings per share of USD 0.17 (H1 2021: USD 0.08)
Cash and cash equivalents balance of USD 23.9 million (31 December 2021: USD 25.5 million)

Financial Summary

(TUSD, unless otherwise noted)	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021	H1 2022	H1 2021	FY 2021
Net Daily Production (BOEPD)	3,292	4,580	3,098	3,610	3,104	3,933	3,421	3,387
Revenue	24,018	30,831	17,818	19,496	15,178	54,849	30,992	68,306
Operating netback	17,408	22,528	11,913	13,568	9,548	39,936	20,579	46,060
EBITDA	14,621	22,069	15,615	12,909	8,988	36,690	19,201	47,725
Net result for the period	8,219	12,030	7,363	6,083	2,603	20,249	8,141	21,587
Earnings per share – Basic (USD)	0.07	0.10	0.06	0.05	0.02	0.17	0.08	0.19
Earnings per share – Diluted (USD)	0.07	0.10	0.06	0.05	0.02	0.17	0.08	0.19
Cash and cash equivalents	23,863	29,416	25,535	31,778	34,139	23,863	34,139	25,535

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

Near record high oil prices helped our bottom line this quarter as our quarterly production volumes were lower than planned, and at the moment we are tracking around the bottom end of our 2022 production guidance of 4,000 BOEPD. Maha delivered a record first half of the year (H1) on all fronts, including production, revenues and net results. H1 average daily production landed at 3,933 BOEPD and H1 EBITDA was USD 36.7 million, almost double compared to last year’s record. Our result for H1 was twice that of our previous highest H1 result recorded. But even though we experienced unwanted and frustrating temporary production setbacks in Brazil during the quarter, we are making real progress in securing long-term production stability at the Tie field. Despite higher than normal operating expenses during the quarter, our Netback per barrel is at an all time high at USD 65 per BOE. Of course, we are not happy with the temporary reduction in production volumes from the Tie field, but we are working hard on getting all of our producing wells back on production again as soon as possible. Only two out of six wells contributed to our oil production at the Tie field this quarter.

Brazil
At our core asset in Brazil, the Tie field, production was lower during the second quarter due to; natural production decline, converting the Tie-3 well from an oil producer to a water injector, oil production from Tie-5 horizontal coming on late, and losing production from three key production wells (Tie-1, GTE-3, and GTE-4). These three wells are scheduled for repair using the contracted Braserv rig during the third and fourth quarters to restore production levels.

Operationally at the Tie field, the Tie-5 well was completed as a horizontal producer in July and flowed naturally 770 BOEPD on a 24 hour test. The Tie-5 continues to produce steadily with negligible water and will contribute to offset other temporary setbacks on the Tie-field. Further, unexpected positive news was encountered on Tie-6, where the Agua Grande (AG) reservoir was penetrated 12 meters higher than predicted. This is very good news, since the reservoir is higher structurally than anticipated, the seismic mapping of the structure will have to be redefined. Furthermore, and because most of the AG is now above the oil water contact, we are currently evaluating the possibility of initially producing the oil in the AG before converting the well to a water injector, as was originally planned.

Unfortunately, delays in the drilling of the Tie-4 and Tie-5 wells have adversely impacted the schedule for Tie-1, GTE-3 and GTE-4 workovers. The Brasserv workover rig was contracted in June to commence the well intervention work to restore production on the Tie field. To date, work on completing the Tie-5 oil producer and converting the ALV-2 well to a gas injector has been completed. Next, GTE-3, GTE-4 and Tie-1 will be restored to full production during the second half of the year. Importantly, Electric Submersible Pumps (ESP) will be installed in GTE-3 and then later in Tie-2 to further boost production at Tie.

Oman
After the contracted GBS-1 drilling rig was withdrawn by the drilling contractor, the Maha team in Oman acted swiftly to secure the Gulf Drilling Company Rig-109 and drilling is now expected to commence in October. The Company also decided to strategically farm down 35% of the Block 70 Exploration and Production Sharing Agreement to Mafraq Energy LLC. Not only does the farm down manage the Company’s asset risk exposure, but it also reduces cost and increase confidence in the project. Mafraq Energy brings important technical expertise as well as a strategic partnership in Oman to aid in future growth. It is probably the best proof yet of the robustness of the Mafraq field.

The Mafraq field is a delineated and tested heavy oil field onshore Oman. A previous operator tested 15,700 barrels of heavy oil from a single well over a 23 day well test period in 1991. Maha’s plan is to start drilling the first six appraisal and production pilot test wells on the field starting in October.

USA
Production from the Illinois Basin was steady during the quarter and the Company continues to evaluate the results from the 2021 drilling campaign along with potential growth opportunities in the USA. At LAK Ranch in Wyoming, the Company commenced a series of regulatory well tests and well reactivations. A strategic process was initiated during the quarter to evaluate the best future options for the LAK Ranch property.

It was a ‘mixed’ bag of events this quarter – some good and some not so good. As previously mentioned at the Tie field, we produced from only two wells, Tie-4 and Tie-2, for most of the quarter. This affected production significantly. Delays in the drilling of Tie-5 and the tubing leaks in GTE-3, GTE-4 and Tie-1 resulted in lower production volumes during the quarter. These three wells will be returned to production now that the drilling rig is moved out of the field and the workover rig has finished the work on the ALV-2 gas injection well. The fact that the AG was penetrated higher than prognoses in the Tie-6 well is very encouraging.

The future looks bright and busy for the second half of the year. With the workovers on the Tie field, we will add important barrels to our production and with the unexpected results of Tie-6, we may have a total of seven producing wells there, providing important production redundancy. Finally, in Oman, we will start the drilling of the large Mafraq structure and commence well test production at a commercial level. It is going to be a very busy second half of the year.

Finally, I wish to thank my fellow Maha colleagues who work so tirelessly for all of us, and to all loyal shareholders who support us. Thank you!

Yours truly,

Jonas Lindvall
Managing Director

Q2 Webcast today at 16:00 CET

There will be a live webcast today, 15 August at 16:00 CET (Sweden time) to present the quarterly results and provide an operational update. A link to the webcast is available on the Company’s website: www.mahaenergy.ca. Questions posted on the day of the presentation should be made directly in the YouTube Comments/Questions field. The webcast will be broadcast live on Nyhetsbyrån Direkts Youtube Channel and is hosted by Laikas’ Mr. Kaarlo Airaxin, and will feature Maha’s CEO Jonas Lindvall and CFO Andres Modarelli.

For more information, please contact:
Jonas Lindvall (CEO)
Tel: +46 8 611 05 11
jonas@mahaenergy.ca

Andres Modarelli (CFO)
Tel: +46 8 611 05 11
andres@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
victoria@mahaenergy.ca

2022 Q2 Maha Energy Report ENG

20220815 Maha Energy Press Release Q2 2022_ENG