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Maha Energy AB Announces Filing of Second Quarter Report 2021 & Live Webcast

on Share

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 2021

  • Daily oil & gas production for Q2 2021 averaged 3,104 BOEPD (Q2 2020: 3,602 BOEPD)
  • Production at the Tie filed was interrupted during the second quarter and restored back to normal production volumes by mid-June 
  • The Company spudded its first horizontal well at the Tie field on 9 July and has so far spudded 4 wells out of the 12 oil well program in the Illinois Basin
  • Revenue of USD 15.2 million (Q2 2020: USD 7.9 million)
  • Operating netback of USD 9.5 million or USD 35.46 per BOE (Q2 2020: USD 4.4 million or USD 13.80 per BOE)
  • EBITDA of USD 9.0 million (Q2 2020: USD 3.4 million)
  • Net result of USD 2.6 million (Q2 2020: USD 0.4 million)
  • Basic Earnings per share of USD 0.02 (Q2 2020: USD 0.00)
  • Diluted Earnings per share of USD 0.02 (Q22020: USD 0.00)
  • Cash and cash equivalents balance of USD 34.1 million (Q2 2020: 15.7 million)

Six Months Ended 30 June 2021

  • Daily oil & gas production for H1 2021 averaged 3,421 BOEPD (H1 2020: 3,445 BOEPD).
  • Revenue of USD 31.0 million (H1 2020: USD 19.1 million)
  • Operating netback of USD 20.6 million or USD 34.56 per BOE (H1 2020: USD 12.2 million or USD 20.42 per BOE)
  • EBITDA of USD 19.2 million (H1 2020: USD 9.9 million)
  • Net result for the period of USD 8.1 million (H1 2020: USD 3.6 million)
  • Basic Earnings per share of USD 0.08 (H1 2020: USD 0.04)
  • Diluted Earnings per share of USD 0.08 (H1 2020: USD 0.03)
  • Cash and cash equivalents balance of USD 34.1 million (2020: USD 6.7 million)

Financial Summary

(TUSD, unless otherwise noted) Q2 2021 Q1 2021 Q4
2020		 Q3 2020 Q2 2020 H1 2021 H1 2020 FY 2020
Net Daily Production (BOEPD) 3,104 3,742 2,738 3,580 3,602 3,421 3,445 3,301
Revenue 15,178 15,814 8,659 11,226 7,926 30,992 19,133 39,018
Operating netback 9,548 11,031 4,247 7,041 4,377 20,579 12,235 23,523
EBITDA 8,988 10,213 2,720 5,514 3,436 19,201 9,870 18,104
Net result for the period1 2,603 5,538 (15,702) 1,845 407 8,141 3,598 (10,259)
Earnings per share – Basic (USD) 0.02 0.05 (0.15) 0.02 0.00 0.08 0.04 (0.10)
Earnings per share – Diluted (USD) 0.02 0.05 (0.15) 0.02 0.00 0.08 0.03 (0.10)
Cash and cash equivalents 34,139 5,698 6,681 18,034 15,699 34,139 15,699 6,681

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

  • Maha’s 15th consecutive profitable quarter2
  • Two of the top three onshore producing wells in Brazil belong to Maha
  • Production fully restored after mechanical issues on a key well in Brazil
  • 98% of TO-2 (2017) warrants converted to shares
  • 2021 work program expanded and accelerated in response to strong price of oil

The second quarter saw continued strengthening of the price of oil.  The average Brent oil price for the quarter landed at USD 68.97 per barrel, up some 11% compared to the previous quarter.  The average production for the Company during the quarter was 13% lower compared to the first quarter; but because of the strong price of oil, Company revenue was comparable to the year’s first three months.  The EBITDA for the quarter suffered slightly due to unplanned workovers at the Tie field which impacted operational expenditures.  But, despite these temporary setbacks, Maha remains profitable and this quarter marks the 15th straight profitable quarter, if you ignore the non-cash write down of the LAK oil field in December last year.2

Four events dominated the quarter and are worth expanding on;

Firstly, two wells in the Tie field continue to dominate production for the Company and are listed in the top three performing wells onshore Brazil, according to the ANP.  One of these wells suffered mechanical setbacks during the quarter which in turn required a series of rig based interventions to remediate.  The loss of production from this well during the quarter contributed to lower than planned production.   But as at the end of May, the well was restored to routine production, and at the end of the second quarter, the Brazilian fields were back to normal operations.

Secondly, planned and unplanned shutdowns at the Tie and Tartaruga facilities along with the unplanned well interventions mentioned above led to unexpected expenditures to restore production.  This in turn impacted production volumes and operating expenses.  The compounded effect of higher costs and lower production numbers is what caused the Company’s high operating expenses for the quarter.  Since the middle of June, production has been restored and has remained at planned levels at all fields with all wells onstream and producing.  Operating costs has also returned to a more normal USD 5 – 6/BOE range.

Thirdly, the SEK 300 million bond from 2017 was redeemed and replaced by the announced USD 70 million BTG Pactual financing.  A direct consequence of the financing was that the 2017 issued warrants (TO-2) remained ‘in the money’, which in turn generated SEK 53,018,729 of cash to the Company as warrant holders converted warrants to shares.  All in all, close to 98% of the outstanding warrants were converted to shares, which is an excellent ratio and demonstrates a very strong interest in the Company.  Coupled with the US$ 10 million private placement of shares to BTG and the strong oil price environment, the Company now sits in a position of very low net debt and a strong cash balance.

Lastly, the development pace in the Illinois Basin (IB) increased.  At the end of the quarter a total of four production wells and one water disposal well had been drilled.  All of these 4 production wells require initial stimulation and as at the same date, 3 wells had already been stimulated and the fourth was under way.  The work program was accelerated in view of the strong price of oil and favourable economic conditions with the result of higher production volumes already being recorded.  A total of 12 wells will be drilled in IB this year, and we expect to end the year between 600 – 700 BOPD coming from the IB area alone.

As always, a big thank you to all Maha employees that I know work so hard for all of us.  And to all fellow shareholders – thank you for your continued support.

Jonas Lindvall
Managing Director

Q2 Webcast today at 16:00 CET

There will be a live webcast today, 23 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.

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 23 August, 2021.

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

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

1 Net result of Q4 2020 and full year 2020 includes an impairment charge of USD 21.0 million.

2 The LAK Ranch asset was impaired by USD 21 million in a non-cash write down at the end of 2020 due to the low oil price environment which impacted the net result of the Company for the fourth quarter 2020.

Attachments

20210823 Maha Energy Press Release – Q2 2021 ENG FINAL
Maha Energy Q2 2021 Report ENG FINAL

20210823 Maha Energy Press Release - Q2 2021 ENG FINAL
Maha Energy Q2 2021 Report ENG FINAL

Maha Energy AB (publ) (“Maha” or the “Company”) announces new role of Chief Operating Officer

on Share

Maha is pleased to announce that Alan Johnson, member of the Management Group, assumes the role of the Company’s Chief Operating Officer (COO) effective immediately. Alan joined the Company in September of 2019 in the capacity of the Vice President of Operations, and his responsibilities will continue to support Maha as it enters this next phase of its growth plans.  

Miscellaneous
The information was submitted for publication, through the agency of the contact person set out below, at 17:00 CET on 8 August, 2021.

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

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

Attachments

20210808 Maha Energy Press Release COO ENG FINAL

20210808 Maha Energy Press Release COO ENG FINAL

Maha Energy AB (publ) (“Maha” or the “Company”) announces spud of Tie-4 and an operational update

on Share
  • Maha Energy AB spudded its first horizontal well with a planned Electric Submersible Pump (“ESP”) artificial lift system on the Tie field late on 9 July, 2021. This marks the implementation of two new technologies the Company is applying to the productive Tie field in Brazil. 
  • Since May this year the Company has already drilled 5 oil wells in Illinois Basin (“IB”) and is drilling 7 additional oil wells. All wells will be stimulated using high pressure stimulation and, all going well, the 12 oil well work program is scheduled to be completed by the end of September.
  • Tie-3 was recently acid stimulated and is back online and is showing good improvement in production.
  • Second quarter (“Q2”) production numbers were lower than planned for the quarter due to planned and unplanned shutdowns at the Tie field production facility. At this time, the Company is confident in achieving the annual average production guidance target of 4,000 – 5,000 BOEPD1. Higher than expected production from the already drilled Tie-2 production well and anticipated production additions from Tie-4 and IB will offset the lower Q2 volumes.

Tie-4 Horizontal Well
The Tie-4 horizontal well was spudded late on Friday July 9, 2021. The Faxe-2 hydro-electric drilling unit has been retained on a one firm and six optional well drilling contract. Tie-4 is the fourth production well drilled on the Tie field by Maha Energy since the 2017 acquisition of the field from Gran Tierra Energy. 

This well will be the first of two horizontal production wells in the Tie field. The well is targeting a 600 m. horizontal section in the Agua Grande (“AG”) reservoir and is expected to take ~75 days to drill and complete. Due to the well being drilled as a horizontal production well, the anticipated production volumes are estimated to be larger than the comparable vertical wells in the Tie field. As a result, the well will be completed with a high volume Electric Submersible Pump for oil production. Both these technologies are ‘a first’ for Maha on the Tie field and underscores the utilization and benefit of modern technology on a developed production asset.

The second horizontal well (Tie-6) will be drilled into the Sergi reservoir, directly after drilling a new water injection well (Tie-5) to the south in the Tie field. The water injector will be drilled immediately after the Tie-4 horizontal well.

Tie-3
The hybrid oil-production/water injector Tie-3 well was drilled, completed and tested earlier in the second quarter of 2021.  Analysis of test data suggested that the AG reservoir might have been damaged whilst drilling and an acid remediation program was undertaken to increase production.  The one week remediation workover was completed during the first week of July and preliminary results point towards a 40% increase in production from this well. Currently, Tie-3 is still cleaning up and is flowing unassisted to production tanks at 170 BOPD. As per the development plan artificial lift was planned for both Tie-2 and -3. Therefore, a jet pump was ordered in 2020 and is now being installed at the Tie-2 and -3 site and is expected to be commissioned during the summer months.  Production from Tie-3 is expected to be boosted by some 40% by the pump.

Illinois Basin
Drilling continues in the Illinois Basin. As of today’s date a total of 5 oil wells have been drilled, and the sixth is in the process of being drilled.  A total of 12 oil wells will be drilled during 2021. All wells are stimulated using high pressure stimulation technology. Two drilling rigs are working simultaneously to drill these wells as expeditiously as possible.  Each well takes about one week to drill, after which a stimulation crew is mobilized to stimulate the three stacked limestone reservoirs. Stimulation operations usually take about one week to complete. Once stimulation is completed, the well is dewatered for about 2 weeks after which oil production commences. Initial production rates vary between 50 – 75 BOPD1 for each stimulated well.

Current production from the IB area is temporarily curtailed due to the drilling operations and has been averaging 210 BOPD1 since the beginning of the year.

Production Interruptions during the second quarter
Production at the Tie field was significantly interrupted twice during the second quarter.  The first field wide shut down was unplanned and occurred on 5 May when a severe thunderstorm caused a field wide and grid wide power outage. Even though power was restored within 6 hours, Tie-2, a key producer, required a rig intervention to recommence production.  

The second shut down was a planned shutdown on 11 June,- which lasted 14 hours and was required for upgrades to the gas handling system, flare system and metering for future gas growth. 

The above plant shut downs accelerated the need to convert Tie-1 to a dual zone jet pump producer (previously one zone flowing, one zone on jet pump) and two rig interventions were conducted during Q2 to achieve this. This, in turn, led to a shortfall of approximately ~570 BOPD in April and 600 BOPD in May. The well is now running on a newly installed quintuplex jet pump system and met production targets for the month of June.

As at 15 June production at the Tie field was restored to normal production volumes with all wells onstream and has remained stable at predicted volumes.

Upcoming Milestone
The next key event to reach plateau production at the Tie field is the completion and tie-in of the Tie-4 horizontal well. Drilling Rig maintenance and drilling problems on Tie-2 and -3 has delayed the spudding of this well, but the Company is pleased to finally report the commencement of this well. Due to the future high rates predicted from this well, the Company has decided to use an ESP on this well. The ESP has been ordered and is expected to be delivered and installed during the 4th quarter. Tie-4 will initially be placed on natural flow.

At this time, the Company is confident in achieving the previously communicated annual average production guidance target of 4,000 – 5,000 BOEPD1.

1 BOEPD: Barrels of Oil Equivalents Per Day. Produced and sold natural gas is converted at a rate of 6,000 SCF per Barrel of oil equivalent.  BOPD: Barrels of Oil Per Day.

The information was submitted for publication, through the agency of the contact person set out below, at 19:15 CET on 11 July, 2021.

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

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

Attachments

20210711 Maha Energy Press Release ENG

20210711 Maha Energy Press Release ENG

Change in number of shares and votes in Maha Energy AB (publ)

on Share

The number of shares and votes in Maha Energy AB (publ) has increased following the issue of 7,316,608 new shares during June through the exercise of 200,000 warrants of series 2018/2021 issued under the incentive program adopted at the annual general meeting held in 2018, and the exercise of 7,116,608 warrants of series TO 2 A.

As of 30 June 2021 the total number of shares in the company amounts to 119,615,696, out of which 119,132,330 are A-shares and 483,366 are B-shares. Each share carries one vote, and the total amount of votes as of 30 June 2021 is 119,615,696. The company’s registered share capital amounts to SEK 1,315,772.656.

For more information, please contact:        

Jonas Lindvall (CEO)
Tel: +46 8 611 05 11       
Email: jonas@mahaenergy.ca

or

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

Miscellaneous 
This information is such information as Maha Energy AB (publ) is obliged to make public pursuant to the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact person set out above, at 18:00 CET on 30 June 2021.

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

Attachments

210630 Maha Energy Press Release (number of shares and votes) – ENG

210630 Maha Energy Press Release (number of shares and votes) - ENG

Maha Energy AB (publ) (“Maha” or the “Company”) announces increase to 2021 Capital Plan

on Share

Maha Energy AB is pleased to announce an increase of USD 10.4 million to the previously announced 2021 Capital Plan.  The revised 2021 Capital Plan allocates a total of USD 36.8 million on capital projects during the year.

Jonas Lindvall, Managing Director of Maha Energy AB commented; “With strengthening price of oil, we are accelerating our growth plans for 2021.  Illinois Basin is an area where we can quickly and economically add cashflow by drilling new wells and capitalize on these higher oil prices.”

The Company is pleased to provide details of its revised 2021 Capital Plan as follows:

2021 Revised Capital Plan Summary – Total Budget USD 36.8 Million
(Items in Bold are new and additional projects for 2021)

Field Capital Program Revised Program 2021 Quarter Description/Purpose
Tie New Well
Tie-3		   Q1 (ongoing) Maintain Tie field long term production plateau
Tie New Well
Tie-4 (AG HZ)		   Q3 Maintain Tie field long term production plateau

 
Tie New Well
Tie-5		   Q4 Maintain Tie field long term production plateau

 
Tie Facilities   Throughout 2021 Completion of upgrade work, automation work, and tie in of new wells.
Tartaruga Facilities Upgrade   Q3 Increasing processing capacity
Iilliois Basin 4 New Wells 8 additional wells Q2 –Q3 Commitment wells plus 8 new wells.
Mafraq None Materials Q4 Long lead items to be purchased
LAK None Maintenance Q3 Selective well start ups

Illinois Basin (IB) –Illinois and Indiana, USA

Production continues from the IB area during 2021.  The previously budgeted 4 wells are progressing as per schedule.  In addition to these 4 previously budgeted wells, 8 further wells will be drilled and placed on production later in 2021.


Mafraq Oil Field, Oman

No wells are planned for 2021 in Oman – however, preparatory work will commence whereby personnel will be mobilized and equipment purchased so that drilling can commence during 2022.

LAK Ranch –Wyoming, USA

Production Optimization:
Minor capital has been allocated to commence well monitoring and selective well start up.

Funding of the revised 2021 Capital Plan

The revised 2021 Capital Plan has a total budget of USD 36.8 million for the above incremental projects and is expected to be funded primarily with operating cash flow. Maha has raised sufficient cash following the recent financing and equity transactions, to build a strong balance sheet for its next phase of development.

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 08:30 CET on June 7, 2021.

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

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

Attachments

20210607 Maha Energy Press Release Revised Capital Plan 2021 ENG

20210607 Maha Energy Press Release Revised Capital Plan 2021 ENG

Change in number of shares and votes in Maha Energy AB (publ)

on Share

According to previously published information, Maha Energy AB (publ) has carried out a directed share issue of 7,470,491 new shares of series A to the Brazilian Investment Bank Banco BTG Pactual S.A. The directed share issue has resulted in a change in the number of shares and votes in the company.

As of 31 May 2021 the total number of shares in the company amounts to 112,299,088, out of which 111,815,722 are A-shares and 483,366 are B-shares. Each share carries one vote, and the total amount of votes as of 31 May 2021 is 112,299,088. The company’s registered share capital amounts to SEK 1,235,289.968.

For more information, please contact:        

Jonas Lindvall (CEO)
Tel: +46 8 611 05 11       
Email: jonas@mahaenergy.ca

or

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

Miscellaneous                         
This information is such information as Maha Energy AB (publ) is obliged to make public pursuant to the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact person set out above, at 17:00 CET on 31 May 2021.

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

Attachments

210531 Maha Energy Press Release (number of shares and votes) – ENG

210531 Maha Energy Press Release (number of shares and votes) - ENG

Annual General Meeting in Maha Energy AB (publ)

on Share

Today, the annual general meeting of 2021 has been held in Maha Energy AB (publ). Below follows a summary of the decisions taken by the annual general meeting (all in accordance with the proposals presented in the notice to attend the meeting kept available at the Company’s website www.mahaenergy.ca).

The income statements and the balance sheets for the Company and the Group were approved and the Board of Directors and the CEO were discharged from liability for the financial year 2020.

The Meeting resolved that no dividend shall be paid for the financial year 2020 and that the Company’s available funds shall be carried forward in new account.

Jonas Lindvall, Nicholas Walker, Anders Ehrenblad, Harald Pousette, Seth Lieberman, and Fredrik Cappelen were re-elected as members of the Board of Directors. Harald Pousette was re-elected as Chairman of the Board.

The Meeting approved fees payable to the members of the Board of Directors and the Chairman of the Board of Directors, including remuneration for committee work, to be as follows: (i) annual fees of the members of the Board of Directors of SEK 300,000 (excluding the CEO); (ii) annual fee of the Chairman of the Board of Directors of SEK 415,000; (iii) annual fees of SEK 40,000 to members of the respective committees (excluding the CEO); (iv) annual fees of SEK 60,000 to the Chairman of the respective committees; (v) members of the Board of Directors shall be entitled to invoice the Company in so far as they perform services outside the Board assignment.

The accounting firm Deloitte AB was re-elected as the auditor of the Company, with authorized public accountant Fredrik Jonsson as the auditor in charge, for a period until the end of the 2022 Annual General Meeting. The auditor’s fee shall be paid upon approval of their invoice.

The Meeting approved the Nomination Committee’s proposal not to change the principles for the appointment of and instructions regarding a nomination committee adopted at the Annual General Meeting in 2020.

The Meeting resolved in accordance with the proposal of the Board of Directors to adopt a policy for remuneration and other employment conditions for senior executives of the Group, which shall apply for the time being. The policy is applicable on agreements entered into after the Annual General Meeting, and as far as changes are made to existing agreements, thereafter, and shall be reviewed at least every four years.

The Meeting resolved to approve the Company’s remuneration report for the financial year 2020.

The Meeting resolved in accordance with the proposals of the Board of Directors on two incentive programmes for senior management (LTIP 5 & LTIP 6) through issuance of warrants entitling to subscription of new shares of class A in the Company. Under the resolutions, the Company may issue a maximum of 1,048,286 under the incentive programme LTIP 5 and a maximum of 524,143 warrants under the incentive programme LTIP 6. The warrants within both incentive programmes may, with deviation from the shareholders’ preferential rights, only be subscribed for by the subsidiary Maha Energy Inc., after which Maha Energy Inc. is to transfer the warrants to the participants under each programme. Each warrant within the incentive programme LTIP 5 entitles to subscription for one new A-share in the Company during the period from and including June 1, 2024 up to and including February 28, 2025, at a subscription price shall be equal to 100 percent of the volume weighted average last closing price for the Company’s share on Nasdaq Stockholm during the period from and including May 21, 2021 until and including May 27, 2021. The increase of the Company’s share capital will, upon exercise of the warrants in incentive programme LTIP 5, amount to not more than SEK 11,531.146. Each warrant within the incentive programme LTIP 6 entitles to subscription for one new A-share in the Company during the period from and including June 1, 2023 up to and including February 29, 2024, at a subscription price shall be equal to 100 percent of the volume weighted average last closing price for the Company’s share on Nasdaq Stockholm during the period from and including May 21, 2021 until and including May 27, 2021. The increase of the Company’s share capital will, upon exercise of the warrants in incentive programme LTIP 6, amount to not more than SEK 5,765.573.

The Meeting resolved to authorize the Board of Directors to – for the period up to the next Annual General Meeting and at one or more occasions – resolve upon issuance of new shares, warrants and/or convertible debentures. Payment may be made in cash, in kind, through set-off of claims or otherwise be conditional. The Company’s share capital may be by support of the authorization be increased by an amount corresponding to 20 percent of the share capital and number of shares in the Company as of on the date the Board of Directors make use of the authorization. Deviation from the shareholders’ preferential rights shall be allowed in situations where a directed issue is deemed more appropriate for the Company due to timing, commercial or similar reasons, and in order to enable acquisitions.   

For more information, please contact:        

Jonas Lindvall (CEO)
Tel: +46 8 611 05 11       
Email: jonas@mahaenergy.ca

or

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

Miscellaneous                         
This information was submitted for publication through the agency of the contact persons set out above on May 27, 2021, at 16:45 CET.

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

Attachments

20210527 Maha Energy Press Release – Outcome AGM 2021 (ENG)

20210527 Maha Energy Press Release - Outcome AGM 2021 (ENG)

Maha Energy AB Announce Filing of First Quarter Report 2021 & Live Webcast

on Share

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

First Quarter 2021

  • The Company secured a USD 60 million loan financing and USD 10 million equity investment with leading Brazilian investment bank BTG Pactual.
  • The Tie-3 oil producing well has tested a combined 628 BOEPD, (549 BOPD, 0 BWPD and 470 MSCFPD of gas) from the Itaparica and Agua Grande reservoirs. The Sergi reservoir was not tested at this time.
  • Daily oil & gas production for Q1 2021 averaged 3,742 BOEPD (Q1 2020: 3,288 BOEPD)
  • Revenue of USD 15.8 million (Q1 2020: USD 11.2 million)
  • Operating netback of USD 11.0 million or USD 33.80 per BOE (Q1 2020: USD 7.9 million or USD 27.91 per BOE)
  • EBITDA of USD 10.2 million (Q1 2020: USD 6.4 million)
  • Net result of USD 5.5 million (Q1 2020: USD 3.2 million)
  • Basic Earnings per share of USD 0.05 (Q1 2020: USD 0.03)
  • Diluted Earnings per share of USD 0.05 (Q1 2020: USD 0.03)
  • Cash and cash equivalents balance of USD 5.7 million (Q1 2020: 19.2 million)

Financial Summary

(TUSD, unless otherwise noted) Q1 2021   Q4 2020 Q3 2020 Q2 2020 Q1 2020 Full Year 2020
Net Daily Production (BOEPD) 3,742 2,738 3,580 3,602 3,288 3,301
Revenue 15,814 8,659 11,226 7,926 11,207 39,018
Operating netback 11,031 4,247 7,041 4,377 7,858 23,523
EBITDA 10,213 2,720 5,514 3,436 6,434 18,104
Net result for the period1 5,538 (15,702) 1,845 407 3,191 (10,259)
Earnings per share – Basic (USD) 0.05 (0.15) 0.02 0.00 0.03 (0.10)
Earnings per share – Diluted (USD) 0.05 (0.15) 0.02 0.00 0.03 (0.10)
Cash and cash equivalents 5,698 6,681 18,034 15,699 19,190 6,681

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

I am very happy to report another strong quarter for the Company. The steady increase and stabilization in the price of oil price helped of course, but we also started the year off with good production gains compared to the prior quarter. The recently completed Tie-2 well tested just over 2,000 BOEPD to the rig tanks, which was well above our expectations. During the first quarter, drilling of Tie-3 yielded a pleasant surprise through the discovery of a brand new oil bearing reservoir on the western flank of the Tie field. Evaluation of the “Itaparica” reservoir took some time, and was somewhat hampered by unstable flow rates. However, after perseverance, 42° API oil flowed naturally into the rig tanks. Subsequent downhole pressure tests confirmed a new virgin pressure regime and that the Itaparica reservoir appears to have low permeability. The plan for Tie-3 now is to place it on temporary artificial lift until water cut increases to a point where it will be converted to a water injector. 

Preliminary interpretation of the Itaparica suggests that it extends to the north and west of the Tie oil field and could open up new reserve volumes in the future. Initial analysis also suggest that the Itaparica will respond well to hydraulic stimulation, just like the Penedo sandstone at Tartaruga. Needless to say, this new find adds further excitement to the Tie oil field development.

The price of oil recovered well during the quarter and seems to have stabilised around the USD 65/bbl mark. At these levels we generate a very healthy corporate netback which allows us to continue our organic growth by using internally generated cashflow. A further positive pricing update is that Petrobras revised the annual discount we receive for our crude oil delivered from the Tie field.  The discount for the next 12 months was reduced by USD 3/bbl, meaning our new net discount for 2021 is USD 5.86/bbl. We continue to work hard to improve our discounts with our other Brazilian customer. Furthermore, we are benefiting from the weak Brazilian Real (BRL) which has worked in our favor given that most of our expenses are in BRL whilst we effectively sell our oil in US dollars. During the past year the BRL has lost roughly 25% against the USD.

At Tartaruga, testing of the Maha-1 well is nearing its end – and unfortunately the initial results are inconclusive, meaning that we still do not understand where the produced water originates from. Until testing and analysis is complete, we will be focusing on the southern fault block where the existing TTG-1 and TTG-2 wells are producing oil. Hand in hand with the further development of Tartaruga, we will need to address handling of associated gas.  This is likely to take some time.  At the moment we are using six Gas to Wire (GTW) generators and we are evaluating other options in addition to expanding the GTW footprint at Tartaruga.

In 2017, we secured a SEK 300 million bond to purchase and develop the Tie field. The bond matured at the end of May this year, and in order to continue our growth, we refinanced the bond with new debt at the end of March. As such I am very pleased to say we redeemed the bond early and have now secured sufficient capital to continue growth in Oman and in the USA. At current oil prices, the USA assets start to generate healthy returns, and although ultimate recoveries per well are modest, the predictability of the oil reservoirs makes future wells very low risk there.   In Oman, we will be placing long lead equipment orders with a view to start drilling early 2022.

As vaccinations continue, we look forward to some resemblance of normality. Our near-term objective is to drill Tie-4, our first horizontal well in the Tie field. Tie-4 will target the Agua Grande reservoir and will eventually be completed with an Electrical Submersible Pump (ESP).  Once Tie-4 is drilled, the Tie field should reach its designed productive capacity. A water injector will immediately be drilled after Tie-4 to support important pressure maintenance in the field. We will also be drilling at least four wells in the Illinois Basin to maintain production levels there as well.

Finally, we are very pleased to see the release of our first Sustainability Report on April 19, 2021. Our newly formed ESG team did a great job in pulling together all the information for this colorful report.  You can view it on our website www.mahaenergy.ca.  Further, and as part of the due diligence conducted for the recently completed financing, a full independent ESG audit was performed on our Brazilian operations.  It is reassuring that we passed.  But as with most things, we can always improve, so the team is in full swing in addressing the improvements highlighted in the audit report.

Four years ago, our initial bond allowed us to quadruple production volumes, and with new financing secured the race is on to continue our growth in all three operational areas. So, stay with us – the best is yet to come.

As always, a big thank you to all Maha employees that I know work so hard for all of us. And to all fellow shareholders – thank you for your continued support.

Yours truly,

Jonas Lindvall
Managing Director

Q1 Webcast today at 16:00 CET

There will be a live webcast today, 26 May 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.

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 26 May, 2021.

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

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

1 Net result for Q4 2020 and full year 2020 includes an impairment charge of USD 21.0 million.

Attachments

20210526 Maha Energy Press Release – 2021 Q1 ENG
Maha Energy Q1 2021 Report (ENG)

20210526 Maha Energy Press Release - 2021 Q1 ENG
Maha Energy Q1 2021 Report (ENG)

Maha Energy AB (publ) (“Maha” or the “Company”) confirm 42° API oil in new Itaparica oil reservoir and announce the hook up of Tie-3 well to Tie production facilities

on Share

The Tie-3 oil producing well has tested a combined 628 BOEPD1, (549 BOPD, 0 BWPD and 470 MSCFPD of gas) from the Itaparica and Agua Grande reservoirs. The Sergi reservoir was not tested at this time.

The recently completed rig-site test of the Tie-3 well flowed oil and gas at a rate of 410 BOPD and 369 MSCFPD (472 BOEPD1) from the Agua Grande reservoir only. The deeper Itaparica and Sergi reservoirs have not been completed at this time.  The newly discovered Itaparica formation was extensively tested and flowed 42° API oil to surface at an initial peak and unstable2 rate of approximately 139 BOPD. It is too early to determine the impact of this find on the Tie field oil volumes, if any.

Jonas Lindvall, CEO of Maha Energy commented “Tie-3 is designed as a water injector on the southwestern flank of the field.  Whilst drilling the well, a new and hereto untested formation was encountered above the Sergi reservoir (called the Itaparica) which we have tested with encouraging results.  The oil is of higher quality compared to the Agua Grande and Sergi reservoirs.  Although initial indications are that the Itaparica formation is tight, oil free flowed to surface and we believe modern stimulation technologies can be applied to improve productivity of this zone.  Work will now focus on determining the potential size of the Itaparica and an appropriate stimulation technology to increase the productivity.”

Tie-3 Test Results

The Tie-3 well was designed as a long term water injector well at the southwestern flank of the Tie structure with an initial oil production phase prior to use as an injector.  With the discovery of the Itaparica and the full oil column in the Agua Grande, the well will produce oil until water cut increases and allows for an efficient water injection point in the Tie field.  Three reservoirs were penetrated at the Tie-3 location; the Agua Grande (11 m. net pay), Itaparica (3.1 m net pay) (new) and Sergi (1.6 m net pay above the oil water contact).

The Itaparica was flow tested whilst recording bottom hole flowing pressures which confirmed the reservoir was at virgin pressure and not connected to the Agua Grande or Sergi reservoirs.  After an initial unloading of the diesel cushion, the well flowed a mixture of oil and gas at an unstable rate of 139 BOPD.  After the initial flow period, swabbing assistance was required to provide continuous inflow to the tubing string, suggesting either a low permeability or skin-damaged wellbore.  Upon retrieval of downhole gauges and a series of build-up tests, initial analysis suggests a permeability of 1-3 mD, and a skin damage of ~+25.

Further studies are now underway to determine the best stimulation technology to improve productivity of the Itaparica.  A direct analogy in Brazil, is the Penedo sandstone in the Tartaruga field where initial and unstimulated productivity can be increased significantly by the application of hydraulic stimulation.

Upon completion of the Itaparica tests, the Agua Grande zone was opened up for clean-up flow.  During a short 24 hour clean up period the Agua Grande free flowed 37° API oil to surface at an average rate of 410 BOPD, 0 BWPD and 369 MSCFPD. The well was then hooked up to the production facilities.

Tie-3 (Itaparica)
Initial free flow test results from the Itaparica are as follows:
Oil Production                                                    : 139 BOPD2 (unstable rate)
Water Production                                              : 0 BWPD
Gas Production                                                  : 101 MSCFPD
BOEPD                                                                 : 156 BOEPD
Choke Size                                                           : 1-1/2”
Flowing Wellhead Pressure                             : 0 psi

Tie-3 (Agua Grande)
Initial free flow test results from the Agua Grande are as follows:
Oil Production                                                    : 410 BOPD
Water Production                                              : 0 BWPD
Gas Production                                                  : 369 MSCFPD
BOEPD                                                                 : 472 BOEPD
Choke Size                                                           : 1”
Flowing Wellhead Pressure                             : 80 psi

1 BOEPD : Barrels of Oil Equivalent per Day; 6,000 SCF = 1 barrel of oil
2 It was not possible to attain a stable rate during the Itaparica test and the test was cut short after the swabbing equipment failed prompting the operations to focus on the shallower Agua Grande reservoir.

MSCFPD = thousand standard cubic feet per day
BWPD = Barrel of water per day
BOPD = Barrels of Oil per Day

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 19:40 CET on May 6, 2021.

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

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

Attachments

20210506 Maha Energy Test Result ENG FINAL

20210506 Maha Energy Test Result ENG FINAL

Change in number of shares and votes in Maha Energy AB (publ)

on Share

The number of shares and votes in Maha Energy AB (publ) has increased following the issue of 2,881,345 new shares of series A during April through the exercise of 2,881,345 warrants of series TO 2 A.

As of 30 April 2021 the total number of shares in the company amounts to 104,828,597, out of which 104,345,231 are A-shares and 483,366 are B-shares. Each share carries one vote, and the total amount of votes as of 30 April 2021 is 104,828,597. The company’s registered share capital amounts to SEK 1,153,114.567.

For more information, please contact:        

Jonas Lindvall (CEO)
Tel: +46 8 611 05 11       
Email: jonas@mahaenergy.ca

or

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

Miscellaneous                         
This information is such information as Maha Energy AB (publ) is obliged to make public pursuant to the Swedish Financial Instruments Trading Act. The information was submitted for publication, through the agency of the contact person set out above, at 18:00 CET on 30 April 2021.

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

Attachments

210430 Maha Energy Press Release (number of shares and votes) – ENG

210430 Maha Energy Press Release (number of shares and votes) - ENG