Chapman Petroleum Engineering Ltd. (“Chapman”) has completed their annual reserve and resource determination for Maha Energy AB (publ) (“Maha” or the “Company”). The Company’s (“2C”) Contingent Resources volumes have increased by 49%, the Proven plus Probable reserves (“2P”) and 2C Contingent Resources volume are up by 2%. The 2P reserve volumes are down by 23% compared to the previous year. The reduction in 2P reserves does not affect the Company’s near to medium term production volumes, nor the resulting cashflows. The Company’s 2022 production guidance of 4,000 – 5,000 BOEPD remains.

The results of the recently tested (post December 31, 2021) and very positive Tie-4 well have not been included in the 2021 reserves and resource update and are expected to be included as part of the 2022 reserve and resource volumes.

The 2021 reserves are impacted by the 2021 drilling and testing results of the Tartaruga-3 well, produced volumes in Brazil and USA, seismic and reservoir modelling revisions at the Tie field in Brazil, as well as non-core lease relinquishments in USA. In Oman, both 2P reserves and 2C Contingent Resources have increased significantly due to seismic and petrophysical evaluations conducted during 2021. 

Maha Reserves and Resources¹ as of 31 December, 2021

[1] Volumes are Gross Working Interest volumes and are expressed before royalties, Government allocations and taxes.
2 The Tartaruga Concession Agreement expires in 2025 but provides mechanisms for extension based on the continued productivity of the field. Management is confident that such an extension will be approved, and Chapman has classified the recoverable volumes as reserves based on these mechanisms. Maha has a 75% Working Interest in the Tartaruga concession.
³ Chapman Petroleum Engineering Ltd. uses the following oil price forecast for Brent Spot in $USD/STB:

The average gas price for the gas reserves at Tie Field over the next five years is forecasted by Chapman to be around $1.00 USD/MSCF.

The reserves review and issuance of this reserve report for the Company was made by the independent petroleum engineering consultants Chapman Petroleum Engineering Ltd., Calgary, Canada. The evaluation was carried out in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook, the professional practice standard under their Permit to Practice with APEGA and under the guidelines of the European Securities and Markets Authority (ESMA). The report has been prepared and supervised by a “Qualified Reserves Evaluator”.

Maha Energy AB, through its subsidiaries owns and operates a legal and beneficial 75% Working Interest (WI) in the SES-107D Block (Tartaruga) onshore Sergipe State Brazil, a 99% WI in the LAK Ranch heavy oil field in Wyoming USA, a 100% Working Interest (WI) in the Tie Field onshore Bahia State Brazil, an initial 100% WI in the Block 70 Mafraq field under the Exploration and Production Sharing Agreement with the Government of Oman and approximately 96% WI in the acreage in the Illinois Basin.

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 13:15 CET on 31 January, 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

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.

Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce that the recently completed Tie-4 well is now tied into the permanent production facilities and has been placed on a 24-hour test using an Electric Submersible Pump (ESP). The results were 4,400 BOPD and 1,766 MSCFPD (4,695 BOEPD¹) with a stable tubing-head flowing pressure of 220 psi. The annual average production guidance of 4,000 – 5,000 BOEPD for 2022 remains.

Jonas Lindvall, CEO of Maha commented; “Testing of the Tie-4 well through the permanent production facilities is now completed. The well came on so strong we had to shut other wells in to accommodate the test volumes and additional oil trucks had to be mobilized. We are very pleased with the outcome. Again, the results demonstrate the top quality of the Tie field and the prolific nature of the Agua Grande and Sergi reservoirs.”

Mr. Lindvall continued: “We will now optimize oil production across all the Tie wells so that reservoir drawdown is evenly distributed across the field. The Tie-4 well will be choked back and will provide important future production redundancy. It is premature to assess how these results may affect annual production volumes.”

Tie-4
The Tie-4 well (7-TIE-4HE-BA) has now been tied into the permanent production facilities at Tie.  Both the Agua Grande (AG) and Sergi (SG) zones are perforated and are now comingled in a 3 ½” single tubing completion with an ESP. Initial stabilized well test results over a 24 hour period are as follows:

Oil Production: 4,400 BOPD
Water Production: 64 BWPD
Gas Production: 1,766 MSCFPD
BOEPD: 4,695 BOEPD
Flowing Wellhead Pressure: 220 psi

Tie-5
Significant changes have been made to the well design that should address the problems encountered on the Tie-4 well. The Tie-5 well is designed as a horizontal production well targeting the northern part of the AG reservoir. An ESP will also be run on this well. A drilling rig has been moved from the Tie-4 location to Tie-5 and rig up and commissioning is almost complete. The drilling of Tie-5 is slated to start within two weeks.

¹ BOEPD : Barrels of Oil Equivalent per Day; 6,000 SCF = 1 barrel of oil

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, 21:15 CET on 20 January, 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

Important Notice
Reported test production levels stated in this Press Release may not be reflective of permanent sustainable production rates and future production rates may differ materially from the test production rates reflected in this news release due to, among other factors, natural decline, water and/or gas coning, sand production, pump breakdowns or difficulties and surface interruptions encountered during permanent production operations.

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

The Board of Maha Energy AB (publ) (“Maha” or the “Company”) has approved the 2022 Capital Plan detailed in the press release dated 30 December 2021. The 2022 Capital Plan aims to invest USD 47 million on various drilling and construction projects in Brazil, USA and Oman. The Capital Plan is to be funded through operating cash and proceeds from the 2021 financing. The Company estimates its Corporate operating costs for 2022 (including oil transportation costs) to range between $10 and $13 per BOE based on the annual average production range of 4,000 – 5,000 BOEPD.

Jonas Lindvall CEO of Maha said: “2022 is shaping up to be a transformational year for Maha. We look forward to starting drilling and well testing operations in Oman and at the same time, transitioning the Tie field in Brazil from the development drilling phase towards the final phases of the waterflood implementation.”

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, 14:30 CET on 7 January, 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

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

A preliminary free flow well test and clean-up of Tie-4 yielded an initial comingled and restricted flow rate of approximately 936 BOEPD¹ (825 BOPD² and 668 MSCFPD² of gas). The well test had to be curtailed and shortened due to the high rates. The rig will now be moved out and the well hooked up to the permanent oil production facilities at Tie to fully clean up and test the well.  

Jonas Lindvall CEO of Maha said: “We are very pleased with the preliminary results of this vertical comingled free flow well test. The well test shows higher than anticipated productivity and since the flow was directed to the rig tanks, rates had to be restricted.  I anticipate we will have full oil flow test results towards the second half of January when the well has been tied in to the permanent production facilities.”

As previously announced, Tie-4 was successfully drilled, logged and cased as a vertical dual zone producer. Final completion operations have been executed on Tie-4 including the running and function testing of the downhole Electric Submersible Pump (“ESP”) on 3 ½” production tubing. Subsequent to the running of the ESP, a short clean up flow test was executed to flow back completion fluids and confirm initial well productivity.

Whilst slowly ramping up the ESP, the limits of the test facility were quickly reached and at this point the ESP was stopped and the well was choked back and allowed to free flow.  Testing was constrained at a small 24/68”- 28/64” choke. 
The following data was acquired flowing to a temporary test package with limited measurement capability.  Both the Agua Grande (AG) and Sergi SG) zones are perforated and are comingled in the 3½” single tubing completion.  Initial free flow test results are constrained by surface flaring limitations and are as follows:
Oil Production                                                   : 825 BOPD
Water Production                                              : 78 BWPD/ 9% Water Cut
Gas Production                                                  : ~668 MSCFPD
BOEPD                                                             : ~936 BOEPD
Choke Size                                                       : 28/64”
Flowing Wellhead Pressure                                 : 340 psi

Preliminary pump deliverability calculations made from downhole pump pressure readings suggests that the ESP will work as per design and operate within its design window of 1,000 – 2,400 BFPD. 

Work will now focus on tying the well into the permanent production facilities and place the well on production.  It will take 7 – 10 days to move the drilling rig off location and then 3 – 7 days for tie in and well testing.  The final flow rates will be announced later in January once Tie-4 is tied in, fully cleaned up and placed on a 24 hour test through the permanent Tie facility test separator.

¹ Oil Rates are determined by measuring atmospheric oil rig tanks and the gas rate is estimated using a field wide Gas Oil Ratio of +/- 810 SCF/bbl
² 6,000 SCF of gas = 1 Barrel of oil equivalent

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, 23:30 CET on 2 January, 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

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

Maha Energy AB (publ) (“Maha” or the “Company”) is providing production guidance of 4,000 – 5,000 BOEPD for 2022, compared to the estimated volume of 7,000 BOEPD presented in the 5 year operational strategy in early March 2021¹. The preliminary guidance accounts for the impact of the previously published delay and recent reconfiguration of Tie-4 production well from a horizontal well to a vertical well and is subject to certain assumptions as detailed below, including a potential farm down of parts of Block 70 in Oman. The guidance is subject to final approval of the proposed 2022 Capital Plan by the Company Board, which is expected early in the first quarter, 2022.

The Company is pleased to provide preliminary details of its 2022 Capital Plan and Production Guidance as follows (subject to Board approval):

2022 Capital Plan Summary

¹ 5 Year Operational Strategy Corporate Presentation

Tie Field – Bahia, Brazil

Tie- 2022 Capital Plan

Tie-5 Hz
Tie-5 will be drilled from the GTE-4 pad and completed in the Agua Grande formation. This is a completely re-designed horizontal production well with an electrical submersible pump.

Tie-6
Tie-6 is a dual-zone water injector drilled on the south pad targeting to sweep the southwestern part of the structure

Tie-7
Tie-7 is a dual-zone water injector drilled on the new northwest pad targeting to sweep the northwestern part of the structure.

Tie-3 Conversion
Tie-3 was designed and drilled as a hybrid oil producer, with subsequent conversion to water injection. This conversion will commence earlier than planned and will be carried out with a workover rig during Q1.

Tie Facilities
Capital for the facilities is focused on future well tie-ins, construction of the new northwestern pad and water handling facilities, including injection.

Tartaruga Field – Sergipe, Brazil

Tartaruga- 2022 Capital Plan

TTG-4 Hz
A horizontal production well targeting the Penedo 1 reservoir is now delayed and scheduled to spud towards the end of Q4, 2022 and brought onstream in 2023.

LAK Ranch –Wyoming USA

LAK- 2022 Capital Plan

Production Optimization
The LAK Ranch heavy oil field was shut in at the beginning of the Pandemic in 2020.  No work is planned for 2022 other than regulatory requirements.

Illinois Basin–Illinois and Indiana, USA

IB- 2022 Capital Plan

Wells
Production will continue from the IB area during 2022. 2 gross/1.5 net wells are planned for the year, and these wells are considered to be commitment wells to keep all leases in good standing. Once final results are received from the 2021 drilling program during the first quarter of 2022, further evaluation will occur of the future IB wells.

Mafraq Oil Field, Oman

Oman- 2022 Capital Plan

Farm-Down
A non-binding term sheet has been signed that contemplates a potential farm down of Block-70. This farm down is expected to close during Q1 2022 and all potential production from Block-70 assumes this farm down occurs.

Wells
With the ongoing placement of equipment purchase orders and rig contract negotiations, eight wells are currently planned for 2022. Two of these are appraisal wells, predominantly designed to acquire reservoir data and may not be placed on test production, and the balance are horizontal pilot wells testing Mafraq reservoir deliverability.  

Facilities
A temporary Extended Well Test (“EWT”) package will be procured and constructed to allow extended well test production to commence from the pilot wells.

Production
The Company expects to complete most of the Capital Plan prior to year-end 2022 with the exception of the TTG 4 production well which is planned to be drilled towards the end of Q4 2022/Q1 2023. The exact timing of the operations is dependent upon a number of factors that may be outside Maha’s control, including delivery of long lead items, rig availability, regulatory permitting and logistics which in turn might affect Company’s total annual production.

As such, this preliminary 2022 production guidance, is net to the Company and after Oman farm down (but before government or freehold royalties and/or government production share) and is expressed in the range of 4,000 – 5,000 BOEPD, of which approximately 8% is estimated to be gas².

² Normal units for expressing gas production is m3/day or ft3/day. An average industry conversion factor to barrels does not use a simple volumetric conversion factor from m3 (or ft3) to barrels. Instead the energy produced by burning 1 barrel of oil is equated to the same volume of gas required to produce the same amount of energy. This is of course dependent on the type of gas being burned, but an industry average is that 6,000 standard cubic feet (scf) of gas generate the same amount of energy as 1 barrel of oil.  As such in this and future production guidance 6,000 scf of gas will be equal to 1 barrel of oil equivalent.

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 15:00 CET on December 30, 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

Caution on Forward-looking statements
Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable securities legislation). Such statements and information (together, “forward-looking statements”) relate to future events, including Maha Energy’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and Maha Energy does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading “Risk management” and elsewhere in Maha Energy’s Annual Report. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.

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

The Royalties paid to the Government of Brazil has been reduced from 10% and 9.7% to 7.5% at the Tie and Tartaruga fields respectively. 

The Board of Directors of the Brazilian National Agency of Oil, Natural Gas and Biofuels (“ANP”) has issued a Resolution approving Maha Energy Brasil Ltda.’s (“MEBL”) request of reduction of royalties concerning the Tiê and Tartaruga concession agreements, on the grounds of ANP Resolution No. 853/2021, which regulates this proceeding.

Currently, the amounts of royalties due by the  Tiê and Tartaruga Fields are 10%, and 9,7% respectively. The new royalties due by each of the above-mentioned fields will now be 7,5% as both are operated by MEBL, which is considered a “mid-size company”, in accordance with ANP Resolution No. 32/2014 – since it has an aggregate average annual production of less than 10,000 boe/d  in Brazil and abroad.

An addendum to the Concession Agreements shall be executed by ANP and the concessionaires, that is, only MEBL for the Tiê Field and MEBL and Petrobras for the Tartaruga Field, within 30 days of the above-mentioned notification. It is noteworthy that the new royalties will only be due on the production of the subsequent month of the entering into of the addendum to each of the concession agreements.

It is also important to emphasize that the new royalties will remain effective for the remaining term of the respective Concession Agreements as long as MEBL is considered  a “mid-size company”. The effectiveness of the above-mentioned addendum may also be suspended in the case of non-payment of governmental royalties of any of the fields, as of the month of the production in which such obligations were not paid.

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, 20:15 CET on 28 December, 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

The drilling of the well “Tie-4” is now complete.  A final measured depth of 2,221 m has been reached and the well has now been extensively logged, cased and cemented. The Agua Grande (AG) reservoir was penetrated 6.5m higher than prognosis and yielded 14 m net pay with an average permeability of 600 mD. The Sergi (SG) reservoir, while penetrated lower than prognosis, yielded higher than expected net pay of 6.4m with an average permeability of 282 mD.  Although present in this well, the Itaparica sandstone did not yield any net pay.

Jonas Lindvall, CEO of Maha Energy commented: ”After reconfiguring the Tie-4 well to a standard vertical well, TD was reached without any problems.  Electric logging results are encouraging and displays similar petrophysical properties to the already producing GTE-4 and Tie-2 wells. The well will now be completed using an electric submersible pump and then placed on production.”

Tie-4 Well Electric Logging Results

The Tie-4 well was originally designed as a horizontal well in the Agua Grande reservoir.  Three attempts were made to horizontally land the well, but after getting stuck in the third sidetrack it was decided to reconfigure the well as a conventional vertical well. The problematic Lower Candeais shale overlying the AG reservoir that proved to be unstable at high drilling angles displayed no stability problems in the vertical well.

The information was submitted for publication, through the agency of the contact person set out below, 16:00 CET on 22 December, 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 First North Growth Market (MAHA-A) in Stockholm. FNCA Sweden AB is Certified Adviser and can be contacted at info@fnca.se or +46-8-528 00 399. The head office is in Stockholm, Sweden with a technical office in Calgary, Canada, as well as operations offices in Illinois, USA and Rio De Janeiro, Brazil. For more information, please visit our website www.mahaenergy.ca.

Due to ongoing issues with reactive shales in the wellbore Maha Energy AB has elected to plug back the wellbore and drill a simpler sidetrack to ensure continued production growth at the Tie field. The company does not expect this to impact the completion date of the Tie-4 well significantly nor the Tie annual production for 2021. However, Tie-4 is most likely to be placed on production after the year-end which will affect the 2021 exit production rate estimate of 5,000 BOEPD and 5,500 BOEPD.

• Due to highly reactive shales encountered at drilling angles of greater than 65 degrees, and thus causing issues with wellbore stability the Company has elected to plug the well back to the 9 5/8” casing shoe.
• A vertical sidetrack will be drilled from the 9 5/8” shoe targeting both the Agua Grande and Sergi reservoirs.
• The well will be completed as a dual zone commingled Electric Submersible Pump completion.

Jonas Lindvall, CEO of Maha Energy comments: ”We are obviously disappointed with the challenges we have encountered in this well. Although these types of well design are common in North America we are applying this as new technology to the Tie field and this is the first attempt targeting these zones. We are confident that we will succeed in due course. In the meantime we can apply a tried and tested approach and continue Tie-4 as a vertical well to commence production as soon as possible. Hopefully before year-end, but most likely in the beginning of next year.”

¹   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 persons set out below, at 16:35 CET on 30 November, 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