Maha Energy AB (“Maha” or the “Company”) expects to allocate approximately USD 26 million on capital projects during 2021 and estimates the corporate average annual production to be between 4,000 – 5,000 BOEPD*.  The 2021 Capital Plan will be funded through internal cashflows and a contemplated future financing.

The Company is pleased to provide details of its 2021 Capital Plan and Production Guidance as follows:

2021 Capital Plan Summary- Total Budget ~USD 26 Million

Tie Field – Bahia, Brazil

Tie- 2021 Capital Plan

Tie-3
Tie-3 is a dual oil producer drilled on the western flank of the Tie structure.  This well was originally planned for Q4 2020, but due to operational delays on Tie-2, this well was not started until late 2020.  This well will eventually be converted to a water injector.

Tie-4
Tie-4 is earmarked to be the field’s first horizontal well.  The well will be drilled from the GTE-4 pad and completed in the Agua Grande formation.  This well is under license review by the Brazilian authorities.  License approval is expected sometime in the 2^nd quarter of 2021.

*  BOEPD: Barrels of Oil Equivalents Per Day

Tie-5
Tie-5 will be drilled on the southern flank of the Tie structure as a water injector to maintain reservoir pressure and increase oil recovery.

Tie Facilities
The Tie facilities are all but complete, and the capital earmarked for the Tie facilities include tie-in work (flow lines and manifolding) for the new wells.  Additional work includes automation of the plant and minor punch-list items.

Tartaruga Field – Sergipe, Brazil

Tartaruga- 2021 Capital Plan

Facility Upgrade
With the recent results from the TTG-3 well only minor work will continue during 2021 to upgrade the production facilities at Tararuga to handle up to 2,500 BOPD and 2,500 MSCFPD of gas.

LAK Ranch –Wyoming USA

LAK- 2021 Capital Plan

LAK Ranch
The LAK Ranch heavy oil field was shut in at the beginning of the Pandemic in 2020.  No work is planned for 2021 and the field will remain shut in until oil prices recover.  Whilst the Reserves valuation continues to point towards a full field development with lower but yet positive net present value, even at the current depressed oil prices, the Company maintains better yielding investments in Brazil, Illinois Basin and Oman

Illinois Basin (IB)–Illinois and Indiana, USA

IB- 2021 Capital Plan

Wells
Production will continue from the IB area during 2021.  4 wells are planned for the year, and these wells are considered to be commitment wells to keep all leases in good standing.

Mafraq Oil Field, Oman

Oman- 2021 Capital Plan

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

Production

The Company expects to complete most, if not all, of the Capital Plan prior to year-end 2021.  The exact timing of the operations is dependent upon a number of factors including delivery of long lead items, rig availability, permitting and logistics which in turn might affect Company’s total annual production.  Continuing effects of the Covid-19 Pandemic is expected to affect the timing of the Capital Plan and the 2021 Production Guidance.  

As such, this 2021 Production Guidance, net to the Company (but before government or freehold royalties) is expressed in the range of 4,000 – 5,000 BOEPD*, of which approximately 8% is estimated to be gas.  The guidance assumes continuing indirect effects of the Covid-19 Pandemic, such as logistical impediments due to reduced border access and depressed commodity prices.  As the global pandemic eases and restrictions are reduced, the Company expects an increase in activity which in turn may affect the production guidance positively.

The Company estimates its Operating costs for 2021 (including oil transportation costs), to range between $7 and $8 per BOE applying the production guidance range provided above.

Funding of 2021 Capital Plan

2021 Capital Plan Budget
The 2021 Capital Plan has a total budget of ~USD 26 million for the above incremental projects and is expected to be funded fully through a combination of operating cash flow and proceeds from financing.

*  BOEPD: Barrels of Oil Equivalents Per Day

¹ 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.

Miscellaneous
The information was submitted for publication, through the agency of the contact person set out below, at 22:05 CET on February 4, 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

Maha Energy AB ("Maha" or the "Company") is pleased to announce that it has signed a term sheet with a banking institution with experience in the Brazilian E&P sector for future financing to support the growth of the Company (the “Financing”).  The completion of the Financing is subject to customary due diligence and final documentation, and the Company has granted an exclusivity period of 55 days to finalize due diligence and documentation. During this period, the Company retains the right to discuss a potential refinancing of its SEK 300 million bond with existing bondholders.

The net proceeds from the contemplated Financing will be used to refinance the existing bond debt, finance capital expenditures across Maha’s portfolio and general corporate purposes.

Pareto Securites AS is acting as sole financial advisor and Setterwalls is acting as legal advisor to Maha in conjunction with the Financing.

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 22:00 CET on February 4, 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

Maha Energy AB ("Maha" or the "Company") will incur a write down of the book value of its LAK Ranch heavy oil field in Wyoming, USA, on the Company’s balance sheet by approximately USD 20 million, subject to year-end audit review. This will be reflected in adjusted earnings in the fourth quarter 2020 results to be reported on 26 February 2021.

The LAK Ranch heavy oil asset was shut in at the beginning of the 2020 Covid-19 Pandemic and will remain shut in until oil prices recover.  Whilst the Reserves valuation continues to point towards a full field development with lower but yet positive net present value, even at the current depressed oil prices, the Company maintains better yielding investments in Brazil, Illinois Basin and Oman – making it less likely that LAK Ranch will be developed in the near future. 

The lower recoverable amount was a result of decreases in forecasted commodity prices and in accordance with IFRS principles, the Company will recognize a non-cash impairment charge with no impact on operating cash flow or EBITDA.  

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 20:20 CET February 4, 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

Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce the 2020 reserve report and contingent resource booking with the following highlights:

• 2020 Reserve Replacement for 2P Reserves is 380%
• Proven Reserves increased by 183%
• Proven plus Probable (2P) reserves increased by 14%
• Contingent Resources (2C) booked at 22.3 million barrels in Oman (Mafraq)

Chapman Petroleum Engineering Ltd. (“Chapman”) has completed their annual reserve determination for the Company. Maha is pleased to announce a 183% increase in Proven (“1P”) reserves driven by successful movement of volumes from the Proved plus Probable (“2P”) category and acquisitions in the USA and Oman. The 2P oil reserves are also up by approximately 14% compared to year end 2019, primarily due to acquisitions and improvement in forecast recoveries by utilizing horizontal development wells. Overall reserve replacement ratios were very strong with 1P Reserve Replacement ratio of 1,428% and 380% on 2P.

Maha Reserves¹ as of 31 December, 2020

The main changes to this year’s reserve volumes are:

• 17.4 million-barrel of oil equivalent (“BOE”) increase in P90 (1P) reserves primarily in Brazil but with additions in Oman and the USA.
• 4.8 million barrels increase in P50 (2P) reserves in Tie, Illinois Basin and Oman (spread across Tie, Illinois Basin and Oman).

The increase of the P90 (proven) reserves at the Tie Field are due to the completion of a full field simulation model that showed horizontal development as being a very attractive development approach. This allowed Chapman to move some significant volumes from 2P to 1P based on the planned drilling in Tie this year. The Oman (0.97million) and Illinois basin (3.55million) additions to our portfolio have allowed us to add 4.52 million barrels of 2P reserves outside our largest asset base in Brazil.

[1] Volumes are Gross Working Interest volumes and are expressed before royalties 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 the reserves assume that the extension will be granted.  Maha has a 75%WI 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 $1.12USD/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 our 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% 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.

About Reserves

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on:

• analysis of drilling, geological, geophysical, and engineering data,
• the use of established technology, and
• specified economic conditions, which are generally accepted as being reasonable, and shall be disclosed

Reserves are classified according to the degree of certainty associated with the estimates.
Proved reserves (P90) are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves (1P).

Probable reserves (P50) are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved + probable reserves (2P).

Possible reserves (P10) are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved + probable + possible reserves (3P).

About Contingent Resources

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development (TUD), but which are not currently considered to be commercially recoverable due to one or more contingencies. There is uncertainty that it will be commercially viable to produce any portion of the resources.

Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status.

Contingencies may include economic, environmental, social and political factors, regulatory matters, a lack of markets or prolonged timetable for development. Contingent Resources have a Chance of Development that is less than certain.

Project Maturity Sub-Classes are: Development Pending, Development on Hold, Development Unclarified and Development Not Viable.

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 20:15 CET on February 4, 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 Company is pleased to announce that the recently completed Tie-2 well is free flowing oil and gas at a rate of 1,825 BOPD and 1,083 MSCFPD (2,005 BOEPD¹) on a 1-1/2” choke with a stable tubing-head flowing pressure. A follow up well west of Tie 2, Tie-3, was spudded on 18^th  December and is expected to take about 60 days to drill and complete.  The completion issues with the GTE-4 well have been rectified and the well is now being cleaned up and flowing oil and gas to the Tie Production Facilities.

Jonas Lindvall, CEO of Maha Energy commented “The Tie-2 well is delivering oil rates above expectations and with the issues with the GTE-4 completion now behind us we are finally heading in the right direction in Brazil.  We now leave 2020 behind us and look forward to a strong start to 2021 underpinned by a solid production capacity.”

Tie-2 (Tie Field)
The Tie-2 well (7-TIE-2D-BA) has now been tied into the production facilities at Tie.  Both the Agua Grande (AG) and Sergi zones are perforated and are now comingled in a 2-7/8” single tubing completion.  Initial free flow test results over a 24 hour period are as follows:
Oil Production                                                    : 1,825 BOPD
Water Production                                              : 37 BWPD
Gas Production                                                  : 1,083 MSCFPD
BOEPD                                                                 : 2,005 BOEPD
Choke Size                                                           : 1-1/2”
Flowing Wellhead Pressure                             : 170 psi

Tie-3 (Tie Field)
The Tie-3 (7-Tie-3D-BA) well is being drilled on the western flank of the Tie Field.  The well is expected to take around 60 days to drill and complete.

GTE-4 (Tie Field)
The troublesome workover was completed on 17 December, and is now hooked up to the production facilities as a comingled producer.

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

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 09:00 CET on December 19, 2020.

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

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

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 basins 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.

The testing of the Tartaruga well “Maha-1” is now complete.  Although primarily a delineation well, the well test results indicate a lower than expected oil production rate. Furthermore, the second wave of Covid-19 continue to directly impact logistics and personnel movements in Brazil, that in turn are causing delays in the Company’s fourth quarter Brazilian well completions programme. Therefore, the Company expects the 2020 annual average production volume to land at 3,250 BOEPD (previously communicated 3,700 – 4,000 BOEPD). The Company also expect that the previously communicated year-end exit production numbers will be affected due to the combined effects of the above reasons.

Jonas Lindvall, CEO of Maha Energy commented: ”The Maha-1 well was drilled to further delineate the Tartaruga structure and although we have proven oil in a new part of the structure, the effect of lower than expected permeability in this part of the field is disappointing. We will now have to integrate this information into the field model to determine how we can use this data to better place future production wells. The lower than expected production rates, combined with the operational delays in Brazil will unfortunately have a direct impact on the annual average production volumes. Until the well completions work at the Tie field is finished, we are unable to provide an update for the year-end production rates.”

7-TTG-3D-SES (Maha-1) Well Test Results
A total of four different sands were tested in the well. Two sands (P23/22) were tight and failed to flow any fluids, one sand (P19) flowed non-commercial amounts of oil and the P1 is being rerouted to the Production Facilities to undergo further testing.

The P1 sand is flowing oil with a unexpectedly high percentage of water, which is appears to be slowly declining. The Schlumberger test skid is now being demobilized and the well will be placed on long term test through the Maha facilities. Due to the high water cut, testing of the P1 took longer than anticipated and that in turn has impacted Tartaruga production negatively.

The 7-TTG-3D-SES well was spudded on July 12, 2019 and total depth reached on October 3, 2019. A smaller workover rig was brought in to test up to five intervals in the well.  Testing started on 26 January 2020 and was temporarily suspended on 22 March, 2020 due to effects of the Covid-19 pandemic. Testing resumed on 26 October 2020 and has now been completed.

A total of four intervals were tested, and the results are as follows:

Interval           Depth (m)                                 Result                                                                                                                     
Penedo-23     3,494 – 3,495                             No flow – formation tight
Penedo-22     3,477 – 3,479                             No flow – formation tight
Penedo-19     3,376 – 3,393                             Minor oil and gas (< 50 BOPD)
Penedo-1       2,908.5 – 2,918.5                       Oil and Water (~ 140 BFPD) with high water cut

The well was drilled in a different part of the structure to further delineate the Tartaruga structure and preliminary interpretation is that the area now tested, although oil bearing, suffers from lower permeability than expected.  The Tartaruga structure was discovered in 1994 by Petrobras and has produced over one million barrels of oil from two producing wells, both completed in the P1 and P6 sandstones.  The structure is heavily faulted, and each fault compartment may be charged differently and have different reservoir rock properties. The sands are continuous across the delineated area and exhibit similar porosities, however, there are permeability differences across the field. 

Work will now focus on understanding which areas of the structure is commercially productive before further capital is deployed to the Tartaruga field.

Operational update

GTE-4
The workover to restore the Agua Grande (AG) zone to production in this well continues.  The workover has been problematic and the lost production from this zone has impacted the total production volumes for the year.  Once the workover is completed, this well is expected to contribute positively to the 2021 production numbers.  During the workovers the Sergi production has been shut in.  The loss of production from GTE-4 during 2020 is one of the main reasons for the lower 2020 average production numbers.

Tie-1
The Tie-1 well was shut in temporarily in October to allow for new flowlines to be hooked up and tested.  When the well was brought back on stream, the AG did not reach pre shut-in production volumes.  A workover rig was brought in to restore production, and the well was put back on pump on November 23^rd. To date the AG zone is cleaning up as expected.

Tie-2
This new well was completed and rig released December 6^th. The drilling rig is currently 90% moved off the Tie-2 well and once clear of the well, Tie 2 will be tested and hooked up to the permanent production facilities.  Due to Covid-19, it was decided to delay the spud of this well by 6 months, which in turn has impacted the Company’s yearly average production numbers negatively.

Tie-3
The drilling rig is now being moved to this new well to be drilled on the same pad as Tie-2 and it is expected that this well will spud very soon.

Illinois Basin
Three new wells have been completed in the Illinois Basin during the fourth quarter.  All three wells are at various stages of clean up, and once fully cleaned up these wells will add approximately 100 – 130 BOPD of additional production.

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

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 above, 15:30 CET on 14 December, 2020.

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.