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Maha Energy AB (publ) (“Maha” or the “Company”) announce discovery of potentially new oil-bearing formation in the Tie field and reaching Total Depth (TD) of the Tie-3 well.

Well TD was reached at a Measured Depth (MD) of 2,336 m.  Electric logging reveals 11 m. “net pay” in the Agua Grande (AG) formation, 3.1 m net pay in a new potentially productive zone at the base of the Itaparica formation and 1.6 m net pay in the Sergi (SG) formation. 

Jonas Lindvall, CEO of Maha Energy commented: “Structurally, the Tie-3 well came in exactly how we planned it.  What appears to be a new oil productive transitional zone at the base of the Itaparica and the top of the Sergi is very encouraging and is something we have not seen in any of the other Tie wells. The Tie-3 well will eventually be turned into a flank water injector, but right now it will be completed and placed on production.”

Tie-3 was spudded on December 18, 2020 with an objective to intersect the oil water contacts of both the AG and SG at the western edge of the field.  Total Depth (TD) of 2,336 m (MD) was reached on March 16, 2021.  Drilling operations were delayed due to poor hole conditions and extensive repairs of the drilling rig’s derrick. The well is initially planned to be an oil producer and later, as water cut increase, it will be converted to a water injector to support the fields reservoir pressure and increase the field’s ultimate oil recovery.

During electric logging operations, oil bearing rock was discovered above the SG formation at the base of the Itaparica formation.  The Company will continue to evaluate this new find. It is too early to determine the impact of this find on the Tie field oil volumes, if any.

Reservoir Properties Agua Grande Itaparica/Sergi
Depth (TVD SS)
Gross Thickness (m)
Net Pay (m)
Average Porosity (%)
Average Permeability (mD)
-1917
19.3
11.0
18.4
675
-2038
29
4.7
14.4
68

The well will now be cased off, cemented, completed and placed on production.  Flowlines are already in place to handle the production from this well.

“We are very excited with the Tie-3 outcome.  This step out well confirms the Company’s interpretation of the Tie structure, and we are particularly pleased with the reservoir properties of the AG and the new oil find at the base of the Itaparica” said Jonas Lindvall. 
It is too early to determine the effect of the Itaparica find, if any, on the Tie field reserves.

This information is information that the Company 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, 22:00 CET on 21 March, 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”) announce updated 5 year operational strategy

Maha Energy AB has updated its previously published 5 year operational strategy presentation on its website.  The update is made to reflect the recently announced information, including but not limited to the 2021 Capital Plan and Production Guidance, 2020 year end reserves, 2020 year end results and the acquisition of Block 70 in Oman.

The information was submitted for publication, through the agency of the contact person set out below, at 23:55 CET on 8 March, 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 Announce Filing of Fourth Quarter Report 2020 & Live Webcast

Maha Energy AB Announce Filing of Fourth Quarter Report 2020 & Live Webcast

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

Fourth Quarter 2020

  • Daily oil & gas production averaged 2,738 BOEPD (Q4 2019: 3,165 BOEPD)
  • Revenue of USD 8.7 million (Q4 2019: USD 13.7 million)
  • Operating netback of USD 4.2 million or USD 17.66 per BOE (Q4 2019: USD 9.8 million or USD 35.00 per BOE)
  • EBITDA of USD 2.7 million (Q4 2019: USD 8.4 million)
  • Net result of USD -15.7 million, following the previously announced impairment charge of 21.0 million for LAK Ranch (Q4 2019: USD 2.7 million)
  • Basic earnings per share of USD -0.15 (Q4 2019: USD 0.03)
  • Diluted earnings per share of USD -0.15 (Q4 2019: USD 0.02)
  • The Company was awarded new exploration block 70 (Mafraq) onshore Oman
  • Drilled and completed the Tie-2 well in the Tie Field and spudded the Tie-3 well on 18 December 2020
  • 2P Reserve Replacement Ratio for 2020: 380% (Q4 2019: 147%)
  • The Company grew its Proven (“1P”) reserves by 183% increase 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
  • The Company transferred its listing and began trading on Nasdaq Stockholm main market (MAHA-A.ST) on 17 December 2020

      
      
Full Year 2020

  • Daily oil & gas production averaged 3,301 BOEPD (2019: 3,044 BOEPD).
  • Revenue of USD 39.0 million (2019: USD 55.6 million)
  • Operating netback of USD 23.5 million or USD 20.06 per BOE (2019: USD 41.5 million or USD 38.96 per BOE)
  • EBITDA of USD 18.1 million (2019: USD 35.9 million)
  • Net result for the period of USD -10.3 million, following the earlier announced impairment charges of 21.0 million for LAK Ranch (2019: USD 19.7 million)
  • Basic Earnings per share of USD -0.10 (2019: USD 0.20)
  • Diluted Earnings per share of USD -0.10 (2019: USD 0.18)
  • Cash and cash equivalents balance of USD 6.7 million (2019: 20.4 million)

 

      
Financial Summary

(TUSD, unless otherwise noted) Q4
2020
Q3 2020 Q2 2020 Q1 2020 Q4 2019 Full Year 2020 Full Year 2019
Net Daily Production (BOEPD) 2,738 3,580 3,602 3,288 3,165 3,301 3,044
Revenue 8,659 11,226 7,926 11,207 13,672 39,018 55,589
Operating netback 4,247 7,041 4,377 7,858 9,825 23,523 41,539
EBITDA 2,720 5,514 3,436 6,434 8,354 18,104 35,868
Net result for the period1 (15,702) 1,845 407 3,191 2,679 (10,259) 19,654
Earnings per share – Basic (USD) (0.15) 0.02 0.00 0.03 0.03 (0.10) 0.20
Earnings per share – Diluted (USD) (0.15) 0.02 0.00 0.03 0.02 (0.10) 0.18
Cash and cash equivalents 6,681 18,034 15,699 19,190 22,450 6,681 22,450

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

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

A combination of unplanned events during the last quarter of 2020 made it a challenging quarter for the Company.  First, the Covid-19 postponement of drilling Tie-2 and Tie-3 meant costly deferment of production for the year.  Second, two stuck pipe incidents on the Tie-2 well caused unwanted expenditures and further delays in production additions.  Third, the unexpected temporary loss of the free-flowing Tie-1 Agua Grande (AG) zone caused further production loss during the fourth quarter.  Lastly, the continuing and problematic GTE-4 workover at Tie required multiple rig interventions that resulted in higher workover costs and even more delay of production. All these events conspired against the production plan for the quarter and indeed the full year of 2020. 

Despite this, Maha finished 2020 with a record year in terms of annual average production (albeit below our expectations) and positive operations cash of USD 19 million.  With a 2020 CAPEX outflow of approximately USD 20 million (excluding acquisitions), it meant that the Company was close to being self-funded for the year – which is outstanding given the impact Covid-19 incurred on oil price, logistics and personal health.  

Towards the end of 2020, the Tie-2 well was finally completed and flowed over 2,000 BOEPD which was well above expectation.  Furthermore, the AG zone came in structurally higher than expected, and the reservoir pressure was also higher than anticipated at this location.  Both very positive outcomes.  Tie-1 (AG) production was also restored at the year end, and the GTE-4 well was finally completed after several months of multiple interventions.  During January, the GTE-4 well was flow-tested, and is now awaiting a dedicated quintuplex pump to be installed.  Two long lead time quintuplex pumps were ordered in April last year in anticipation of reduced flowing pressures at Tie-1 and Tie-2.  Both those pumps are now in the field undergoing hook up and commissioning. Whilst GTE-4 is awaiting pump installation, the Tie field is ‘missing’ about 500 BOPD production.

The drilling of the Tie-3 well is expected to be completed during the current quarter.  At the moment, and without the contribution of GTE-4, the Tie field is producing around 3,100 BOEPD, so Tie-3 will be a welcome addition to the current production volumes at Tie.  Upon completion of Tie-3, the drilling rig will be moved to the GTE-4 pad where it will drill the field’s first horizontal well (subject to licensing).  Once the horizontal well is drilled, completed and hooked up, the Tie field will have important spare production capacity to cater for any future unplanned production interruptions.

Also during the fourth quarter, Maha was admitted to Nasdaq Stockholm, which is something very beneficial for the Company.  The process was long but useful.  The Company’s very robust corporate governance is now even more robust.   The current ESG climate and the anti-fossil energy sentiment in Scandinavia is a challenge for all fossil-energy sector related companies and it is envisaged that being listed on the ‘main board’ will reaffirm to investors that ESG is deeply rooted in the organization.  Having said that, Maha Energy is an international oil and gas production company that produce oil, gas and energy in an industry that currently provide 85% of all global energy needs.  As such, Maha is proud to be considered one of the ‘good guys’ in that we bring expertise and technology to extract already existing hydrocarbons that might otherwise be left behind. And on top on that – none of the resources Maha produce are wasted.  In Brazil, for example, the associated gas produced there is separated, cleaned and converted to energy for use in homes and industries.  The produced water is also separated, cleaned and reused at most of the sites to re-invest in reservoir energy, thereby increasing the recovery factor of the fields.

Whilst 2020 was challenging year for Maha, it was also a year where Mafraq (Oman) and Illinois Basin (USA) were added to the asset portfolio.  Both these assets are high quality – low risk – assets that have added some 3 million barrels of 2P reserves and over 22 million barrels of Contingent Resources.  The 2020 2P reserve replacement ratio of 380% is excellent, clearly indicating Maha now has a very strong foundation to build on.

2021 has already started out on several positive notes; the oil price is up over 50% since the lows of Q4 production has been across all key assets and the Company has laid the foundation for serious production growth in all the core areas of Brazil, Oman and the USA. 

My fellow shareholders, colleagues, and friends, it feels like we are on the doorstep to brighter times.  Thank you for your continued support and lastly, a big thank you to all Maha employees that I know work so hard for all of us!

Stay healthy. Care for each other and stay safe.
Yours truly,

Jonas Lindvall
Managing Director

Q4 Webcast today at 16:00 CET

There will be a live webcast today, 26 February 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 3:00a.m. CET on 26 February, 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


 

Maha Energy AB (Publ) Continuation and expansion of mandate

Maha Energy AB (“Maha” or the “Company”), as a continuation and expansion of the mandate announced the 26th of October 2020, is exploring options for refinancing its existing SEK 300m senior secured bond maturing 29 May 2021. Maha has appointed Arctic Securities AS and SpareBank 1 Markets AS as exclusive managers and advisors in this regard.

Miscellaneous
The information was submitted for publication, through the agency of the contact person set out below, at 08.00 CET on February 8, 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) announce its 2021 Capital Plan and Production Guidance

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

Field Capital 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)
Q2 Maintain Tie field long term production plateau

 

Tie New Well
Tie-5
Q3 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
IB 4 New Wells Q2 –Q3 Commitment wells
Mafraq None N/A Preparatory work
LAK None N/A No planned investments during 2021

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 2nd 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 (Publ) announce preliminary agreement on terms for future financing and enters into exclusivity period

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 (Publ) announce LAK Ranch book value impairment

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 announce December 31, 2020 Reserve Report and Resource Report

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

2020 Maha Energy AB Company Gross Reserves before income tax
(million barrels)
  Tie Tartaruga2 Illinois Basin Oman LAK Total
1P 16.85 6.32 2.29 0.25 0.11 25.82
2P 19.85 11.45 3.55 0.97 8.81 44.64
3P 25.43 16.51 4.45 2.04 14.24 62.66

2020 Maha Energy AB Company Gross Conventional (Sales) Natural Gas Reserves before income tax
(billion SCF)
  Tie Tartaruga2 Illinois Basin Oman LAK Total
1P 11.84 3.10       14.93
2P 13.98 5.61       19.59
3P 17.97 8.09       26.06

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:

2021 2022 2023 2024 2025 2026 2027
$50.00 $52.00 $54.00 $55.08 $56.18 $57.31 $58.45

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.

Maha Energy AB (publ) (“Maha” or the “Company”) announce change in the number of shares and votes in the Company and contracts Lago Kapital Ltd to replace Penser Bank AB as liquidity provider

The number of shares and votes in Maha Energy AB (publ) has increased following the issue of 317,201 new shares during January through the exercise of 180,238 warrants of series 2017/2020 issued under the incentive programme adopted at the annual general meeting held in 2017, and the exercise of 136,963 warrants of series TO 2 A.

As of 29 January 2021, the total number of shares in the company amounts to 101,947,252, out of which 101,463,886 are A-shares and 483,366 are B-shares. Each share carries one vote, and the total amount of votes as of 29 January 2021, is 101,947,252. The company’s registered share capital amounts to SEK 1,121,419.772.

Further, the Company has entered into a liquidity providing agreement with Lago Kapital Ltd and has provided notice to terminate its existing liquidity provider agreements with Erik Penser Bank AB. The liquidity provider service according to the new agreements with Lago Kapital Ltd will be effective starting 1 February 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

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 10:45 CET on 29 January 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

Maha Energy AB (publ) (“Maha” or the “Company”) Announce December Production Volumes and Change in Production Reporting Periods

Production Volumes
The Company's aggregate sales production for the month of December totaled 88,2051 barrels of oil and 48.062 million scf of gas for a combined average production of approximately 3,105 BOE/day2, before royalties and taxes.  Production progressively increased during the month as well servicing and tie in activities were completed. The total corporate production on the last day of 2020 was 4,112 BOEPD.

The Tie-2 well was connected to the Tie production facilities mid-December with the previously press released better than expected rates (19th December 2020 Press Release) continuing to month end. Continued optimization work is still ongoing with the artificial lift system running GTE-4 and Tie -1 which in turn required them to be shut-in at times during the month.

In line with the Company moving to the Nasdaq Stockholm Main Market, and subsequent tightening corporate governance requirements, this will be the last monthly production volume press release.  Future production volumes will be disclosed in the Quarterly Reports.

The information was submitted for publication, through the agency of the contact person set out above, at 18:40 CET on 5 January 2021.

1   Subject to minor standard industry adjustments at the time of custody transfer.
2   Barrels of oil equivalent ("BOE") conversion ratio of 6,000 scf: 1 bbl is used.

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.