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Production and operation update January 2024

on 9 de February de 2024 9 de February de 2024

Maha Energy AB (publ) (“Maha” or the “Company”), announces the preliminary unaudited net production data for January 2024.

	Daily average production (boe/day)*
Assets	Q3-23	Q4-23	FY-23	Dec-23	Jan-24
Papa Terra cluster*	1,214	1,535	1,227	1,715	1,588
Peroá cluster*	560	516	518	516	510
Illinois Basin	179	166	197	144	317
Total	1,953	2,217	1,942	2,375	2,415

Papa Terra cluster
Production at the Papa Terra cluster decreased 7% from December 2023 to January 2024, mainly as a result of scheduled shut down of operations in end of January for the connection of well PPT-12 to the production system. In addition, the work with replacing the ESP-pumps in wells PPT-50, PPT-17, and PPT-37 has been initiated. These interventions are expected to limit the production capacity until mid-April and are in line with the necessary requitements to guarantee production stability and operational efficiency planned for operation in 2024.

Peroá cluster
Production at the Peroá cluster decreased 1% from December 2023 to January 2024 as a result of the sale of the natural gas volume outlined in the take-or-pay contract, lower than the asset’s current production capacity, aligned with the market demand in January.

Illinois Basin
Production at Illinois Basin increased 120% from December 2023 to January 2024. The increased production follows the launch of two new production wells. The completion and production initiation of the third new well, the Ziliak 34-1 well, have however experienced a slight delay due to adverse weather conditions.

Maha’s Assets
Maha has an indirect working interest of 15% in the Peroá cluster and 9.375% in the Papa Terra cluster, with 3R Petroleum Offshore S.A. being the operator. Maha is also the operator holding 97% working interest in the Illinois Basin. In addition, Maha announced in January that the Company acquired 5% of 3R Petroleum Óleo e Gás S.A. (“3R Petroleum”). 3R Petroleums’ total production amounted in January 2024 to 47,180 boe/day, in line with the production in December 2023.

* Note: The information included hereunder relates only to Maha’s entitlement on Peroá and Papa Terra clusters’ production, considering its indirect participation interest on said assets. It was calculated based on the information made public by 3R Petroleum. The production from Peroá and Papa Terra clusters are not consolidated in Maha’s financial reporting. Maha’s share of results from the clusters are instead reported as Income from investment in associate. Maha’s acquisition of the assets was completed on May 23, 2023.

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 a global basis. Maha holds direct and indirect interests in producing assets in Brazil and the United States, and in an exploration asset in the Sultanate of Oman. The shares are listed on Nasdaq Stockholm (MAHA-A).

For more information, please visit Maha’s corporate website www.maha-energy.com.

Production and operation update January 2024

Maha Energy requests an EGM in 3R Petroleum

on 8 de February de 2024 8 de February de 2024

Maha Energy AB (publ) (“Maha” or the “Company”) has sent a request to the board of directors of 3R Petroleum Óleo e Gás S.A. (“3R Petroleum”) to convene an extraordinary shareholders’ meeting to resolve upon a new board of directors. Maha is a shareholder with five percent (5%) direct equity interest in 3R Petroleum.

Maha proposes that a general meeting in 3R Petroleum resolves on a reduction of the number of Directors from seven (7) to five (5), on a new-election of Paulo Thiago Mendonça (chairman of Maha) and Fabio Vassel (board member of Maha) and re-election of Guilherme Affonso Ferreira, Paula Kovarsky Rotta and Harley Lorentz Scardoelli for a term of office of two years. Maha’s opinion is that the suggested changes shall positively contribute to the corporate governance of 3R Petroleum and to the achievement of the results aimed by the shareholders.

Maha is a shareholder of 3R Petroleum holding 12,019,184 shares, corresponding to five percent (5%) of 3R Petroleum’s capital stock. Maha published on January 17, 2024, a public letter to 3R Petroleum’s board of directors, detailing Maha’s objectives with the investment in 3R Petroleum, and outlining the initiation of a consolidation plan within the Brazilian onshore segment, followed by the separation of 3R Petroleum's offshore assets.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Maha Energy requests an EGM in 3R Petroleum

Maha Energy replaces derivative instrument with 5% direct equity interest in 3R Petroleum

on 7 de February de 2024 7 de February de 2024

Maha Energy AB (publ) (“Maha” or the “Company”) has replaced the derivative instrument previously announced with a direct equity interest in 3R Petroleum Óleo e Gás S.A. (“3R Petroleum”). In addition, as a consequence of the capital increase in 3R Petroleum in January 2024, Maha has acquired an additional 19,936 shares, causing Maha’s total holdings to reach 12,019,184 shares, corresponding to five percent (5%) of 3R Petroleum’s capital stock. Maha’s direct equity interest in 3R Petroleum has the purpose of contributing to the development and execution of 3R Petroleum’s long-term growth strategies, including participation in the corporate governance of 3R Petroleum by changing the composition of its board of directors.

Maha announced on January 17, 2024, that the Company had acquired a derivative instrument, giving Maha exposure to 11,999,248 shares representing 5% (five percent) of the capital stock of 3R Petroleum, with the purpose to replace the derivative instrument with a direct equity interest and proceed with the proposed transaction published in Maha’s public letter to 3R Petroleum (attached to the press release January 17, 2024). Maha's investment strategy in 3R Petroleum outlines the initiation of a consolidation plan within the Brazilian onshore segment, followed by the separation of 3R Petroleum's offshore assets.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Maha Energy replaces derivative instrument with 5% direct equity interest in 3R Petroleum

Maha Energy acquires 5% of Brazil oil and gas company 3R Petroleum

on 17 de January de 2024 17 de January de 2024

Maha Energy AB (publ) (“Maha” or the “Company”) has acquired a derivative instrument, giving Maha exposure to 11,999,248 shares representing 5% (five percent) of the capital stock of 3R Petroleum Óleo e Gás S.A. (“3R Petroleum”) for a total consideration of approximately USD 69 million. Maha has today informed 3R Petroleum about this acquisition. Attached to this press release, there is also a letter sent today by Maha to 3R Petroleum’s board of directors, detailing our objectives with this investment and outlining Maha’s enhancement proposals for 3R Petroleum.

Maha’s acquisition of shares in 3R Petroleum is conducted in two steps. In the first step, Maha has entered into, with a financial institution, a derivative instrument (equity linked note), which provides Maha with an economic exposure to 11,999,248 shares representing 5% (five percent) of the capital stock of 3R Petroleum. Subsequently and as a second step, the purpose is to replace the derivative instrument with a direct equity interest.

“This represents a strategically motivated, long-term investment on our part. The management and the board of directors in Maha have been intimately involved in the founding and early growth of 3R Petroleum. Consequently, we possess a profound understanding of the value residing within 3R Petroleum's assets. Maha's investment strategy in 3R Petroleum outlines the initiation of a consolidation plan within the Brazilian onshore segment, followed by the separation of 3R Petroleum's offshore assets,” says Kjetil Solbraekke, CEO of Maha Energy.

Our strategic objectives are detailed in the attached Letter.

Maha will present the investment at a webcasted presentation tomorrow, January 18 at 14:30 CET.

Link to webcast: https://itau.zoom.us/webinar/register/WN_-wS3DktbTPS-CLp9RoMCUQ

About 3R Petroleum
3R Petroleum (RRRP3:SAO) is a publicly traded Brazilian oil and gas company, listed on B3 (Brazilian Stock Exchange). Production in December 2023 amounted to approximately 46,000 barrels of oil equivalents per day. 3R Petroleum reported 2P reserves of 516 MMboe as per year end 2022. The market value of the company amounts as per January 15, 2023 amounts to about USD 1,400 million. Maha has since May 23rd, 2023, a participation interest of 15% in 3R Petroleum’s offshore subsidiary 3R Offshore.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Maha Energy acquires 5% of Brazil oil and gas company 3R Petroleum

Public Letter To 3R BoD

Production and operation update December 2023

on 8 de January de 2024 8 de January de 2024

Maha Energy AB (publ) (“Maha” or the “Company”), announces the preliminary unaudited net production data for December 2023.

	Daily average production (boe/day) in 2023*
Assets	Q3-23	Oct	Nov	Dec	Q4-23	Full Year-23
Papa Terra cluster*	1,214	1,527	1,359	1,715	1,535	1,227
Peroá cluster*	560	509	524	516	516	518
Illinois Basin	179	180	173	144	166	197
Total	1,953	2,216	2,056	2,375	2,217	1,942

Papa Terra cluster
Production at the Papa Terra cluster increased 26% from November to December 2023 as a result of improved operational efficiency in the asset and the successful connection of the PPT-22 well in the first week of December. The second well intervention in the Papa Terra Field (well PPT-12) was completed ahead of schedule in the beginning of January 2024. The PPT-12 is expected to start production at the end of January, after necessary adaptations to the FPSO processing systems have been completed. These activities may result in a temporary interruption of Papa Terra Field production for up to five days. This work will also enhance the efficiency of processing fluids produced by all other wells.

Peroá cluster
Production at the Peroá cluster decreased 2% from November to December 2023 as a result of the sale of the natural gas volume outlined in the take-or-pay contract, in addition to the surplus traded, aligned with the market demand in the December.

Illinois Basin
Production at Illinois Basin decreased 17% from November to December 2023. The production decrease was a result of some existing wells being shut-in during the completion of newly drilled wells. In October 2023, Maha commenced a program consisting of three production wells and production battery installation. All three wells have been drilled and two of the wells have been completed. The last well is expected to be completed and start producing in January. Maha’s current production from the Illinois Basin as per 7 January 2024 amounts to 264 boepd.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Production and operation update December 2023

Production and operation update November 2023

on 8 de December de 2023 8 de December de 2023

Maha Energy AB (publ) (“Maha” or the “Company”), announces the preliminary unaudited net production data for November 2023.

Daily average production (boe/day) in 2023*
Assets	Q1-23	Q2-23	Q3-23	Oct	Nov
Papa Terra cluster*	936	1,217	1,214	1,527	1,359
Peroá cluster*	437	560	560	509	524
Illinois Basin	233	211	179	180	173
Total	1,606	1,988	1,953	2,216	2,055

Papa Terra cluster
Production at the Papa Terra cluster decreased 11% from October to November 2023 due to interventions in operational systems and preparatory activities for the connection of a new production well. In the first days of December, a ESP-pump (Electrical Submersible Pump) of well PPT-22 was replaced. The intervention was carried out safely and without incidents in 35 days with the support of the Alpha Star rig. Well PPT-22 started production on December 3, 2023, and is currently in a stabilization period. After the completion of the work, the Alpha Star rig was relocated to the well PPT-12, where the activities of the second planned workover for Papa Terra have already begun.

Peroá cluster
Production at the Peroá cluster increased 3% from October to November 2023 as a result of the sale of the natural gas volume outlined in the take-or-pay contract, in addition to the surplus traded, aligned with the increased market demand recorded in the month of November.

Illinois Basin
Production at Illinois Basin decreased 2% from October to November 2023. In October 2023, Maha commenced a program consisting of three production wells and production battery installation. All wells have now been drilled and the work with completion of the wells is ongoing. The wells are expected to increase Maha’s current production from the Illinois Basin with a production ramp up starting at the end of the year.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Production and operation update November 2023

Maha Energy appoints new COO

on 5 de December de 2023 5 de December de 2023

Maha Energy AB (publ) (“Maha” or the “Company”), is pleased to announce the appointment of Mr. Javier Gremes Cordero as Chief Operating Officer ("COO") of Maha Energy effective immediately. Mr. Gremes has a sound track record both in executive positions and as a regional leader in the energy industry. He has worked the last six months as an exclusive consultant for Maha and is already deeply engaged with the Company’s projects in Venezuela.

Mr. Gremes will replace Mr. Alan Johnson, who leaves Maha in connection with the closing of Maha’s technical office in Calgary, Canada. All functions previously handled by the Canadian office are being transferred to Maha’s office in Rio de Janeiro, Brazil or Maha´s office that is being incorporated in Venezuela.

Mr. Gremes experience covers over 35 years within the oil and gas industry. Before joining Maha as an independent consultant, Mr. Gremes was CEO of Pecom Servicios Energía and CEO of TGS (Argentina). Prior to that, he held the position as Ecuador General Manager for Petrobras and was also part of the internationalization process of Perez Companc with responsibilities over Venezuela. He holds a MSc degree from Université de Management, Switzerland and an MBA degree from Universidad Francisco de Vitoria, Spain.

"I'm very happy to welcome Javier in his new role at Maha. He will strengthen the existing management team with his substantial experience, and we are confident that he will help us achieve our strategic objectives. I would also like to thank Alan for his loyal and dedicated work. Alan has been a key member of our management team for over four years. We wish him the very best of luck in future endeavors," says Kjetil Solbraekke, CEO of Maha Energy.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Maha Energy appoints new COO

Maha Energy Exits Block 70 in Oman

on 1 de December de 2023 1 de December de 2023

Maha Energy AB (publ) (“Maha” or the “Company”) announces the divestment of its 65% working interest in Block 70, Oman, to Mafraq Energy LLC (“Mafraq Energy”). Mafraq Energy is partner in the Block with a 35% working interest. The consideration amounts up to USD 14 million. Mafraq Energy will be responsible for the project and cover all costs as from December 1st, 2023.

Up to the Closing Date, Maha will receive a parcel of the purchase price equivalent to USD 2 million. The earnout will be up to USD 12 million, linked to actual produced volumes from Block 70. It will start to be payable from a cumulative net production volume of 1 million barrels with a maximum to be reached if the production volume reaches 12 million barrels. As from closing date, Maha will be released from all obligations and liabilities regarding Maha Oman, including under and in connection with the EPSA and the JOA.

The exit is subject to signing a definitive sale and purchase agreement, and satisfaction of the relevant closing condition, including approval of the Government of the Sultanate of Oman.

“Block 70 has a high viscosity oil. I believe the project has to consider a heat influx strategy to deal with this. It will require new tests, significant investments and a very dedicated operator, which I believe we will have with Mafraq Energy who has worked on this asset since the very beginning. We wish Mafraq Energy all the luck with their future work on Block 70. Maha will now be able to focus on developing the business in Latin America, where we are especially enthusiastic about our position in Venezuela”, says Kjetil Solbraekke, CEO of Maha Energy.

“Mafraq Energy and Oman value the wealth of experience and work that was injected in Block 70, and we look forward to continuing the project and creation of value for Oman. Mafraq will always value the relations with Maha Energy”, says Talal S. al Subhi, CEO of Mafraq Energy.

Maha was awarded Block 70 in Oman in 2020. In 2022 and 2023, the Company conducted a comprehensive work program and fully concluded the Minimum Work Obligations of the initial phase of the Exploration and Production Sharing Agreement (“EPSA”). A short-term production test commenced in 2023, when five out of eight new drilled production wells produced oil to surface at an initial estimated average rate of 300 barrels of oil per day. The produced oil was heavy with an API of 11-13 degrees and with higher viscosity than pre-testing estimates. Due to the high viscosity, the oil did not meet processing specifications for third party’s facilities. The initial phase of the EPSA will end on 31st of December 2023.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Maha Energy Exits Block 70 in Oman

Maha Energy’s Nomination Committee for the AGM 2024

on 28 de November de 2023 28 de November de 2023

Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce the composition of the Nomination Committee for the 2024 Annual General Meeting (“AGM”) to be held on 29 May 2024 in Stockholm.

The Nomination Committee’s members are:
Rodrigo Pires, representing Turmalina Fundo de Investimento em Participações Multiestratégia
Luis Araujo, representing DBO Invest S.A.
Edwyn Neves, representing Banco BTG Pactual S.A.
Paulo Thiago Mendonça, chairman of Maha Energy AB

The tasks of the Nomination Committee shall be to prepare and submit to the AGM 2024 proposals in respect of:

Number of members of the Board of Directors
Remuneration to the Chairman of the Board of Directors, the other members of the Board of Directors and the auditors, respectively
Remuneration, if any, for committee work
The composition of the Board of Directors
The Chairman of the Board of Directors
Resolution regarding the process of the Nomination Committee 2025
Chairman at the AGM
Election of auditors

Shareholders who would like to submit proposals to the Nomination Committee can do so via e-mail to nomcom@maha-energy.com marked “Proposal to the Nomination Committee” or by ordinary mail to the address: Maha Energy AB, Nomination Committee, Eriksbergsgatan 10, 4tr, SE-114 30 Stockholm, Sweden.

To ensure that the proposals can be considered by the Nomination Committee, proposals shall be submitted in due time before the AGM 2024, but not later than February 28, 2024.

For more information, please visit Maha’s corporate website www.maha-energy.com.

Maha Energy’s Nomination Committee for the AGM 2024

Maha Energy AB Announces Filing of Third Quarter 2023 Report & Live Webcast

on 14 de November de 2023 14 de November de 2023

Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce its third quarter 2023 results. The report is attached to this press release and available on the Company’s website at www.maha-energy.com.

Third Quarter 2023
The amounts below are related only to continuing operations.

Daily oil production for Q3 2023 from continuing operations averaged 179 BOEPD (Q3 2022: 314 BOEPD). In addition, non-consolidated production from investment in associate – 3R Offshore averaged 1,774 BOEPD.
Revenue of 1.3 million (Q3 2022: 2.6 million) following lower sales volumes and lower realized oil price.
Operating netback of 0.5 million (Q3 2022: 1.4 million) following lower sales volumes.
EBITDA of –0.3 million (Q3 2022: -0.2 million).
Net result of -3.4 million (Q3 2022: -3.9 million).
Earnings per share basic and diluted of -0.02 (Q3 2022: -0.03).

Nine Months Ended 30 September 2023
The amounts below are related only to continuing operations.

Daily oil production from continuing operations averaged 207 BOEPD (Nine months 2022: 396 BOEPD). In addition, non-consolidated production from investment in associate – 3R Offshore averaged 1,776 BOEPD.
Revenue of 4.1 million (Nine months 2022: 10.3 million) following lower sales volumes and lower realized oil price.
Operating netback of 1.6 million (Nine months 2022: 5.5 million) following lower sales volumes and lower realized oil price.
EBITDA of -2.3 million (Nine months 2022: 0.9 million).
Net result of -5.7 million (Nine months 2022: -9.0 million).
Earnings per share basic and diluted of -0.04 (Nine months 2022: -0.07).
Total cash balance on 30 September 2023 of 142.8 million (including restricted cash of 47.8 million) (31 December: 19.5 million excluding cash from assets held for sale).

Subsequent Events
Maha Energy signed in October 2023 an exclusive agreement to invest and acquire 24 percent of the indirect equity interest in the Venezuelan oil company PetroUrdaneta.

Financial Summary
The table below presents the highlights of the continuing operations:

(TUSD, unless otherwise noted)	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Nine Months 2023	Nine Months 2022
Net Daily Production (BOEPD)	179	211	233	280	314	207	438
Revenue	1,250	1,325	1,486	1,991	2,567	4,061	10,336
Operating netback	527	470	648	1,002	1,379	1,645	5,521
EBITDA	(323)	(1,788)	(237)	(1,335)	(234)	(2,348)	915
Net result for the period	(3,406)	90	(2,378)	(3,579)	(3,928)	(5,694)	(8,950)
Earnings per share – Basic & Diluted (USD)	(0.02)	0.00	(0.02)	(0.03)	(0.03)	(0.04)	(0.07)
Cash and cash equivalents (including restricted cash)	142,785	102,406	110,395	19,520	9,317	142,785	9,317

Letter to shareholders

Dear Friends and Fellow Shareholders,

Let me start with Venezuela – the country with the largest proven oil reserves in the world. In the fourth quarter 2023, we announced that we had signed an exclusivity instrument with Novonor Latinvest Energy, allowing Maha to indirectly acquire 24 percent of the oil and gas company PetroUrdaneta, operating in Venezuela. Novonor’s asset in Venezuela holds over 8 billion barrels of oil in place, according to the independent energy research company Rystad Energy. PetroUrdaneta’s vast reserves and large stock of inactive wells, means opportunities for rapid ramp-ups through small interventions of shut-in wells at low investment costs. Upon the obtaining of proper authorizations, we look forward to enhancing the operations with potential investments in the area, targeting to restore production and cashflow as fast as possible. This acquisition is in line with Maha's ambition to be pioneers and create value for shareholders, while proving our strategy of non-organic growth at attractive low entry multiples. Maha is fully aware of the challenges of operating in Venezuela and had put enormous efforts for several months before deciding to move forward with this transaction. I look forward to updating you as we progress with this transaction.

Looking at the events during the third quarter, we can report a healthy production of 1,953 boepd, with the vast majority being unconsolidated and coming from our assets Papa Terra and Peroá clusters offshore Brazil. This production was reached despite backlog in maintenance inherited from the previous operator. Significant preventive and corrective maintenance have been conducted on Papa Terra during the year, which have resulted in greater production stability. As we ended the quarter, we reached a September production of 2,127 boepd. Both our offshore clusters, however, hold substantial upside to be realized over the coming years. The future work programs on the assets are currently being discussed with the 3R Offshore, the company that Maha holds 15% equity interest in and which operate the assets.

We report revenue from our consolidated production of TUSD 1,250 and share of income from investment in associate, Maha’s net non-cash income portion from the Papa Terra and Peroá assets, of TUSD 1,698 for the third quarter. Our EBITDA was in line with third quarter last year and amounted to TUSD -323 in the third quarter 2023. Following the payment in the third quarter of the second instalment of the purchase price related to the sale of our assets onshore Brazil, our total cash balance (including restricted cash) increased from USD 102 million to USD 143 million.

Our work on our exploration Block in Oman continues. We were granted an extension of the Initial Phase of the Exploration and Production Sharing Agreement for Block 70 until 31st of December 2023. We launched a production test on the Block in March, and we will use this extended time to gather information necessary to support any decision regarding the future of the Block.

In US, we have divested our LAK asset and focused our efforts on the Illinois Basin. In the beginning of the fourth quarter, we kicked off a program consisting of three production wells and production battery installation. After completion, the wells are expected to increase Maha’s current production from the Illinois Basin with production ramp up starting at the end of the year.

With the release of Maha’s third quarter 2023 report, we could also look back on a year of significant changes for our company. During the year, we have gained new reference shareholders and strengthened board, management, and staff with highly motivated colleagues, incentivized for growth! We have sharpened our asset portfolio and strengthened our balance sheet by selling our previous assets onshore Brazil for a substantial amount of cash and gained new assets offshore Brazil. And now in the fourth quarter, we announced the Venezuela transaction.

In addition, I am honored to have been appointed as new CEO of Maha Energy during the quarter, in a very smooth and efficient process. Paulo T. Mendonça, our previous CEO, was elected as new chairman of Maha. Paulo and I have been working together for a long time, and releasing Paulo from the daily management of the company will allow him to focus even harder on our M&A strategy going forward.

Maha is now in a strong financial position, fully equipped to continue our growth trajectory. We have had a promising start, but the journey continues and there is much more to come! While challenges remain, we are excited about what lies ahead and look forward to delivering strong results. As we move forward, we will keep you updated on our progress and milestones.

Thank you for your support and trust in Maha Energy.

Yours sincerely,

Kjetil Braaten Solbraekke (CEO)

Q3 Webcast today at 12:00 CET
The Company invites all interested parties to a live webcasted presentation today at 12.00 CET. Kjetil Solbraekke, CEO, and Guilherme Guidolin de Campos, CFO, will present the report and recent developments.

The webcast will be held in English and will be broadcasted live. An on-demand version will also be available on Maha’s website and YouTube channel. Questions to the presenters can be emailed in advance to the Company at info@maha-energy.com or be made directly on the day of the presentation in the YouTube Comments/Questions field.

Link to webcast: https://youtube.com/live/o_1qrnXzvj8?feature=share

For more information, please visit Maha’s corporate website www.maha-energy.com.

2023 Q3 Maha Energy Report ENG