Maha Energy AB (publ)

Biblioteksgatan 1

SE-111 46 Stockholm

www.mahaenergy.ca

Press release

Stockholm

29 August 2018

This press release is not for release, publication or distribution, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland or the United States, or in any other jurisdiction where distribution of this press release could be illegal or subject to legal restrictions.

Maha Energy AB Announces Filing of Second Quarter Report

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

Second Quarter 2018

• Daily oil & gas production for the second quarter averaged 1,429 BOEPD (Q2 2017: 259 BOEPD). Planned production shutdowns at the Tartaruga field due to well workover operations reduced second quarter production compared to first quarter of 2018
• Revenue of USD 7.9 million (Q2 2017: USD 1.0 million)
• EBITDA of USD 4.0 million (Q2 2017: USD -1.0 million)
• Net result for the period of USD 1.9 million (Q2 2017: USD -3.6 million)
• Earnings per share of USD 0.02 (Q2 2017: USD -0.04)
• Operating netback of USD 5.1 million or USD 39.22 per barrel (Q2 2017: USD 0.2 million or USD 11.76 per barrel)
• Following the quarter end, the Company recompleted the GTE-3 well. The Sergi formation has, on its own, initially tested at 960 BOPD, 218 BWPD and 261 MSCFPD of gas with the assistance of the newly acquired jet pump and has now been placed on production.

Financial Summary

(TUSD, unless otherwise noted)	Q2 2018	Q1 2018	Q4 2017[1]	Q3 2017	Q2 2017	H1 2018	H1 2017	FY 2017
Net Daily Production (BOEPD)	1,429	1,762	1,597	1,671	259	1,595	187	917
Revenue	7,859	8,629	6,939	6,173	1,043	16,488	1,492	14,604
EBITDA	3,960	4,566	2,930	2,259	(967)	8,526	(1,976)	3,213
Net result for the period	1,859	2,306	2,482[2]	(402)	(3,626)	4,165	(4,875)	(2,849)
Earnings per share (USD)	0.02	0.02	0.03	(0.00)	(0.04)	0.04	(0.06)	(0.03)
Cash and equivalents	20,914	22,779	18,729	18,372	13,324	20,914	13,324	18,729

Letter to Shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

It is noteworthy Maha's acquisition of the Tie and Tartaruga producing oil fields in Brazil is well timed with the ongoing recovery and stabilization of world oil markets. Globally:

 "2017 was the third consecutive year of decline in global energy investment with energy efficiency the lone sector of growth" (*) writes the International Energy Agency (IEA) in the World Energy Investment Report for 2018 that was released in July, 2018.  The report goes on:

"Oil and gas companies are doing more with less …

Following the peaks in oil and gas upstream investment reached in 2014, investment collapsed abruptly as a result of lower prices. 2017 investment rebounded by 2% in real terms, and we estimate the same level of growth for 2018.The oil and gas industry has been traditionally characterized by long-lead time projects with predictable production profiles. Yet as a result of the shale revolution in the United States this trend is changing and the industry is re-thinking the way they choose, execute and manages projects. Furthermore, investment in conventional assets (responsible for the bulk of supply) remains focused on expansion of existing projects rather than developing new sources of production."

(See Table in PDF version attached)

 
The report shows that after the recent downturn, capital investment in the upstream oil and gas sector bottomed out in 2016. In 2017 there was a slight (2%) increase in capital spending – but annual spending is still 40% less than what it was in 2014.  At the peak in 2014, annual capital expenditures in the oil and gas sector were almost USD 800 billion. In 2017, capital spending was USD 440 billion, up modestly from USD 425 billion in 2016.

It is 4 years since world oil price fell from USD 110/bbl to a low of USD 26/bbl.  The evidence would suggest it is now safe to assume that the sector has stabilized; Oil prices are up and stable; capital investment has stabilized; the US rig count is stable.  Demand, on the other hand, continues its' relentless upward march with the world poised to breach a 100 million barrel/day of consumption this year notwithstanding efforts towards electric vehicles and efficiencies.  Demand has increased, on average, about 1.5% per year since 1980.  Rising consumption, the shift away from investment in long-term projects and the USD 1 trillion reduction in upstream investments from 2015-2017 raises serious questions about the industry's ability to adequately supply the world's future oil & gas requirements.  The threat of new sanctions on Russia and Iran will also, in all likelihood, affect supply.

These observations should be cause for concern.  I encourage everyone to read the report – it is full of interesting analysis and facts, including the rise of Electric Vehicles (EV's) and the corresponding massive demand for mobility as China, India and Africa continue to modernize their economies.

That said I remain bullish on the oil price and I think Maha's timing is near perfect.  The work in Brazil will increase production just as price fully recovers.  There is a lot going on, the most exciting of which are Maha's two announced drilling projects in Brazil.

The first – the 107D sidetrack will be the first horizontal well drilled at Tartaruga. It should spud any day.  The Penedo sandstone target is an excellent candidate for this type of technology. The aim is to drill a 500 meter horizontal production hole into a zone that has produced over 650,000 barrels of oil with hardly any water.  We are confident the outcome will be oil – drilling will tell how much.

The second – a vertical production well (the Attic Well) is planned to be drilled on the crest of the Tie structure.  The structure is a 3-way fault bounded structure that extends across multiple reservoirs.  Both the Agua Grande and the Sergi reservoirs are known to be oil bearing and the structurally high well location is expected to access previously unproduced oil and gas from both reservoirs.  Both zones are expected to be free flowing and will not initially require artificial lift. The Attic well is now anticipated to be spudded in October. The Attic Well will also explore the previously undrilled Boipeba structure, which could contain oil.

Financially, the second quarter was healthy for Maha despite the planned production shutdowns at the Tartaruga field.  Higher oil prices and more production at the Tie field contributed to good consistent results for Maha.

Operationally, while work at Tartaruga did run into some problems because the work over unit hired was too small to pull an (unexpected) stuck existing completion string, the plan is to move the contracted drilling rig across the Tartaruga license area to the 7TTG well to finish the recompletion after the 107D sidetrack is finished.

At the Tie Field there is excellent response to the water flood project started in October last year.  The Agua Grande zone remains free flowing with very little water and the gas oil rate has returned to normal.  While the Sergi zone has started to experience some water influx which could lead to an accelerated decline, the introduction of the newly purchased (and delivered) jet pump at GTE4 will increase production from both zones and prevent the decline in the Sergi zone.

We thank you for your continued support.

"Jonas Lindvall"

Managing Director

(*)World Energy Investment 2018, International Energy Agency (IEA) 17 July, 2018. (https://webstore.iea.org/world-energy-investment-2018)

Adviser

FNCA Sweden AB is the Company's Certified Adviser.

For more information, please contact:

Jonas Lindvall (CEO)

Tel: +1 403 454 7560        

Email: jonas@mahaenergy.ca

or

Ron Panchuk (CCO)

Tel: +1 403 454 7560

Email: ron@mahaenergy.ca

or

Andres Modarelli (CFO)

Tel: +1-403-454-7560

Email: andres@mahaenergy.ca

Miscellaneous

This information is published in accordance with the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above on August 29, 2018, at 7:00 am CET.

Maha in Brief

Maha Energy AB is a Swedish public limited liability company. FNCA Sweden AB has been engaged as Certified Adviser. The Company's auditors are Deloitte. The Company's predecessor Maha Energy Inc. was founded in 2013 in Calgary, Canada, by Jonas Lindvall and Ron Panchuk. In May 2016, the new group was formed with Maha Energy AB as parent company for purposes completing an initial public offering on the Nasdaq First North Sweden stock exchange. Jonas Lindvall, CEO and Managing Director, has 26 years of international experience in the oil and gas industry, starting his career with Lundin Oil during the early days of E&P growth.  After 6 years at Shell and Talisman, Jonas joined, and helped secure the success of, Tethys Oil AB. Maha's strategy is to target and develop underperforming hydrocarbon assets on global basis. The Company operates three oil fields, Tartaruga and Tie in Brazil and LAK Ranch, in Wyoming, U.S. For more information, please visit our website www.mahaenergy.ca.

Important Information

Publication or distribution, directly or indirectly, of this press release could in some jurisdictions be subject to restrictions according to law and recipients of this press release, or part of it, are required to inform themselves of, and comply with, such legal restrictions. This press release is not for release, publication or distribution, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland or the United States, or in any other jurisdiction where distribution of this press release could be illegal or subject to legal restrictions. Copies of this press release are not being made and may not be distributed or sent, in whole, or part, directly or indirectly, in violation of such restrictions. Failure to comply with such restrictions may constitute a criminal act under the United States Securities Act of 1933 (as amended) ("Securities Act") or applicable laws in other jurisdictions.

—

[1] Q4 2017 figures include previously disclosed changes to the 2017 Fourth Quarter Report in April 30, 2018 press release

[2] Includes positive adjustment of TUSD 1,423 in relation to FY 2017. Result for the Q4 2017 period before adjustment was $1,059 and Earnings per share of 0.01.

Maha Energy AB Press Release – Q2 2018 Report
Maha Energy Q2 2018 Report

—
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Maha Energy AB via Globenewswire

Maha Energy AB (publ)

Biblioteksgatan 1

SE-111 46 Stockholm

www.mahaenergy.ca

Press release

Stockholm

August 29th, 2017

This press release is not for release, publication or distribution, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland or the United States, or in any other jurisdiction where distribution of this press release could be illegal or subject to legal restrictions.

Maha Energy AB Announces Filing of Q2 Financials

Maha Energy AB (publ) ("Maha" or the "Company") has today released its Q2 Financials Statements for the quarter ended June 30, 2017.  The Q2 Financials Statements are attached and available on the Company's website at www.mahaenergy.ca.

Highlights of Second Quarter 2017

• The Company completed a Bond Financing for SEK 300,000,000 to finance the previously announced acquisition of the Brazilian business unit of Gran Tierra Energy Inc. ("Gran Tierra").
• The Company completed a Guaranteed Rights Offering for gross proceeds of SEK 91,727,215 to finance the Gran Tierra acquisition.
• The Company established July 1 as the date for closing of the acquisition of the Brazilian business unit of Gran Tierra and the Closing occurred.
• Company sold Production on the Tartaruga Field increased by 115% to an average of 213 BOPD during the quarter.  The increase was primarily due to the successful workover of the 107D well which was completed during the first quarter.

Results of Second Quarter 2017

• Company sold Production of 19,393 bbls for the period compared to 0 (zero) bbls for the same period 2016
• Revenue of KUSD 995 for the period compared to KUSD 0 (zero) for the same period 2016
• Net Result of KUSD (3,626) for the period compared to KUSD (651)  for the same period 2016
• Net Result of (0.4) /share for the period compared to (0.2)/share for the same period 2016

Letter to Shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

The Q2 financial results are very much as expected.  The additional production from the Tartaruga Field had a positive impact on our revenue, and LAK Ranch revenue continues to be capitalized (thus does not appear on the 'revenue' lines consistent with previous quarters).  What was unexpected was the quick approval by the Brazilian authorities of Maha's acquisition Gran Tierra Energy's ("GTE") Brazil operations which came early in the quarter.

In the Q1 Letter to Shareholders, I had indicated Maha was in the process of completing the financing for Maha's acquisition of 100% of GTE's Brazilian operations for a cash consideration of USD 35 million (before post closing adjustments) and the assumption of approximately USD 11 million in Government Guarantees and Letters of Credits (the "Acquisition").   I am pleased to report the Acquisition closed on 1 July, 2017 – much earlier than anticipated.  Naturally we are thrilled with this outcome.

The financing was very complicated and involved several inter-dependent steps, which were each critical path to success.  Our team worked tirelessly to ensure each part was successfully completed on time. I am very grateful to everyone involved.

In the end, the Bond and the Rights Issue closed in June and Maha received Brazil Government go-ahead earlier than anticipated. This in turn allowed closing of the Acquisition to occur straight away, with-out the necessity of tying up capital in an escrow account.  Completion of the Acquisition now positions us to focus on production from our assets and revenue.

It bears repeating – Maha is a value driven Company.  "We go where there is value."  The GTE Acquisition's core value lies in its' production and production related development opportunities. GTE's Q2 reported production of 1,339 BOEPD and operating net back of USD 28.96/bbl demonstrates this value.  Further value can easily be unlocked by removing certain commercials constraints currently facing the Tie field as is discussed later in this Report. We are also undertaking a detailed review to look for "bonus" value in addition to these producing assets.  As part of the Acquisition, Maha acquired 6 exploration blocks with a total area of 41,606 acres which is in addition to the 13,201 acres of under-explored land in the Tartaruga block.  These blocks are all strategically located in established and well documented oil and gas producing basins.  While Maha's focus is on producing assets, our business model anticipates 20% of our asset portfolio to be near field exploration opportunities. These newly acquired Blocks are great examples of 'looking for oil where there is oil'.  As the map demonstrates – the new 6 blocks are surrounded by, and on trend with world-class oil and gas discoveries. Areas in yellow form part of Maha's acreage in the Bahia province in Brazil.

These new blocks are in varying stages of evaluation and our work in fully understanding the subterranean details has just begun.  Part of our current work is to independently verify the previously identified prospects mapped by GTE indicating approximately 48 million barrels of potentially recoverable oil. Fortunately, modern 3D seismic is available on all the blocks as an aid in this process.

Production continued to grow during the second Quarter with Tartaruga leading the way.  Company production was up 85% compared to the first Quarter (Q2 Maha production was 22,000 bbls compared to 11,885 bbls in Q1 before all Royalties).  No major shut downs occurred during the quarter, however, the 7TTG well at Tartaruga did start to show signs of reduced production due to a suspected leak in the downhole production tubing.  Plans are underway to rectify this problem during the second half of the year.   At LAK Ranch production remained steady at 2,606 bbls of oil sold this quarter. The effects of the hot water flood are stabilizing and we see a good response in the two main production wells.  Our team at LAK expects further improvements into the next half of the year.

To conclude; the second quarter was a very busy quarter with focus on completing the complicated financing for the GTE transaction and the Acquisition.  The Company is now in a good place financially, has a world class menu of assets and with laser sharp focus and execution is expecting to enjoy production increases during the second half of the year.

We thank you for your continued support.

Jonas Lindvall

Managing Director and CEO

Adviser

FNCA Sweden AB is the Company's Certified Adviser.

For more information, please contact:

Jonas Lindvall (CEO)
Tel: +1 403 454 7560        
Email: jonas@mahaenergy.ca

or

Ron Panchuk (CCO)

Tel: +1 403 454 7560        
Email: ron@mahaenergy.ca

Miscellaneous

This information is published in accordance with the EU Market Abuse Regulation and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication through the agency of the contact persons set out above on August 29th, 2017, at 8:00 pm CET.

Maha in Brief

Maha Energy AB is a Swedish public limited liability company. FNCA Sweden AB has been engaged as Certified Adviser. The Company's auditors are Deloitte. The Company's predecessor Maha Energy Inc. was founded in 2013 in Calgary, Canada, by Jonas Lindvall and Ron Panchuk. In May 2016, the new group was formed with Maha Energy AB as parent company for purposes completing an initial public offering on the Nasdaq First North Sweden stock exchange. Jonas Lindvall, CEO and Managing Director, has 26 years of international experience in the oil and gas industry, starting his career with Lundin Oil during the early days of E&P growth.  After 6 years at Shell and Talisman, Jonas joined, and helped secure the success of, Tethys Oil AB. Maha's strategy is to target and develop underperforming hydrocarbon assets on global basis. The Company operates three oil fields, Tartaruga and Tie in Brazil and LAK Ranch, in Wyoming, U.S. For more information, please visit our website www.mahaenergy.ca.

Important Information

Publication or distribution, directly or indirectly, of this press release could in some jurisdictions be subject to restrictions according to law and recipients of this press release, or part of it, are required to inform themselves of, and comply with, such legal restrictions. This press release is not for release, publication or distribution, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland or the United States, or in any other jurisdiction where distribution of this press release could be illegal or subject to legal restrictions. Copies of this press release are not being made and may not be distributed or sent, in whole, or part, directly or indirectly, in violation of such restrictions. Failure to comply with such restrictions may constitute a criminal act under the United States Securities Act of 1933 (as amended) ("Securities Act") or applicable laws in other jurisdictions.

Maha Energy AB Press Release – Q2 2017
2017-Q2 Financials

—
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Maha Energy AB via Globenewswire

Maha Energy AB (publ)

Biblioteksgatan 1

SE-111 46 Stockholm

www.mahaenergy.ca

   Press release

   Stockholm

   29 August 2016

This press release is not for release, publication or distribution, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland or the United States, or in any other jurisdiction where distribution of this press release could be illegal or subject to legal restrictions. See also section IMPORTANT INFORMATION below.

Maha Energy AB announces its second quarter and half year report ending June 30, 2016

Maha Energy AB (the "Company" or "Maha") today announces the release of its second quarter and half year report dated June 30, 2016.  The report is available hereto and on the Company's website at www.mahaenergy.ca.

Consolidated Key Ratios
				Three months ended June 30,	Six months ended June 30,
				2016	2015	2016	2015
Revenue	41,060	255,773	103,085	413,685
Equity/assets ratio	94%	95%	94%	95%
Return on equity	(3%)	(2%)	(6%0	(3%)
Debt/equity ratio 1	–	–	–	–
Interest coverage ratio 1	–	–	–	–
Weighted average number of common shares outstanding 2	43,087,430	43,061,434	43,087,430	43,037,816
Basic and diluted loss per common share	(0.02)	(0.01)	(0.03)	(0.02)
Dividends paid per share	–	–	–	–
(1) The Company does not have any indebtedness nor interest payments
(2) Weighted average number of common shares is calculated based on the number of class A and class B shares outstanding during the period and does not include the convertible class C shares (C1 and C2) which have no interest in the net assets of the Company nor entitled to dividends until the underlying Maha (Canada) stock options and share purchase warrants are exercised and exchanged for Maha (Sweden) class A shares.

Listing on Nasdaq First North Stockholm

On July 29, 2016, Maha Energy AB's class A shares (trading symbol Maha A) and share purchase warrants (trading symbol Maha A TO 1) commenced trading on the Nasdaq First North Stockholm stock exchange.  Concurrent with the listing on the First North stock exchange, the Company completed a financing (the "Offering") at 19 SEK per unit whereby each unit consisted of 4 Class A shares and 1 share purchase warrant.  The Company raised SEK 108.0 million SEK (US$ 12.6 million as at final closing date, August 5, 2016 US/SEK exchange rate 8.56) in cash proceeds and issued 6,198,074 units (24,792,296 A-Shares and 6,198,074 share purchase warrants) including 515,378 units  that were issued to the guarantor group as payment of 9% fees owed under the guarantee agreements.

The Company intends to use the proceeds from the Offering along with the existing working capital to:

• fund the acquisitions in Brazil;
• fund drilling and workover operations in Brazil;
• start the initial phase 3 development at the Company's LAK asset in Wyoming;
• fund general and administrative expenses.

Share data

As at June 30, 2016 the Company had 43,087,430 shares outstanding of which 29,478,036 were class A shares, 13,609,394 were class B shares.  In addition, Maha (Sweden) issued 4,592,527 convertible class C Shares (C1 and C2).  In the event that the existing Maha (Canada) stock options and warrants (which expire November 2016) are exercised these convertible class C Shares will be redeemed and exchanged for Maha (Sweden) Class A shares.  In the event that the Maha (Canada) stock options and warrants are not exercised, the convertible class C shares will be redeemed and cancelled.

Subsequent to June 30, 2016, Maha (Sweden) closed the Offering.  As at August 29, 2016, Maha (Sweden) has 67,879,726 class A and B shares outstanding (54,270,332 class A-shares and 13,609,394 class B Shares) and 6,198,074 Maha (Sweden) share purchase warrants.  In addition Maha (Sweden) has 4,592,527 convertible class C-Shares (C1 and C2). A full description of the class A and convertible class B and C shares can be found in note 10 to the second quarter and half year report ending June 30, 2016.

Brazil Acquisitions

On March 10, 2016, the Company entered into a definitive purchase and sale agreement with a private, Texas based company, which has a 37.5% working interest in the Tartaruga development block, located in the Sergipe Alagoas Basin of Brazil and is the designated operator of the block.  The acquisition is subject to the approval of the Brazilian Government and the Brazilian National Oil Agency ("ANP").  The Company has paid a refundable deposit in the amount of US$ 500,000.

On January 18, 2016, the Company entered into a definitive purchase and sale agreement with Petro Vista Energy Corp whereby the Company will acquire an additional non-operated 37.5% working interest in the Tartaruga development block.  The acquisition price of CAD $2.5 million will be paid in equal installments with the first payment upon successful approval of the transaction by the Brazilian Government and ANP and the second payment by December 2016.  Maha has also entered into a loan agreement with Petro Vista Energy Corp whereby funds were provided for Petro Vista to resolve outstanding joint interest billings for up to $815,500.  $750,000 of the loan will form part of the acquisition purchase price in the event of closing while the remaining amount will be deducted from the first installment.

Upon closing of the two acquisitions, the Company would be the operator and hold a 75% working interest in the Tartaruga Block.  Management has commenced the approval process and believes that the process could be completed during the second half of 2016.

Results of operations Operations

Canadian Assets

For the six months ended June 30, 2016, the Company generated revenue of $103,085 on an average sales volume of 36 boepd compared with $413,685 of revenue during the six months ended June 2015 from an average of 65 boepd.  Lower production volumes were a result of lower field activity as the operator was in receivership.

The crude oil produced from the Manitou and Marwayne areas is 12° API.  The Canadian Assets produced a total of 6,119 barrels net to Maha in the first six months of 2016. The average price received was CAD $26.15.

Operating costs associated with the Canadian Assets were $65,435 for the six months ended June 30, 2016 compared with $202,188 for the comparable period ended June 30, 2015. Lower operating costs in 2016 were due to lower field activity and reduced workover costs.

In July 2016, the operator of the Canadian Assets, which had been in receivership since February 2015, was purchased by a Canadian Company.  The new operator has indicated that field activity will increase during the second half of 2016 as they seek to increase production from existing wells by way of workovers.

LAK Ranch

As at June 30, 2016, the LAK Ranch asset is considered to be in the pre-production stage and is currently undergoing delineation and pre-development work.  As such, operating costs net of revenues since the commencement of operations have been capitalized as part of the exploration and evaluation costs.

The LAK field was shut in starting April 2016 and remained shut in as of June 30, 2016, primarily due to low oil prices and the requirement for reservoir pressure maintenance. During the shut-in period, the Company commenced the capital investment to allow for produced water recycling, which is critical for handling of produced water and re-injection of water for pressure maintenance.  The project was completed in August and production from a limited number of wells was re-established by the end of August 2016.

Technical work completed during 2015 has now laid the groundwork for the full field development plan. The full field development plan contemplates hot water injection, rather than steam playing a more significant role than originally anticipated. The extra cost of hot water injector wells are far offset by the elimination of steam requirements. The field development plan was evaluated by the Company's
independent reserve auditors, and the Company reserves for LAK Field at the end of November 2015 were 12.9 million barrels of oil ((Proven and Probable (2P)).

General and administrative

During the six months ended June 30, 2016, general and administrative ("G&A") costs were $682,090 compared to $681,916 for the same period June 30, 2015.

Transaction costs

During the six months ended June 30, 2016, the Company incurred $435,972 in transaction costs which primarily related to:

• $350,673 marketing and non-direct costs associated with the Offering and the listing on Nasdaq First North Stockholm;
• $86,298 in legal and transaction costs associated with the Brazil acquisitions

Stock-based compensation

Stock based compensation expense for the six months ended June 30, 2016 was $87,384 similar to $65,120 for the comparable period June 30, 2015.

Maha Energy AB
Condensed Consolidated Interim Statement of Financial Position
As at	June 30			December 31
(Unaudited – Expressed in U.S. dollars)	2016			2015
Assets
Current assets
	Cash	$   1,494,506			$   4,592,780
	Accounts receivable	40,906			103,622
	Deposit & Loan (Note 5)	1,315,500			–
	Deferred financing costs (Note 10)	381,318			–
	Prepaid expenses and other	101,242			53,615
				3,333,472			4,750,017
Non-current assets
	Exploration and evaluation assets (Note 6)	16,858,349			16,314,650
	Property and equipment (Note 7)	1,720,307			1,745,058
	Performance bonds and other (Note 8)	162,949			161,595
				$  22,075,077			$  22,971,330
Liabilities
Current liabilities
	Accounts payable and accrued liabilities	$  573,958			$   350,461
Non-current liability
	Decommissioning provision (Note 9)	860,699			834,685
				1,434,657			1,185,146
Shareholders' equity(Note 10)	20,640,420			21,786,184
				$  22,075,077			$  22,971,330

Maha EnergyAB
Condensed Consolidated Interim Statements of Operations and Comprehensive Loss
(unaudited Expressed in U.S. dollars)
				Three months ended June 30	Six months ended June 30
				2016	2015	2016	2015
Oil sales	$  41,060	$  255,773	$  103,085	$  413,685
Less: royalties	4,646	46,164	5,605	63,991
Total Oil revenues	36,414	209,609	97,480	349,694
Expenses
Production and operating	11,050	120,930	65,435	202,188
General and administration	336,207	358,560	682,090	681,916
Transaction costs	269,337	–	435,972	–
Stock-based compensation (Note 10)	43,692	53,210	87,384	65,120
Depletion depreciation and accretion (Note 9)	19,127	126,309	39,523	232,959
Foreign currency translation loss/(gain)	8,181	(14,840)	20,224	(9,582)
				687,594	644,169	1,330,628	1,172,601
Comprehensive loss for the period	$  (651,180)	$  (434,560)	$(1,233,148)	$  (822,907)
Basic and diluted loss per common share	(0.02)	(0.01)	(0.03)	(0.02)
Weighted average number of common shares outstanding	43,087,430	43,061,434	43,087,430	43,037,816

Maha EnergyAB
Condensed Consolidated Interim Statement of Cash Flows
(Unaudited Expressed in U.S. dollars)
	Three months ended  June 30	Six months ended June 30
	2016	2015	2016	2015
Net loss for the period	$(651,180)	$(434,560)	$(1,233,148)	$(822,907)
Operating activities
Add backs:
Stock based compensation	43,692	53,210	87,384	65,120
Depletion and depreciation and accretion	19,127	126,309	39,523	232,959
Unrealized foreign exchange (gain)/loss	(657)	(17,056)	16,742	(16,956)
Changes in non-cash working capital (note 14)	1,529,128	80,638	238,586	(244,344)
	940,110	(191,459)	(850,913)	(786,128)
Investing activities
Brazil deposits & loans	(1,315,500)	–	(1,315,500)	–
Purchase of developed and producing assets (note 7)	–	(47,368)	(5,500)	(181,711)
Purchase of exploration and evaluation assets (note 6)	(220,030)	(1,187,970)	(543,689)	(1,553,631)
Purchase of performance bonds (note 8)	(1,354)	(65)	(1,354)	(198)
Changes in non-cash working capital (note 14)	–	289,567	–	(967,026)
	(1,536,884)	(945,836)	(1,866,043)	(2,702,566)
Financing activity activities
Common stock and warrants issued for cash	–	28,046	–	35,783
Deferred finance costs	(381,318)	–	(381,318)	–
	(381,318)	28,046	(381,318)	35.783
Net (decrease)/increase in cash during the period	(978,092)	(1,109,249)	(3,098,274)	(3,452,911)
Cash and cash equivalents, beginning of period	2,472,598	7,907,913	4,592,780	10,251,575
Cash and cash equivalents, end of period	1,494,506	6,798,664	1,494,506	6,798,664

This report has not been subject to review by the auditors of the company.

For more information, please contact:

               
Jonas Lindvall (CEO)
Tel: +1 403 454 7560        
Email: jonas@mahaenergy.ca

or

Ron Panchuk

Tel: +1 403 454 7560        
Email: ron@mahaenergy.ca

Miscellaneous

This information is published in accordance with the EU Market Abuse Regulation and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication through the agency of the contact persons set out above on 29 August 2016, at 5 p.m. CET.

Maha in Brief
Maha Energy AB is a Swedish public limited liability company. Setterwalls Advokatbyrå AB acts as legal adviser to the Company. FNCA Sweden AB has been engaged as Certified Adviser.  The Company's auditors are Deloitte.

The Company's predecessor Maha Energy Inc was founded in 2013 in Calgary, Canada, by Jonas Lindvall and Ron Panchuk. In May 2016, the new group was formed with Maha Energy AB as parent company for purposes of the Offering and the planned listing. Jonas Lindvall, CEO and Managing Director, has 25 years of international experience in the oil and gas industry, starting his career with Lundin Oil during the early days of E&P growth.  After 6 years at Shell and Talisman, Jonas joined, and helped secure the success, of Tethys Oil AB. Maha's strategy is to target and develop underperforming hydrocarbon assets on global basis. The Company will operate two oil-fields, Tartaruga in Brazil (subject to Brazilian Government approvals and closing) and LAK Ranch, in Wyoming, US. For more information, please visit our website www.mahaenergy.ca.

Important Information

Publication or distribution, directly or indirectly, of this press release could in some jurisdictions be subject to restrictions according to law and recipients of this press release, or part of it, are required to inform themselves of, and comply with, such legal restrictions. This press release is not for release, publication or distribution, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa, Switzerland or the United States, or in any other jurisdiction where distribution of this press release could be illegal or subject to legal restrictions. Copies of this press release are not being made and may not be distributed or sent, in whole, or part, directly or indirectly, in violation of such restrictions. Failure to comply with such restrictions may constitute a criminal act under the United States Securities Act of 1933 (as amended) ("Securities Act") or applicable laws in other jurisdictions.

Maha Financials June 30 2016
PRESS RELEASE August 29, 2016

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Maha Energy AB via Globenewswire