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Maha Energy AB meddelar resultat för fjärde kvartalet 2022 och inbjudan till webcast

Maha Energy AB (publ) (“Maha” eller “bolaget”) presenterar resultatet för fjärde kvartalet 2022. Rapporten är bifogad i detta pressmeddelande och finns även tillgänglig på bolagets hemsida www.mahaenergy.ca.

Höjdpunkter

(alla belopp är i amerikanska dollar (USD) om ej annat anges)

Fjärde kvartalet 2022

  • Bindande slutligt avtal (”term sheet”) signerats avseende en sammanslagning av verksamheterna med DBO 2.0. Slutförande beräknas ske efter godkännande på Mahas extra bolagsstämma 29 mars 2023.
  • Försäljning offentliggjord av Mahas brasilianska dotterbolag för en sammanlagd köpeskilling om 186,9 miljoner USD, med en köpeskilling om 138 miljoner USD plus 9,3 miljoner USD efter justeringar av Maha Brazils rörelsekapital, netto, samt 3,7 miljoner USD efter justeringar av inklusive likvida medel, netto, samt 36,1 miljoner USD som ska betalas när vissa milstolpar har uppnåtts.
  • Bolaget slutförde en riktad nyemission om 23,9 miljoner aktier vilken tillförde cirka 20 miljoner USD för att förstärka balansräkningen.
  • Tre nya ledningstillsättningar, inklusive Verkställande Direktör, CFO (Ekonomichef) och CLO (Chefsjurist).
  • Genomsnittlig dagsproduktion av olja och gas för det fjärde kvartalet 2022 var 2 621 BOEPD (Q4 2021: 3 098 BOEPD) varav 280 BOEPD (Q4 2021:247 BOEPD) avsåg kvarvarande verksamhet och 2 341 BOEPD
    (Q4 2021:2 851 BOEPD) avsåg avvecklad verksamhet.
  • Intäkter om 17,3 miljoner USD (Q4 2021: 17,8 miljoner USD) varav 2,0 miljoner USD (Q4 2021: 2,0 miljoner USD) avsåg kvarvarande verksamhet och 15,3 miljoner USD (Q4 2021: 15,8 miljoner USD) avsåg avvecklad verksamhet.
    • Rörelsens netback uppgick till 9,8 miljoner USD (Q4 2021: 11,9 miljoner USD) varav 1,0 miljoner USD (Q4 2021: 1,1 miljoner USD) avsåg kvarvarande verksamhet och 8,8 miljoner USD (Q4 2021: 10,8 miljoner USD) avsåg avvecklad verksamhet.
  • EBITDA om 8,8 miljoner USD (Q4 2021: 15,6 miljoner USD) varav -1,3 miljoner USD (Q4 2021: -0,5 miljoner USD) avsåg kvarvarande verksamhet och 10,1 miljoner USD (Q4 2021: 16,1 miljoner USD) avsåg avvecklad verksamhet.
    • Periodens resultat uppgick till 0,1 miljoner USD (Q4 2021: 7,4 miljoner USD) varav -3,6 miljoner USD (Q4 2021: 3,8 miljoner USD) avsåg kvarvarande verksamhet och 3,7 miljoner USD (Q4 2021: 11,1 miljoner USD) avsåg avvecklad verksamhet.
    • Vinst per aktie före och efter utspädning om 0,00 USD (Q4 2021: 0,06 USD) varav -0,03 USD (Q4 2021: -0,03 USD) avsåg kvarvarande verksamhet och 0,03 USD (Q4 2021: 0,09 USD) avsåg avvecklad verksamhet.

Helåret 2022

  • Genomsnittlig dagsproduktion av olja och gas för helåret 2022 uppgick till 3 213 BOEPD (2021: 3 387 BOEPD) varav 401 BOEPD (2021:212 BOEPD) avsåg kvarvarande verksamhet och 2 812 BOEPD (2021:3 175 BOEPD) avsåg avvecklad verksamhet.
  • Intäkter för helåret 2022 uppgick till 89,8 miljoner USD (2021: 68,3 miljoner USD) varav 12,3 miljoner USD (2021: 5,7 miljoner USD) avsåg kvarvarande verksamhet och 77,5 miljoner USD (2021: 62,6 miljoner USD) avsåg avvecklad verksamhet.
  • Rörelsens netback för helåret 2022 uppgick till 60,7 miljoner USD (2021: 46,1 miljoner USD) varav 6,5 miljoner USD (2021: 2,9 miljoner USD) avsåg kvarvarande verksamhet och 54,2 miljoner USD (2021: 43,2 miljoner USD) avsåg avvecklad verksamhet.
  • EBITDA för helåret 2022 uppgick till 55,1 miljoner USD (2021: 47,7 miljoner USD) varav -0,4 miljoner USD (2021: -2,2 miljoner USD) avsåg kvarvarande verksamhet och 55,5 miljoner USD (2021: 49,9 miljoner USD) avsåg avvecklad verksamhet.
  • Årets resultat för 2022 uppgick till 22,9 miljoner USD (2021: 21,6 miljoner) varav -12,5 miljoner USD (2021: -13,3 miljoner USD) avsåg kvarvarande verksamhet och 35,4 miljoner USD (2021: 34,9 miljoner USD) avsåg avvecklad verksamhet.
    • Vinst per aktie före och efter utspädning för helåret 2022 var 0,19 USD (2021: 0,19 USD) varav -0,10 USD (2021: -0,12 USD) avsåg kvarvarande verksamhet och 0,29 USD (2021: 0,31 USD) avsåg avvecklad verksamhet.
    • Likvida medel per den 31 december 2022 var 23,2 miljoner USD (2021: 25,5 miljoner USD) varav 19,5 miljoner USD (2021: 18,4 miljoner USD) avsåg kvarvarande verksamhet och 3,7 miljoner USD (2021: 7,2 miljoner USD) avsåg avvecklad verksamhet.

Finansiell information i sammandrag

Tabellen avser kvarvarande och avvecklad verksamhet:

(TUSD, om ej annat anges) Q4 2022 Q3
2022
Q2
2022
Q1
2022
Q4
2021
Helår 2022 Helår
2021
Dagsproduktion, netto (BOEPD) 2 621 2 389 3 292 4 580 3 098 3 213 3 387
Intäkter 17 271 17 657 24 018 30 831 17 818 89 777 68 306
Rörelsens netback 9 796 10 998 17 408 22 528 11 913 60 729 46 060
EBITDA 8 765 9 648 14 621 22 069 15 615 55 101 47 725
Periodens resultat 93 2 593 8 219 12 030 7 363 22 933 21 587
Vinst per aktie – före och efter utspädning (USD) 0,00 0,02 0,07 0,10 0,06 0,19 0,19
Likvida medel 23 228 11 338 23 863 29 416 25 535 23 228 25 535

Tabellen avser kvarvarande verksamhet:

(TUSD, om ej annat anges) Q4
2022
Q4
2021
Helår
2022
Helår
2021
Dagsproduktion, netto (BOEPD) 280 247 401 212
Intäkter 1 991 1 978 12 327 5 732
Rörelsens netback 1 002 1 096 6 523 2 882
EBITDA (1 335) (522) (420) (2 201)
Periodens resultat (3 579) (3 774) (12 529) (13 339)
Vinst per aktie – före och efter utspädning (USD) (0,03) (0,03) (0,10) (0,12)
Likvida medel 19 520 18 370 19 520 18 370

Tabellen avser avvecklad verksamhet:

(TUSD, om ej annat anges) Q4
2022
Q4
2021
Helår
2022
Helår
2021
Dagsproduktion, netto (BOEPD) 2 341 2 851 2 812 3 175
Intäkter 15 280 15 840 77 450 62 574
Rörelsens netback 8 794 10 817 54 206 43 178
EBITDA 10 100 16 137 55 521 49 926
Periodens resultat 3 672 11 137 35 462 34 926
Vinst per aktie – före och efter utspädning (USD) 0,03 0,09 0,29 0,31
Likvida medel 3 708 7 165 3 708 7 165

Brev till aktieägarna

Kära vänner och aktieägare i Maha Energy AB,

Det fjärde kvartalet 2022 innebar en tid av förändring för Maha med Investmentfonden, som hanteras av Starbord Partners, ett brasilianskt private equity-bolag, som ny aktieägare och blev Maha största aktieägare med ca 19,9 procent. De stora förändringarna i Mahas aktieägarstruktur, styrelse och företagsledning, tillförde förnyat ledarskap och expertis inom och starka meriter i den latinamerikanska energimarknaden.

Bland förändringarna sedan november är det viktigt att peka på följande händelser:

  1. Förändringar i styrelsen: Mahas styrelse tillfördes tre nya styrelseledamöter som har omfattande företagsledande och finansiell bakgrund i energiindustrin och framför allt i mindre olje- och gasbolag (Fabio Vasell och jag själv är båda tidigare grundare och styrelseordföranden i 3R Petroleum, ett noterat brasilianskt olje- och gasbolag med 2 miljarder USD i marknadsvärde);
  2. Förändringar i företagsledningen: Tre nya personer anslöt till Mahas företagsledning under det senaste kvartalet:
    1. Jag, Paulo Mendonça, utsågs till Verkställande Direktör och förnyar Mahas ledarskap;
    2. Bernardo Guterres utsågs till ny CFO i Maha och tillför kompetens och expertis från en 15-årig karriär inom större internationella banker och högt rankade brasilianska private equity-bolag med uppgiften att optimera Bolagets nuvarande kapitalstruktur och leda Bolagets spännande och viktiga förvärvsstrategi;
    3. Barbara Bittencourt utsågs till Chief Legal och Compliance, en ny position i Bolagets företagsledning. Det huvudsakliga syftet var att tillföra teknisk och legal support inom en sektor som har omfattande och komplexa regelverk i olika länder. Barbara har en omfattande karriär som partner i större advokatfirmor och hon har de senaste tio åren helt och hållet ägnat sig åt olje- och gasmarknaden.
  3. I början av december 2022 ingick Maha och DBO 2.0 (”DBO”) en bindande överenskommelse (ett s.k. ”term sheet”) avseende en sammanslagning av bolagens verksamheter. DBO har en 15-procentig ägarandel i 3R Offshore som äger och opererar två offshore kluster i Brasilien – Papa Terra och Peroá. När affären är genomförd kommer den att tillföra ett intressant värde för Mahas aktieägare då den kommer att genomföras till en attraktiv ingångsmultipel om 0,2*P/NAV (nyemission av 36,8 miljoner aktier). Transaktionen kommer, när den är genomförd, att öka Mahas bevisade och sannolika reserver (2P-reserver) med cirka 18,5 miljoner fat oljeekvivalenter och beräknas 2023 tillskjuta cirka 2 000 fat oljeekvivalenter per dag i nettoproduktion med en ytterligare uppsida genom uppgradering av Papa Terra och Peroá och en möjlig utbyggnad i Malombe (del av Peroáklustret). Transaktionen förstärker konstruktionen av en diversifierad portfölj som är balanserad mellan mogna olje- och gastillgångar på land (onshore) såväl som till havs (offshore) med fokus på kassaflöden. Slutförandet av denna transaktion förväntas ske efter godkännande från Mahas extra bolagsstämma den 29 mars 2023.
  4. I mitten av december 2022 tillfördes Maha cirka 19 miljoner USD efter transaktionskostnader genom en riktad nyemission vilket förstärkte och förbättrade Bolagets tidigare kapitalstruktur och tillför en ny bas av aktieägare som har en långsiktig investeringsprofil. Kapitalanskaffningen förstärkte Bolagets investerarbas och attraherade nya institutionella och internationella intesterare.
  5. Under den sista veckan i december 2022 slutförde Maha försäljningen av sitt brasilianska dotterbolag Maha Brasil till PetroRecôncavo, ett brasilianskt listat mindre olje- och gasbolag med ett nuvarande börsvärde om cirka 2 miljarder USD, för en total köpeskilling om upp till 186,9 miljoner USD. Med beaktande av den erhållna likviden för försäljningen av de brasilianska tillgångarna (samt tilläggsköpeskilling) jämte de likvida medlen vid utgången av det fjärde kvartalet 2022 samt det kapital som erhållits i samband med den riktade nyemissionen i mitten av december och efter avdrag för utestående banklån kommer Mahas likvidposition att överstiga Mahas nuvarande börssvärde, vilket ger Bolaget en möjlighet att genomföra nya opportunistiska förvärv.

De ovan nämnda händelserna illustrerar vad den nya företagsledningen I Maha kommer att arbeta med de kommande åren och kan summeras enligt följande: (i) finansiell optimering vilket kommer att förbättra Bolagets kapitalstruktur och kapitalallokering (ii) optimering av investeringar och rörelsekostnader för att erhålla oöverträffad avkastning på insatt kapital och (iii) leta efter nya opportunistiska investeringar som kan förvärvas till attraktiva ingångspriser och med potentiell skalbarhet i utökning av dess produktion.

I det fjärde kvartalet 2022 var den brasilianska produktionen fullt återställd då renoveringskampanjen slutfördes och samtliga produktionsbrunnar var tillbaka i produktion, med förbättrad artificiell lyftning och med nödvändig reparation av rörläckage genomförd. Tie-6-brunnen påbörjade vatteninjicering in i Agua Grande-formationen för att hjälpa till med att upprätthålla tryck och planerna på oljeåtervinning. I Tartaruga konverterades TTG-3-brunnen till en brunn för avyttring av vatten vilket kommer att eliminera nödvändigheten av att transportera vatten med lastbil från Sergipe till Bahiaprovinsen för behandling och kommer att reducera rörelsekostnaderna väsentligt. Stora framsteg gjordes i Oman genom att Mafraq Energy tilldelades 35 % av Mahas intresseandel. Bolaget ser nu fram emot att påbörja testning av dessa brunnar i närtid och ytterligare utvärdera Mafraqfältet. Bolaget kommer att informera om utvecklingen i Oman så fort som möjligt. Slutligen, är vår produktion i USA stabil i Illinoisbassängen med genomsnittlig produktion i kvartalet om 280 BOPD och med mindre underhåll genomfört för att upprätthålla produktion i alla brunnar.

Från en finansiell synvinkel var fjärde kvartalet 2022 ett övergångskvartal för Maha. Total produktion var 2 621 BOEPD och för helåret 3 213 BOEPD. Även om produktionen förbättrades från tredje kvartalet 2022 så var intäkter och nettoresultat för det fjärde kvartalet lägre på grund av minskande realiserade oljepriser jämfört med tredje kvartalet 2022 samt höga administrationskostnader till följd av transaktionerna som genomfördes under kvartalet. För helåret 2022 var intäkterna 89,8 miljoner USD jämfört med 68,3 miljoner USD för helåret 2021 motsvarande en ökning med 31,5 procent. Rörelsens netback för innevarande år påverkades av renoveringsarbeten och inflation; emellertid, uppgick Mahas rörelsens netback för 2022 till 60,7 miljoner USD vilket var mycket högre än för helåret 2021 då rörelsens netback uppgick till 46,1 miljoner USD. Maha stängde kvartalet med bruttoskulder om 46,1 miljoner USD och en likvidposition om 23,2 miljoner USD (inklusive likvida medel hänförligt till avvecklad verksamhet). Maha avslutade 2022 med EBITDA om 55,1 miljoner USD jämfört med 47,8 miljoner USD för 2021, vilket motsvarar en ökning om 15,3 procent på årsbasis.

Totalt sett, med ovan angivna information och siffror, som representerar en utmanande förändringsfas för Maha, arbetar Bolaget nu aktivt för att finna attraktiva möjligheter i syfte att skapa aktieägarvärde.

Med vänliga hälsningar

Paulo T. Arantes de Mendonça

Verkställande direktör

Q4 webbsändning imorgon 1 mars kl.18:30 CET

Det kommer att hållas en livepresentation imorgon den 1 mars kl. 18:30 CET (svensk tid) där bolagets ledning kommer att presentera kvartalsrapporten och ge en generell bolagsuppdatering. Länk till webbsändningen finns tillgänglig på bolagets hemsida www.mahaenergy.ca och sändningen visas också live på Nyhetsbyrån Direkts YouTube kanal. Frågor under presentationen ställs direkt i kommentarsfältet på YouTube.

Denna information är sådan information som Maha Energy AB (publ) är skyldigt att offentliggöra enligt EU:s marknadsmissbruksförordning. Informationen lämnades, genom nedanstående kontaktpersons försorg, för offentliggörande den 28 februari 2023, kl. 19:45 CET.

För mer information, kontakta:
Paulo Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Bernardo Guterres (CFO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Kort om Maha

Maha Energy AB (publ) är ett listat, internationellt uppströms olje- och gasbolag vars affärsverksamhet inkluderar prospektering, utveckling och produktion av råolja och naturgas. Strategin är att inrikta sig på att utveckla underpresterande kolvätetillgångar på en global basis. Maha är verksam på tre oljetillgångar, Block 70 i Oman samt LAK Ranch och Illinois Basin i USA. Bolagets aktier är listade på Nasdaq Stockholm (MAHA-A). Bolagets huvudkontor ligger i Stockholm, Sverige. Bolaget har även ett tekniskt kontor i Calgary, Kanada, samt operativa kontor i Grayville, Illionis, USA och i Rio de Janeiro, Brasilien. För mer information, vänligen besök vår hemsida www.mahaenergy.ca

Maha Energy AB Announces Filing of Fourth Quarter 2022 Report & 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.

Highlights
(all amounts are in US dollars unless otherwise noted)

Fourth Quarter 2022

  • The Company announced the signing of a binding term sheet envisioning a business combination with DBO 2.0 and expecting to close after obtaining the approval on Maha’s EGM on 29 March 2023.
  • The Company announced the sale of its Brazilian subsidiary for a total consideration of USD 186.9 million, with a purchase price of USD 138 million plus USD 9.3 million in net working capital adjustment, USD 3.7 million net cash adjustment, and USD 36.1 million to be paid upon successful achievement of earnout milestones.
  • The Company successfully completed a directed new share issue of 23.9 million shares and raised proceeds of approximately USD 20.0 million to reinforce the balance sheet.
  • Three new executive managers appointed, including new CEO, CFO and CLO.
  • Daily oil & gas production for Q4 2022 averaged 2,621 BOEPD (Q4 2021: 3,098 BOEPD) of which continuing operations averaged 280 BOEPD (Q4 2021: 247 BOEPD) and discontinued operations averaged 2,341 BOEPD (Q4 2021: 2,851).
  • Revenue of 17.3 million (Q4 2021: 17.8 million) of which 2.0 million (Q4 2021: 2.0 million) relates to the continuing operations and 15.3 million (Q4 2021: 15.8 million) relates to discontinued operations.
    • Operating netback of 9.8 million (Q4 2021: 11.9 million) of which 1.0 million (Q4 2021: 1.1 million) relates to the continuing operations and 8.8 million (Q4 2021: 10.8 million) relates to the discontinued operations.
  • EBITDA of 8.8 million (Q4 2021: USD 15.6 million) of which -1.3 million (Q4 2021: -0.5 million) relates to the continuing operations and 10.1 million (Q4 2021: 16.1 million) relates to the discontinued operations.
  • Net result of 0.1 million (Q4 2021: USD 7.4 million) of which -3.6 million (Q4 2021: -3.8 million) relates to the continuing operations and 3.7 million (Q4 2021: 11.1 million) relates to the discontinued operations.
    • Basic and Diluted earnings per share of 0.00 (Q4 2021: 0.06) of which basic and diluted earnings per share for the continued operations is -0.03 (Q4 2021: -0.03) and basic and diluted earnings per share for the discontinued operations is 0.03 (Q4 2021: 0.09).

Full Year 2022

  • Daily oil & gas production averaged 3,213 BOEPD in 2022 (2021: 3,387 BOEPD) of which continuing operations averaged 401 BOEPD (2021: 212 BOEPD) and discontinued operations averaged 2,812 BOEPD (2021: 3,175).
  • Revenue in 2022 of 89.8 million (2021: 68.3 million) of which 12.3 million (2021: 5.7 million) relates to the continuing operations and 77.5 million (2021: 62.6 million) relates to discontinued operations.
  • Operating netback in 2022 of 60.7 million (2021: 46.1 million) of which 6.5 million (2021: 2.9 million) relates to the continuing operations and 54.2 million (2021: 43.2 million) relates to the discontinued operations.
  • EBITDA in 2022 of 55.1 million (2021: 47.7 million) of which -0.4 million (2021: -2.2 million) relates to the continuing operations and 55.5 million (2021: 49.9 million) relates to the discontinued operations.
  • Net result for 2022 of 22.9 million (2021: 21.6 million) of which -12.5 million (2021: -13.3 million) relates to the continuing operations and 35.4 million (2021: 34.9 million) relates to the discontinued operations.
    • Basic and Diluted Earnings per share in 2022 of 0.19 (2021: 0.19) of which basic and diluted earnings per share for the continued operations is -0.10 (2021: -0.12) and basic and diluted earnings per share for the discontinued operations is 0.29 (2021: 0.31).
  • Cash and cash equivalents balance on 31 December 2022 of USD 23.2 million (2021: USD 25.5 million) of which 19.5 million (2021: 18.4 million) relates to the continuing operations and 3.7 million (2021: 7.2 million) relates to the discontinued operations.

Financial Summary
The table below relate to continuing and discontinued operations combined:

(TUSD, unless otherwise noted) Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
FY
2022
FY
2021
Net Daily Production (BOEPD) 2,621 2,389 3,292 4,580 3,098 3,213 3,387
Revenue 17,271 17,657 24,018 30,831 17,818 89,777 68,306
Operating netback 9,796 10,998 17,408 22,528 11,913 60,729 46,060
EBITDA 8,765 9,648 14,621 22,069 15,615 55,101 47,725
Net result for the period 93 2,593 8,219 12,030 7,363 22,933 21,587
Earnings per share –
Basic & Diluted (USD)
0.00 0.02 0.07 0.10 0.06 0.19 0.19
Cash and cash equivalents 23,228 11,338 23,863 29,416 25,535 23,228 25,535

The table below presents the highlights of the continuing operations:

(TUSD, unless otherwise noted) Q4
2022
Q4
2021
FY
2022
FY
2021
Net Daily Production (BOEPD) 280 247 401 212
Revenue 1,991 1,978 12,327 5,732
Operating netback 1,002 1,096 6,523 2,882
EBITDA (1,335) (522) (420) (2,201)
Net result for the period (3,579) (3,774) (12,529) (13,339)
Earnings per share – Basic & Diluted (USD) (0.03) (0.03) (0.10) (0.12)
Cash and cash equivalents 19,520 18,370 19,520 18,370

The table below presents the highlights of the discontinued operations:

(TUSD, unless otherwise noted) Q4
2022
Q4
2021
FY
2022
FY
2021
Net Daily Production (BOEPD) 2,341 2,851 2,812 3,175
Revenue 15,280 15,840 77,450 62,574
Operating netback 8,794 10,817 54,206 43,178
EBITDA 10,100 16,137 55,521 49,926
Net result for the period 3,672 11,137 35,462 34,926
Earnings per share – Basic & Diluted (USD) 0.03 0.09 0.29 0.31
Cash and cash equivalents 3,708 7,165 3,708 7,165

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

The fourth quarter of 2022 triggered a transformational moment for Maha with the incorporation as shareholder of the Investment Fund managed by Starboard, a Brazilian private equity firm, becoming the largest shareholder with 19.9% ownership. This significant change on Maha’s shareholder structure, board of directors and management, brought renewed leadership and sectorial expertise with successful track-record in the Latin American energy industry.

Among the changes that happened since last November, it is important to highlight the following events:

  1. Changes in the Board of Directors: Three new directors were indicated as Maha’s Board Members with an extensive general management and finance background in the energy industry, specifically in junior oil & gas companies (Fabio Vassel and I are both former founders and chairmen of 3R Petroleum, a USD 2.0 billion Brazilian oil & gas listed company);
  2. Changes in the Management: Three new executive managers joined Maha in the last quarter:
    1. I, Paulo Mendonça was also indicated as Chief Executive Officer, renewing Maha’s leadership;
    2. Bernardo Guterres was indicated as the new Chief Finance Officer of Maha, bringing all his knowledge and expertise from a 15-year career within top tier international banks and high ranked Brazilian private equity firms, with the mission of optimizing the Company’s current capital structure and to lead the exciting and important M&A strategy;
    3. Barbara Bittencourt was indicated as Chief Legal and Compliance Officer, a new executive position in the Company. The main objective was to bring technical and legal support within a sector that have lots of complex regulatory frameworks throughout different countries. Barbara has an extensive career as partner in top tier legal firms, with the past 10 years exclusively dedicated to the oil & gas market.
  3. In the beginning of December 2022, Maha and DBO 2.0 (“DBO”) signed a binding term sheet envisioning a business combination among the companies. DBO has 15% equity interest in 3R Offshore, which owns and operates two offshore clusters in Brazil – Papa Terra and Peroá. When closed, this deal shall bring an interesting value for Maha’s shareholders as it will be executed at an attractive entry multiple of 0.2x P/NAV (issuance of 36.8 million shares). Upon closing, this transaction will increase Maha’s net 2P reserves with ~18.5 million BOE and is estimated to add ~2,000 BOEPD net production in 2023 with further upside through ramp-up at Papa Terra, and Peroá fields, as well as the potential Malombe development (part of Peroá cluster). The transaction reinforces the construction of a diversified portfolio balanced between mature oil and gas onshore and offshore assets with a cash-flow oriented approach. The closing of this transaction is expected to happen after the approval on Maha’s EGM on 29 March 2023.
  4. During mid December 2022, Maha successfully raised approximately USD 19 million (net of fees) through a direct share issue, improving and enhancing its previous capital structure and bringing a new base of shareholders that have a long-term investment profile. This capital raise strengthened the Company’s investor base, attracting new institutional and international investors.
  5. During the last week of December 2022, Maha signed the sale of its Brazilian subsidiary Maha Brazil to Petroreconcavo, a Brazilian listed junior oil & gas company with current market cap of approximately USD 2.0 billion, for total acquisition consideration that can reach USD 186.9 million. Considering the proceeds of the sale of the Brazilian assets (including earn-outs) together with the cash at the end of Q4 2022 and the proceeds from the capital raise in mid-December, minus the outstanding bank debt, Maha’s cash position would be higher than its current market capitalization, giving the Company ability to pursue new opportunistic acquisitions.

The above mentioned events illustrates what the new management of Maha is pursuing for the upcoming years, which can be summarized as: (i) financial optimization, improving the Company’s capital structure and capital allocation; (ii) optimization of CAPEX and OPEX to capture superior returns out of the deployed capital; and (iii) search for opportunistic targets that can be acquired at attractive entry prices and with potential scalability within its production ramp-up.

During Q4 2022, the Brazilian production was fully recovered with the workover campaign successfully completed and all production wells back on stream, with improved artificial lift and tubing leaks repaired as required. The Tie-6 well commenced water injection into the Agua Grande formation to aid in pressure maintenance and oil recovery plans. In Tartaruga, the TTG-3 well was converted to a water disposal well for produced water which will eliminate the need to truck water from Sergipe to Bahia province for treating and will reduce operating costs significantly. Good progress was made in Oman with the conclusion of the assignment of Maha’s 35% work interest to Mafraq Energy. The Company is now looking forward to start testing these wells in the near-term and further appraising the Mafraq field. The Company will update the market of its developments in Oman as soon as possible. Finally, in the US our production was very stable in the Illinois Basin and averaged 280 BOPD over the quarter with minor maintenance workovers carried out to keep all wells producing.

From a financial standpoint, Q4 2022 was a transitional quarter for Maha. Total production was 2,621 BOEPD and for the full year was 3,213 BOEPD. Even though the production improved from the third quarter 2022, revenues and net results for the fourth quarter were lower due to decreasing realized oil price compared to the third quarter 2022 and high general and administrative costs relating to the transactions occurred during the quarter. For the full year 2022 revenue was USD 89.8 million compared to full year 2021 revenue of USD 68.3 million, representing a 31.5% increase. Operating netback for the current year was impacted by workover costs and inflation; however, Maha’s full year 2022 operating netback of USD 60.7 million was much higher than the full year 2021 operating netback of USD 46.1 million. Maha closed the quarter with gross debt of USD 46.1 million and a cash position of USD 23.2 million (including cash relating to the discontinued operations). Maha ended the year 2022 with EBITDA of USD 55.1 million compared to EBITDA of USD 47.8 million for 2021, an increase of 15.3% on a year over year basis.

Overall, with the above information and figures, which represent a challenging transition phase for Maha, the Company is now actively working in pursuing attractive opportunities to create value for its shareholders.

Yours sincerely, 

Paulo T. Arantes de Mendonça (CEO)

Q4 Webcast tomorrow 1 March at 18:30 CET

There will be a live webcast tomorrow, on 1 March at 18:30 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 the Company Laika and will feature representatives from Maha.

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 19:45 CET on February 28, 2023.

For more information, please contact:

Paulo Mendonça (CEO)
Tel: +46 8 611 05 11
info@mahaenergy.ca

Bernardo Guterres (CFO)
Tel: +46 8 611 05 11
info@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 three oil assets: Block-70 (Oman), 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 Announces Filing of Fourth Quarter 2021 Report & 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 2021

  • Daily oil & gas production for Q4 2021 averaged 3,098 BOEPD (Q4 2020: 2,738 BOEPD)
  • Revenue of USD 17.8 million (Q4 2020: USD 8.7 million)
  • Operating netback of USD 11.9 million or USD 42.37 per BOE (Q4 2020: USD 4.2 million or USD 17.66 per BOE)
  • EBITDA of USD 15.6 million (Q4 2020: USD 2.7 million)
  • Net result of USD 7.4 million (Q4 2020: USD -15.7 million)
  • Basic Earnings per share of USD 0.06 (Q4 2020: USD -0.15)
  • Diluted Earnings per share of USD 0.06 (Q4 2020: USD -0.15)
  • Subsequent to year end, the company announced 24-hour test results of 4,400 BOPD and 1,766 MSCFPD (4,695 BOEPD) on the Tie-4 well using an Electric Submersible Pump (ESP).
  • On January 25th 2022, the Tie-5 Agua Grande (AG) horizontal well in Brazil was spudded.

Full Year 2021

  • Daily oil & gas production for 2021 averaged 3,387 BOEPD (2020: 3,301 BOEPD)
  • Revenue of USD 68.3 million (2020: USD 39.0 million)
  • Operating netback of USD 46.1 million or USD 38.18 per BOE (2020: USD 23.5 million or USD 20.06 per BOE)
  • EBITDA of USD 47.7 million (2020: USD 18.1 million)
  • Net result for the period of USD 21.6 million (2020: USD -10.3 million)
  • Basic Earnings per share of USD 0.19 (2020: USD -0.10)
  • Diluted Earnings per share of USD 0.19 (2020: USD -0.10)
  • Cash and cash equivalents balance of USD 25.5 million (2020: USD 6.7 million)

Financial Summary

(TUSD, unless otherwise noted) Q4 2021 Q3 2021 Q2 2021 Q1
2021
Q4
2020
FY
2021
FY
2020
Net Daily Production (BOEPD) 3,098 3,610 3,104 3,742 2,738 3,387 3,301
Revenue 17,818 19,496 15,178 15,814 8,659 68,306 39,018
Operating netback 11,913 13,568 9,548 11,031 4,247 46,060 23,523
EBITDA 15,615 12,909 8,988 10,213 2,720 47,725 18,104
Net result for the period1 7,363 6,083 2,603 5,538 (15,702) 21,587 (10,259)
Earnings per share – Basic (USD) 0.06 0.05 0.02 0.05 (0.15) 0.19 (0.10)
Earnings per share – Diluted (USD) 0.06 0.05 0.02 0.05 (0.15) 0.19 (0.10)
Cash and cash equivalents 25,535 31,778 34,139 5,698 6,681 25,535 6,681

Letter to shareholders

Tie-4    4,695 BOEPD
After experiencing severe hole problems trying to land the Tie-4 well as a horizontal producer in the Agua Grande (AG) reservoir, it was decided to reconfigure the well to a vertical producer.  Once the well was plugged back and sidetracked, it did not take long to reach the total depth of 2,221 m on December 17th, 2021.  Initial rig based production tests gave preliminary indications of what was to come, and when the new Electric Submersible Pump (ESP) was finally engaged a month later, it quickly became evident that Tie-4 was to become a record well for Maha.  It is the best producing well ever drilled in the Company’s short history, and in Brazil it ranks as the third best well ever drilled onshore Brazil.  In fact, during the testing operations, all but one well had to be temporarily shut in to accommodate the oil production from Tie-4.

Niclas Biornstad, Maha’s Production Manager in Brazil, laughed and said: “We had a little friendly wager going to see who could predict the production rate of Tie-4 before we started the ESP.  One of our Operators, Ronald Santos, came closest by estimating 3,600 BOEPD.” 
The ESP, a first for Maha in the Tie field, was only working at a third of its’ potential power suggesting there is more production available.  But with a rate of 4,695 BOEPD, the production facility was being put through its’ paces.
 
Tie-4 is now hooked up to the Tie production facilities and producing according to plan.  All wells are back on production and the field staff are busy balancing production from all six producers.  

Tie Field
Going forward on the Tie field, the GTE-3 well requires a workover to fix a leak in the tubing.  This well will also be recompleted with an ESP. The ESP allows for greater drawdown of the reservoir, which translates to higher production volumes compared to a hydraulic jet pump.  A drawback of the ESP, however, is that if it breaks it requires a rig assisted intervention, which is costly and takes valuable time.

Furthermore, the Tie-3 well is being converted to a edge water injector to provide important reservoir pressure maintenance.  Reservoir pressure maintenance benefits ultimate oil recovery and reduces gas production from the wells.  Finally, the ALV-2 water injector requires a tubing change to accommodate gas re-injection.

These planned workovers and the planned hook up of the Tie-5 well will affect Tie production volumes during 2022.

Tie-5 – an important horizontal well
The Tie-5 well was spudded on January 25, 2022 and is currently drilling in the main 12-1/4” hole.  Significant changes have been made to the well design to address the drilling obstacles encountered whilst trying to land the Tie-4 well. Changes include; deepening of the 9-5/8” casing shoe, drilling the troublesome Lower Candeias in a shorter section and maintaining a wellbore inclination less than 60 degrees. The Tie-5 well will also be completed using an ESP.

Completion of the Tie-5 well is expected during the second quarter of this year and will provide important spare production capacity to the Tie field.  The 500 meter horizontally completed well will access up to 4 times more oil than a conventional vertical producer. And more importantly, it will also serve as swing producer so that the production plateau can be maintained even if a well goes down for maintenance.

Oman
The Mafraq team have been busy procuring long lead items and services for the upcoming drilling program in Oman.  At the moment, three drilling rigs are being evaluated with a view to start drilling sometime during the second quarter of 2022.

Illinois Basin (IB)
At our IB properties, Hayden Ott and his team have been busy hooking up all the wells drilled last year to production tanks.  At the end of 2021, all wells had been hooked up and all but one were producing oil. Production rates are as expected and although five wells took longer to dewater stimulation fluids than expected, February (to date) average production is 476 BOPD.  The last well, Ford-35-3, is now hooked up to a pump and is showing signs of good oil production as well.

Even though the price of oil is conducive for drilling more wells in IB, the Company will continue to further evaluate production results from the twelve wells drilled during 2021 before deciding on further drilling in 2022. However, two commitment wells will be drilled during the first half of 2022.

Since the oil price collapse of 2014, and the ensuing pandemic of 2020/21, the oil industry has been hit hard.  Capital investment into the industry has suffered and as demand continues to grow unabated, despite calls for the great energy transition, the world is now finding it-self short of oil and gas. Maha is well positioned in this very exciting industry to deliver more barrels and more gas as demand continues to increase. With the addition of Oman, where approximately half of the Company’s future reserves and resources are located, Maha is poised for further growth.  Maha has gone from 1,000 BOEPD in 2017 to 4,275 BOEPD in January, 2022 – and that with a pandemic to boot.

Finally, I wish to thank my fellow Maha colleagues who work so tirelessly for all of us, and to all loyal shareholders who support us.  Thank you!

Yours truly,

Jonas Lindvall
Managing Director

Q4 Webcast today at 16:00 CET

There will be a live webcast today, 28 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 07:30 CET on 28 February, 2022.

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


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

Maha Energy AB meddelar resultat för fjärde kvartalet 2021 och inbjudan till webcast

Maha Energy AB (publ) (“Maha” eller “bolaget”) presenterar resultatet för fjärde kvartalet 2021. Rapporten är bifogad i detta pressmeddelandet och finns även tillgänglig på bolagets hemsida  www.mahaenergy.ca.

Fjärde kvartalet 2021

  • Genomsnittlig dagsproduktion av olja och gas för det fjärde kvartalet 2021 var 3 098 fat oljeekvivalenter per dag (BOEPD) (Q4 2020: 2 738 BOEPD)
  • Intäkter om 17,8 miljoner USD (Q4 2020: 8,7 miljoner USD)
  • Rörelsens netback uppgick till 11,9 miljoner USD eller 42,37 USD per fat oljeekvivalenter (BOE) (Q4 2020: 4,2 miljoner USD eller 17,66 USD per BOE)
  • EBITDA om 12,7 miljoner USD (Q4 2020: 2,7 miljoner USD)
  • Periodens resultat uppgick till 5,6 miljoner USD (Q4 2020: -15,7 miljoner USD)
  • Vinst per aktie före utspädning om 0,05 USD (Q4 2020: -0,15 USD)
  • Vinst per aktie efter utspädning om 0,05 USD (Q4 2020: -0,15 USD)
  • Efter räkenskapsårets utgång meddelade Bolaget att resultatet från 24-timmarstestet på Tie-4-brunnen uppgick till 4 400 BOPD och 1 766 MSCFPD, med användande av en elektrisk nedsänkbar pump (ESP).
  • Den 25 januari 2022 påbörjades borrningen av den horisontella brunnen Tie-5 Agua Grande (AG) i Brasilien.

Helåret 2021

  • Genomsnittlig dagsproduktion av olja och gas för 2021 var 3 387 BOEPD (2020: 3 301 BOEPD)
  • Intäkter om 68,3 miljoner USD (2020: 39,0 miljoner USD)
  • Rörelsens netback uppgick till 46,1 miljoner USD eller 38,18 USD per BOE (2020: 23,5 miljoner USD eller 20,06 USD per BOE)
  • EBITDA om 44,8 miljoner USD (2020: 18,1 miljoner USD)
  • Årets resultat uppgick till 19,8 miljoner USD (2020: -10,3 miljoner USD)
  • Vinst per aktie före utspädning om 0,18 USD (2020: -0,10 USD)
  • Vinst per aktie efter utspädning om 0,18 USD (2020: -0,10 USD)
  • Likvida medel om 25,5 miljoner USD (2020: 6,7 miljoner USD)

Finansiell information i sammandrag

(TUSD, om ej annat anges) Q4 2021 Q3 2021 Q2 2021 Q1
2021
Q4
2020
Helår 2021 Helår
2020
Dagsproduktion, netto (BOEPD) 3 098 3 610 3 104 3 742 2 738 3 387 3 301
Intäkter 17 818 19 496 15 178 15 814 8 659 68 306 39 018
Rörelsens netback 11 913 13 568 9 548 11 031 4 247 46 060 23 523
EBITDA 15 615 12 909 8 988 10 213 2 720 47 725 18 104
Periodens resultat1 7 363 6 083 2 603 5 538 (15 702) 21 587 (10 259)
Vinst per aktie – före utspädning (USD) 0,06 0,05 0,02 0,05 (0,15) 0,19 (0,10)
Vinst per aktie – efter utspädning (USD) 0,06 0,05 0,02 0,05 (0,15) 0,19 (0,10)
Likvida medel 25 535 31 778 34 139 5 698 6 681 25 535 6 681

Brev till Aktieägare

Kära vänner och aktieägare i Maha Energy AB,

Tie-4 – 4 695 BOEPD

Efter omfattande problem i Tie-4-brunnen vid försöken att få den till en horisontell produktionsbrunn i Agua Grande-reservoaren tog vi beslutet att konfigurera brunnen till en vertikal produktionsbrunn. Så snart brunnen var igenpluggad och sidoborrad så gick det snabbt att nå ett totalt djup om 2 221 meter den 17 december 2021. De initiala riggbaserade produktionstesterna gav tidigt en indikation om vad vi kunde förvänta oss, och när den nya elektriska nedsänkbara pumpen (ESP) startades blev det snart uppenbart att Tie-4 skulle bli en rekordbrunn för Maha. Det är den bäst producerande brunnen under vår korta historia och i Brasilien rankas den som den tredje bästa brunnen som borrats på land i Brasilien. Faktum är att under testning av Tie-4-brunnen behövde vi temporärt stänga ner alla brunnar utom en för att kunna hantera de stora volymerna som kom från brunnen.

Niclas Biornstad, Mahas produktionschef i Brasilien skrattade och berättade: ”Vi hade ett litet vad på produktionsanläggningen om vem som bäst kunde estimera produktionsnivån på Tie-4 innan vi startade den nya ESP:n. En av våra operatörer, Ronald Santos, var närmast med  sin gissning på 3 600 BOEPD.”

 

ESP:n, som är Mahas första på Tiefältet, gick på en tredjedel av dess potential vilket indikerar att det finns mer produktion att hämta. Men med en nivå om 4 695 BOEPD testades produktionsanläggningens kapacitet till sitt fullo.

   

Tie-4 är nu permanent ansluten till produktionsanläggningen på Tiefältet och producerar enligt plan. Alla brunnar är tillbaka i produktion och fältpersonalen är i full färd med att balansera produktionen från alla sex produktionsbrunnarna.

Tiefältet

GTE-3-brunnen kommer att behöva genomgå renoveringsarbete för att åtgärda en rörläcka. Brunnen kommer att färdigställas med en ESP vilket möjliggör högre produktionsvolymer jämfört med en hydraulisk jetpump. En nackdel med ESP är dock att om den går sönder så måste man mobilisera en rigg för att kunna åtgärda skadan, vilket är dyrt och tar tid.

Tie-3-brunnen konverteras nu till en vatteninjiceringsbrunn för att upprätthålla nödvändigt reservoartryck, vilket påverkar oljeproduktionen positivt och reducerar gasproduktionen från fältet. Vatten- och gasinjektorn ALV-2 behöver sedan ett rörbyte för att kunna hantera återinjicering av gas.

Ovan planerade renoveringsarbeten och den planerade anslutningen av Tie-5-brunnen kommer att påverka produktionsvolymerna på Tiefältet under 2022.

Tie-5 – en viktig horisontell brunn

Borrningen av Tie-5-brunnen påbörjades den 25 januari 2022 och borras för närvarande i 12-1/4” hålet. Vi har gjort väsentliga designförändringar av brunnen för att adressera de borrproblem som uppstod då Tie-4-brunnen borrades. Väsentliga förändringar inkluderar djupare sättning av 9-5/8” röret och borrning av den problematiska Lower Candeias i en kortare sektion samtidigt som vinkeln hålls under 60°. Tie-5 kommer också att färdigställas med en ESP-pump.

Tie-5-brunnen förväntas färdigställas under andra kvartalet i år och kommer att ge en väsentlig reservproduktionskapacitet till Tiefältet. Den 500 meter horisontala brunnen kommer att nå upp till fyra gånger mer olja än en konventionell vertikal brunn. Än viktigare är att den kommer att fungera som en ”reservtank” för fältet så att produktionsnivån kan upprätthållas om en brunn behöver stängas för renovering.

Oman

Vårt Mafraqteam har varit engagerat i att köpa in material och tjänster för det kommande borrprogrammet i Oman. För tillfället utvärderas tre borriggar i syfte att kunna påbörja borrning någon gång under andra kvartalet 2022.

Illinoisbassängen

Vid våra Illinoisbassängtillgångar har Hayden Ott och hans team arbetat med att ansluta alla brunnar som borrades under tredje kvartalet till produktionsinstallationer. I slutet av 2021 hade alla brunnar anslutits och alla brunnar förutom en producerade olja. Produktionsnivåerna är i princip som förväntat och trots att fem brunnar tog längre tid än förväntat att avvattna är den genomsnittliga produktionsvolymen 476 BOPD hittills under februari. På den sista brunnen, Ford-35-3, har en pump anslutits och den visar nu också tecken på oljeproduktion.

Även om oljepriset lockar till att borra flera brunnar i Illinoisbassängen kommer vi att utvärdera produktionsresultaten från de tolv brunnar som vi borrade under 2021 innan vi fattar beslut om fortsatt utveckling under 2022. Den första av de två brunnar som vi har åtagande att borra kommer att borras under första kvartalet 2022. Den andra, en joint venture-brunn, kommer att borras lite senare, beroende på när en rigg finns tillgänglig.

Sedan oljepriskollapsen 2014 och den efterföljande pandemin under 2020/21 har oljeindustrin tagit mycket stryk. Investeringarna i industrin har minskat och då efterfrågan fortsätter att öka i oförminskad takt, trots starka röster om energiomställning, råder nu underskott av olja och gas i världen. Maha är väl positionerat för att kunna leverera fler fat och mer gas i takt med att efterfrågan fortsätter att öka. Maha har gått från 1 000 BOEPD i 2017 till 4 275 BOEPD i januari 2022 – och det under en pågående pandemi. Med Oman, där cirka hälften av bolagets framtida reserver och resurser finns, är vi väl positionerade att fortsätta växa.

Slutligen vill jag tacka alla medarbetare på Maha som oförtrutet jobbar för oss alla, och till alla aktieägare som stöder oss. Stort tack!

Jonas Lindvall,
Verkställande direktör
Maha Energy AB

Q4 webbsändning idag kl.16:00 CET

Det kommer att hållas en livepresentation idag den 28 februari kl. 16:00 CET (svensk tid) där bolagets VD Jonas Lindvall och CFO Andres Modarelli kommer att presentera kvartalsrapporten och ge en generell bolagsuppdatering. Länk till webbsändningen finns tillgänglig på bolagets hemsida www.mahaenergy.ca och sändningen visas också live på Nyhetsbyrån Direkts YouTube kanal. Frågor under presentationen ställs direkt i kommentarsfältet på YouTube.

Denna information är sådan information som Maha Energy AB (publ) är skyldigt att offentliggöra enligt EU:s marknadsmissbruksförordning. Informationen lämnades, genom nedanstående kontaktpersons försorg, för offentliggörande den 28 februari 2022, kl. 07:30 CET.

För mer information, kontakta:        
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

Kort om Maha

Maha Energy AB (publ) är ett listat, internationellt uppströmsolje- och gasbolag vars affärsverksamhet inkluderar prospektering, utveckling och produktion av råolja och naturgas. Strategin är att inrikta sig på att utveckla underpresterande kolvätetillgångar på en global basis. Maha är verksam på fyra oljefält, Tartaruga- och Tiefältet i Brasilien samt LAK Ranch och Illinois Basin i USA. Bolagets aktier är listade på Nasdaq Stockholm (MAHA-A). Bolagets huvudkontor ligger i Stockholm, Sverige. Bolaget har även ett tekniskt kontor i Calgary, Kanada, samt operativa kontor i Grayville, Illionis, USA och i Rio de Janeiro, Brasilien. För mer information, vänligen besök vår hemsida www.mahaenergy.ca


1 Periodens resultat för fjärde kvartalet 2020 och helåret 2020 inkluderar en nedskrivning om 21 miljoner USD.

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 meddelar resultat för fjärde kvartalet 2020 och inbjudan till webcast

Maha Energy AB meddelar resultat för fjärde kvartalet 2020 och inbjudan till webcast

Maha Energy AB (publ) (“Maha” eller “bolaget”) presenterar resultatet av fjärde kvartalet 2020. Rapporten är bifogad i detta pressmeddelandet och finns även tillgänglig på bolagets hemsida  www.mahaenergy.ca.

Fjärde kvartalet 2020

  • Genomsnittlig dagsproduktion av olja och gas var 2 738 fat oljeekvivalenter per dag (BOEPD) (2019 Q4: 3 165 BOEPD)
  • Intäkter om 8,7 miljoner USD (2019 Q4: 13,7 miljoner USD)
  • Rörelsens netback om 4,2 miljoner USD eller 17,66 USD per fat oljeekvivalenter (BOE) (2019 Q4: 9,8 miljoner USD eller 35,00 USD per BOE)
  • EBITDA om 2,7 miljoner USD (2019 Q4: 8,4 miljoner USD)
  • Periodens resultat uppgick till -15,7 miljoner USD till följd av tidigare kommunicerad nedskrivning på 21,0 miljoner USD avseende LAK Ranch (2019 Q4: 2,7 miljoner USD)
  • Vinst per aktie före utspädning om -0,15 USD (2019 Q4: 0,03 USD)
  • Vinst per aktie efter utspädning om -0,15 USD (2019 Q4: 0,02 USD)
  • Tilldelades ett nytt prospekteringsblock, Block 70 (Mafraq) i Oman
  • Borrade och färdigställde Tie-2-källan på Tiefältet och påbörjade borrning av Tie-3-källan den 18 december 2020
  • Reserversättningsgraden (2P) för 2020 var 380% (2019 Q4: 147%)
  • Bevisade reserver (1P) utökades med 183 % främst till följd av överföring av volymer från kategorin bevisade och sannolika reserver (2P) samt förvärv i USA och Oman. 2P-reserverna ökade med cirka 14% jämfört med årsskiftet 2019/2020
  • Listbyte och påbörjad handel på Nasdaq Stockholms huvudlista (MAHA-A.ST) den 17 december 2020

      
Helåret 2020

  • Genomsnittlig dagsproduktion av olja och gas var 3 301 BOEPD (2019: 3 044 BOEPD).
  • Intäkter om 39,0 miljoner USD (2019: 55,6 miljoner USD)
  • Rörelsens netback om 23,5 miljoner USD eller 20,06 USD per BOE (2019: 41,5 miljoner USD eller 38,96 USD per BOE)
  • EBITDA om 18,1 miljoner USD (2019: 35,9 miljoner USD)
  • Årets resultat uppgick till -10,3 miljoner USD till följd av tidigare kommunicerad nedskrivning om 21,0 miljoner USD avseende LAK Ranch (2019: 19,7 miljoner USD)
  • Vinst per aktie före utspädning om -0,10 USD (2019: 0,20 USD)
  • Vinst per aktie efter utspädning om -0,10 USD (2019: 0,18 USD)
  • Likvida medel om 6,7 miljoner USD (2019: 20,4 miljoner USD)

 

Finansiell information i sammandrag

(TUSD, om ej annat anges) Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Helår 2020 Helår
2019
Dagsproduktion, netto (BOEPD) 2 738 3 580 3 602 3 288 3 165 3 301 3 044
Intäkter 8 659 11 226 7 926 11 207 13 672 39 018 55 589
Rörelsens 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
Periodens resultat1 (15 702) 1 845 407 3 191 2 679 (10 259) 19 654
Vinst per aktie – före utspädning US$ (0,15) 0,02 0,00 0,03 0,03 (0,10) 0,20
Vinst per aktie – efter utspädning US$ (0,15) 0,02 0,00 0,03 0,02 (0,10) 0,18
Likvida medel 6 681 18 034 15 699 19 190 22 450 6 681 22 450

1 Periodens resultat för fjärde kvartalet och helåret 2020 inkluderar en nedskrivning om 21 miljoner USD.

Brev till Aktieägare

Kära vänner och aktieägare i Maha Energy AB,

En kombination av oförutsedda händelser gjorde det sista kvartalet under 2020 till ett utmanande kvartal för Bolaget. Först, och pga Covid-19, sköts borrningarna av Tie-2 och Tie-3 upp vilket innebar en senareläggning av delar av årets produktion. För det andra så fastnade borr-strängen i Tie-2 hålet – inte 1 gång utan 2 gånger – vilket innebar oönskade kostnader och fortsatt försenad produktion på Tie fältet. För det tredje, det oväntade och tillfälliga vattenflödesproblemet i Agua Grande-(AG) zonen på Tie-1 brunnen orsakade en temporär produktionsminskning under det sista kvartalet. Slutligen, den fortsatta och problematiska GTE-4 renoveringen på Tie-fältet krävde flera återinträden vilket innebar högre renoveringskostnader och försenad produktion. Alla dessa händelser påverkade inte bara produktionsplanen för kvartalet men för även för hela året 2020.

Trots detta så avslutades 2020 som ett rekordår för Maha vad gäller genomsnittlig produktion (dock under våra förväntningar) och med ett positivt operativt kassaflöde från den löpande verksamheten om 19 miljoner USD. Med investeringar om cirka 20 miljoner USD (exklusive förvärv) så har bolaget nästan varit själv finansierat under 2020 vilket är enastående bedrift givet den påverkan Covid-19 har haft på oljepriser, logistik och hälsa.

Vid slutet av 2020 var Tie-2 borrningen slutligen klar och testade över 2 000 fat olje-ekvivalenter per dag vilket var klart över förväntningarna. Dessutom så påfanns AG-zonen in något högre position på strukturen än förväntat och reservoartrycket var också högre än förväntat. Båda dessa resultat var mycket positiva. Tie-1 (AG) produktionen återupprättades före årsskiftet och GTE-4-källan blev slutligen färdigställd efter flera månader av problematiska återinträden. Under januari månad flödestestades GTE-4-källan och nu inväntas en ny pump-installation. I förväntan av minskat reservoartryck beställdes två helt nya quintuplexpumpar i april förra året.  En av dessa skall nu installeras på GTE-4. När pumpen väl installerats kommer GTE-4 brunnen bidra med ytterligare ca 500 fat olja om dagen.

Borrningen av Tie-3-källan förväntas färdigställas under det första kvartalet av 2021. För närvarande, och utan bidrag från GTE-4, producerar Tie-fältet ca 3 100 fat olja per dag, så denna källa kommer att bli ett välkommet tillskott till de nuvarande produktionsvolymerna vid Tie-fältet. När Tie-3 är färdigställd så kommer borriggen att flyttas för att borra Tie-fältets första horisontella borrhål (förutsatt ett miljö-tillstånd). När det horisontella hålet är borrat, färdigställt och anslutet så kommer Tie-fältet att ha rejält med extra produktionskapacitet så att påverkan av de eventuella oplanerade (och kostsamma) produktionsavbrott blir mindre.

Under fjärde kvartalet så noterades Maha vid Nasdaq Stockholm vilket är positivt för bolaget. Processen var lång men till stor nytta. Den tidigare gedigna bolagsstyrningen är nu än mer gedigen. Nuvarande ESG-klimat och sentimentet emot fossila bränslen i Skandinavien är en utmaning för alla bolag verksamma i den fossila energisektorn, och genom att listas på ”huvudlistan” så tydliggör det att ESG är djupt rotat i Maha. Men, efter att ha sagt det, så är Maha Energy, trots allt, ett olje- och gasproduktionsbolag. Vi producerar olja, gas och energi. Vi är del av en industri som tillhandahåller 85 procent av det globala energibehovet. Vi är stolta att betraktas som en av de mer positivt bidragande olje-bolagen då att vi genom vår expertis och teknologi utvinner kolväten som annars skulle ha lämnats kvar i backen. Dessutom slösar vi inga av de resurser vi producerar. I Brasilien, till exempel, omvandlar vi associerad gas till energi och därigenom gör vi energicykeln än mer effektiv. Vi använder oss också av det vatten som vi producerar och återinjicerar det i våra reservoarer så att vi kan utvinna ännu mer kolväten.

Även om 2020 var utmanande för Maha, så var det också ett år då vi ökade investeringstakten genom att tillägga Mafraq (Oman) och Illinois Basin (USA) till våran grundläggande tillgångs-portfölj.  Bägge dessa låg-risk tillgångar är av högsta kvalitet som tillsammans utökat våra 2P reserver med ca 3 miljoner fat och lagt till ca 22 miljoner fat i (2C) betingande resurser.   2P reserversättning graden för 2020 utgick till 380 procent och visar vilken stark grund Bolaget nu står, och kan bygga, på.

2021 har redan startat positivt för oss på Maha. Oljepriset är upp med över 50 procent sedan den lägsta nivån i det fjärde kvartalet. Produktionen har ökat på alla våra tillgångar. Vi har lagt grunden för en väsentlig produktionsökning i alla våra huvudområden; Brasilien, Oman och USA.

Aktieägare, kollegor och vänner, det känns som att vi är i början av bättre tider. Tack för er fortsatta support och tack alla medarbetare på Maha som jag vet arbetar så hårt för oss alla!

Ta hand om er och varandra, och framförallt önskar jag er alla god hälsa.

 “Jonas Lindvall”
Verkställande direktör

Q4 webbsändning idag kl.16:00 CET

Det kommer att hållas en livepresentation idag den 26 februari kl. 16:00 CET (svensk tid) där bolagets VD Jonas Lindvall och CFO Andres Modarelli kommer att presentera kvartalsrapporten och ge en generell bolagsuppdatering. Länk till webbsändningen finns tillgänglig på bolagets hemsida www.mahaenergy.ca och sändningen visas också live på Nyhetsbyrån Direkts YouTube kanal. Frågor under presentationen ställs direkt i kommentarsfältet på YouTube.

Denna information är sådan information som Maha Energy AB (publ) är skyldigt att offentliggöra enligt EU:s marknadsmissbruksförordning. Informationen lämnades, genom nedanstående kontaktpersons försorg, för offentliggörande den 26 februari, 2021, kl. 0300 CET.

För mer information, kontakta:        
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

 

Kort om Maha

Maha Energy AB (publ) är ett listat, internationellt uppströmsolje- och gasbolag vars affärsverksamhet inkluderar prospektering, utveckling och produktion av råolja och naturgas. Strategin är att inrikta sig på att utveckla underpresterande kolvätetillgångar på en global basis. Maha är verksam på fyra oljefält, Tartaruga- och Tiefältet i Brasilien samt LAK Ranch och Illinois Basin i USA. Bolagets aktier är listade på Nasdaq Stockholm (MAHA-A). Bolagets huvudkontor ligger i Stockholm, Sverige. Bolaget har även ett tekniskt kontor i Calgary, Kanada, samt operativa kontor i Grayville, Illionis, USA och i Rio de Janeiro, Brasilien. För mer information, vänligen besök vår hemsida www.mahaenergy.ca


1 Periodens resultat för fjärde kvartalet och helåret 2020 inkluderar en nedskrivning om 21 miljoner USD.

 

 

Maha Energy AB Announces Filing of Fourth Quarter Report & Live Webcast

Maha Energy AB (publ)
Strandvägen 5A
SE-114 51 Stockholm
www.mahaenergy.ca

                                   
Press release
Stockholm
28 February 2020
                                                                                                  

Maha Energy AB Announces Filing of Fourth Quarter Report & 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 2019

  • Daily oil & gas production for Q4 2019 averaged 3,165 BOEPD (Q4 2018: 2,454 BOEPD)
  • Revenue of USD 13.7 million (Q4 2018: USD 12.6 million)
  • Operating netback of USD 9.8 million or USD 35.00 per BOE (Q4 2018: USD 9.4 million or USD 43.26 per BOE)
  • EBITDA of USD 8.4 million (Q4 2018: USD 8.5 million)
  • Net result of USD 2.7 million (Q4 2018: USD 18.3 million, including USD 12.1 million of one-time other gains)
  • Basic Earnings per share of USD 0.03 (Q4 2018: USD 0.19)
  • Diluted Earnings per share of USD 0.02 (Q4 2018: USD 0.17)

      
Full Year Ended 31 December 2019

  • The Company grew its 2P reserves to 41.8 MMBOE, a 25% increase as compared to year end 2018
  • Drilled and completed the Attic well in the Tie Field and drilled a new delineation well (maha-1) in the Tartaruga block currently undergoing well testing.
  • Daily oil & gas production for the full year 2019 3,044 BOEPD (2018: 1,804 BOEPD)
  • Revenue of USD 55.6 million (2018: USD 38.1 million)
  • Operating netback of USD 41.5 million or USD 38.96 per BOE (2018: 26.9 USD million or 41.57 USD per BOE)
  • EBITDA of USD 35.9 million (2018: USD 22.4 million)
  • Net result for the period of USD 19.7 million (2018: USD 25.6 million, including USD 12.1 million of one-time other gains)
  • Basic Earnings per share of USD 0.20 (2018: USD 0.26)
  • Diluted Earnings per share of USD 0.18 (2018: USD 0.25)
  • Cash and cash equivalents balance of USD 22.4 million (2018: 20.3 million).

      
Financial Summary

(TUSD, unless otherwise noted) Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Full Year 2019 Full Year 2018
Net Daily Production (BOEPD) 3,165 3,593 2,739 2,669 2,454 3,044 1,804
Revenue 13,672 16,068 14,098 11,751 12,595 55,589 38,132
Operating netback 9,825 12,017 10,668 9,029 9,436 41,539 26,917
EBITDA 8,354 10,663 9,188 7,663 8,486 35,868 22,404
Net result for the period 2,679 6,570 6,157 4,248 18,2671 19,654 25,645
Earnings per share – Basic (USD) 0.03 0.07 0.06 0.04 0.19 0.20 0.26
Earnings per share – Diluted (USD) 0.02 0.06 0.06 0.04 0.17 0.18 0.25
Cash and cash equivalents 22,450 20,421 20,504 19,768 20,255 22,450 20,255

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

The fourth quarter and the end of 2019 marked the beginning of a new era for the Company. Maha is now firmly established as a successful oil producing company with two excellent oil fields in Brazil.  First, the Tie field is rapidly turning into a cash machine with two excellent and predictable oil-producing sandstone reservoirs. Second, the Tartaruga field continues to deliver more oil from the Penedo sandstone. An example is the recently tested 107D horizontal well which flowed 990 BOEPD (939 BOPD & 303 MSCFPD) from the Penedo-1 zone on a restricted jet pump. 

The Company now have a solid foundation to build on. To that extent, Maha staff are slowly turning their attention to further growth opportunities, and in a sector that has suffered greatly since the 2014 oil price collapse, opportunities are abundant. Furthermore, 2019 saw a sharp increase in North American oil company bankruptcies (42) which was the highest since the 2015/16 downturn (114). According to Haynes and Boones Oil Patch Bankruptcy Monitor, 208 North American oil and gas companies have gone bankrupt since the 2014 oil crash. Furthermore, the International Energy Agency (IEA) identifies North America and Brazil as the top two oil and gas growth areas in the world (IEA, “Oil 2019”). It is therefore clear that Maha is not only optimally positioned geographically, but with a very strong balance sheet and ready access to capital, the Company is positioned for growth.

Staying true to color, the Company’s tried and tested strategy of identifying underperforming hydrocarbon assets and then adding state of the art technology to increase value will be continued.

Year on year 2P Reserves up by 25% – now at 39.750 million barrels of oil
In September 2019, the Company announced a significant oil reserve increase in the Tie Field as a result of the recently drilled ‘Attic’ Well. Also, important, and something that perhaps has gone unnoticed, is that the recent high-pressure sand stimulation work performed on the 7TTG well at Tartaruga increased the Proven reserves there by some 30%. The Company’s Proven reserves increased by 18%, year on year. And finally, the Company’s (proven) reserve replacement ratio is 147% for 2019. These numbers are excellent considering they all stem from technology implementation work done on existing and producing oil fields. 

Last hurdle cleared on offtake capacity at Tie field.
After nearly a year of expansion commissioning work and licensing, our biggest customer for the Tie field oil received their final clearance to start refining more oil. Together with the recently added Petrobras operated Comboata receiving station, the Company now have offtake agreements in place to accommodate 4,850 BOPD from the Tie field. This is a significant increase from July 2017 when the Tie Field was purchased and offtake was limited to 1,100 BOPD.

Tartaruga 107D Test Results
The long awaited well test on the Tartaruga 107D horizontal was finally concluded and was better than expected.  Considering that the 107D well was only intermittently ‘coughing’ oil and gas when Maha assumed the field in 2017, it was very encouraging that the well started to flow freely again. This is the whole purpose of horizontal drilling, particularly in ‘tight’ formations like the Penedo. Horizontal drilling adds valuable producible surface area in the well, and it provides for access to previously untapped parts of the reservoir. It was primarily the access to new parts of the reservoir that proved so fortuitous. In tight reservoirs, most of the inflow pressure drop occurs very close to the wellbore, so by drilling a short distance away from the original wellbore it allows for higher reservoir pressure. It is this high reservoir pressure that allows the oil to flow freely to the surface. 

Because the 107D horizontal initially free flowed a mixture of oil, gas and water, it took some time to clean the well up. Over time, the water and oil emulsion reduced enough so that the oil could be treated in the Tartaruga facilities.  Once the well had cleaned up enough, the well could then be placed on pump in order to evaluate the full productivity of the well. And as reported, productivity was more than what the Tartaruga facilities could currently handle. Simply put, the oil could not be trucked out fast enough. 

 

Work is underway to increase the handling capacity of the Tartaruga facilities so that the oil from the 107D, 7TTG and predictably Maha-1 (to be tested) wells can be produced without restrictions. It is very encouraging that the Penedo sandstone contains so many zones with so much potential and at the moment the field is only producing from the Penedo-1 zone.   No doubt, the added production from Tartaruga is welcomed, but currently, and although it is still early in the new year, the Company is producing in accordance with its’ production plan for 2020.

I continue to be grateful to all Maha employees for their hard work and dedication that has made all this possible.

“Jonas Lindvall” Managing Director

Q4 Webcast

There will be a live webcast today, 28 February at 16:00 CET (Stockholm time) to review and discuss the Fourth Quarter results and provide an operational update. The webcast will be broadcast live on Nyhetsbyrån Direkts Youtube Channel and hosted by Laikas’ Mr. Mats Jonsson and will feature Maha’s CEO Jonas Lindvall and CFO Andres Modarelli. For further details please consult the Company’s website: www.mahaenergy.ca

Adviser

Certified Advisor: FNCA Sweden AB, info@fnca.se, Telephone: +46-8-528 00 399.

For more information, please contact:          


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

or

Andres Modarelli (CFO)
Tel: +1-403-454-7560
Email: andres@mahaenergy.ca

or

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11          
Email: victoria@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 28 February 2020, at 6:00 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 Growth Market 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 2018 Net result includes USD 11.3 million of recognized deferred tax recovery and USD 0.8 million of other gains.

 

 

Maha Energy AB Announces Filing of Fourth Quarter Report & Live Webcast

Maha Energy AB (publ)
Biblioteksgatan 1
SE-111 46 Stockholm
www.mahaenergy.ca 

                                                           
Press release
Stockholm
28 February 2019          

                                                                                                  

Maha Energy AB Announces Filing of Fourth Quarter Report & 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 2018

  • Daily oil & gas production for the fourth quarter averaged 2,454 BOEPD (Q4 2017: 1,597 BOEPD). The Tartaruga Field was shut-in during the fourth quarter as a result of ongoing drilling operations at 107D.
  • Revenue of USD 12.6 million (Q4 2017: USD 6.9 million)
  • EBITDA of USD 8.5 million (Q4 2017: USD 2.9 million)
  • Net result for the period of USD 18.3 million, which includes USD 11.3 million of recognized deferred tax recovery and USD 0.8 million of other gains during the fourth quarter (Q4 2017: USD 2.5 million)
  • Basic earnings per share of USD 0.19 (Q4 2017: USD 0.03)
  • Diluted earnings per share of USD 0.17 (Q4 2017: USD 0.03)
  • Operating netback of USD 9.4 million or USD 43.26 per barrel (Q4 2017: USD 4.6 million or USD 31.48 per barrel)
  • Cash and cash equivalents balance of USD 20.3 million

Twelve Months Ended 31 December 2018

  • Daily oil & gas production for the Twelve months 2018 averaged 1,804 BOEPD (2017: 917 BOEPD).
  • Revenue of USD 38.1 million (2017: USD 14.6 million)
  • EBITDA of USD 22.4 million (2017: USD 3.2 million)
  • Net result for the period of 25.6 USD million which includes USD 11.3 million of recognized deferred tax recovery and USD 0.8 million of other gains during the fourth quarter (2017: USD -2.8 million)
  • Basic earnings (loss) per share of USD 0.26 (2017: USD -0.03)
  • Diluted earnings (loss) per share of USD 0.25 (2017: USD -0.03)
  • Operating netback of USD 26.9 million or USD 41.57 per barrel (2017: USD 8.7 million or USD 26.73 per barrel)

      
      

 

FINANCIAL SUMMARY

(TUSD, unless otherwise noted) Q4 2018 Q3 2018 Q2 2018 Q1
 2018
Q4
20171
Twelve Months 2018 Twelve Months 2017
Net Daily Production (BOEPD) 2,454 1,565 1,429 1,762 1,597 1,804 917  
Revenue 12,595 9,049 7,859 8,629 6,939 38,132 14,604  
EBITDA 8,486 5,392 3,960 4,566 2,930 22,404 3,213  
Net result for the period 18,267 3,213 1,859 2,306 2,482 25,645 (2,849 )
Earnings (loss) per share (USD) – Basic 0.19 0.03 0.02 0.02 0.03 0.26 (0.03 )
Earnings (loss) per share (USD) – Diluted 0.17 0.03 0.02 0.02 0.03 0.25 (0.03 )
Cash and cash equivalents 20,255 22,292 20,914 22,779 18,729 20,255 18,729  

Letter to Shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB (“Maha” or the “Company”),

I am proud to confirm that in Q4, Maha continues to build on its quarter to quarter very strong financial results. Q4 highlights include; exceptional progress in completing our 2018 Capital Program, and excellent net revenues notwithstanding a mild ‘roller coaster’ ride in oil prices. 

Oil Price
Oil price peaked at USD 86/bbl (Brent) in early October, only to drop by 40% before the year end.  This was followed by a New Year rebound and a currently stabilized price of about USD 62/bbl.  Because of efficient operations and the quality of its reserves – at USD 60/bbl, Maha receives a strong USD 41.57/bbl Yearly average netback. Maha continues to be bullish on an oil price above USD 60/bbl (Brent) for the foreseeable future which, of course, compares favorably to the USD 50/bbl price in May, 2017, when Maha’s 300M SEK Bond was placed.

Tie Field Processing
I am grateful to our Production Operations team that has successfully increased the Tie Field processing capacity to 5000 BOPD by the 31st December, 2018 target date under budget- though some ongoing work remains such as installing a permanent 4-bay loading facility and two remaining oil storage tanks. This work will be completed shortly.  Therefore, opposite to before, the Tie facility can now process more oil and gas than the Tie Field wells can currently produce and deliver. 

Attic Well (Tie Field), GTE-3
Recompletion and Offtake
Expected oil production from drilling the now spudded Attic Well together with production from the two currently Tie producing wells GTE-3 and GTE-4 should fill this excess processing capacity. As the Attic Well is being drilled “up dip” of the ‘free flowing’ GTE-4 well, Maha has good reason to expect excellent results. Once the Attic Well is on production, further operations at GTE-3 will finish the work started last June by recompleting the comingled well to a dual producer for additional production. At that point – if all goes well – Tie Field will be able to deliver more oil than it can currently sell.

To that end, Maha’s commercial team in Brazil and Canada has been busy securing additional offtake arrangements (over and above the current 4100 BOPD) and is confident there will be a ‘home’ for up to 5000 BOPD of Tie Field production in the very near future.

7TTG Workover (Tartaruga)
The 7TTG Workover was completed quickly after the drilling rig was moved from the 107 D location and the 3-1/2” stuck tubing was fished out of the hole.  A new and dedicated jet pump has now been installed that is currently cleaning stimulation fluids from the formation.

Prior to the Workover, 7TTG produced about 190 BOPD from the P6 zone using a surface jet pump that was shared with its sister well, 107D.  Two new zones (P4 and the newly stimulated P1) have now been opened for production in addition to the existing P6 zone.   The results from this operation are eagerly awaited.  Once the above clean-up is complete, the 7TTG will be returned to production.

107D Well Testing (Tartaruga)
For those of you that have followed our news over the last 6 months, you know the 107D Well was an exercise in perseverance, endurance and self-belief for our drilling team.  Despite multiple stuck pipe incidents caused by an unstable formation above the reservoir, a 500 m. horizontal hole was drilled through the productive P1 zone proving; a). the continued lateral extent of the P1 formation and b). the successful applicability of horizontal drilling at Tartaruga.  We are currently mobilizing special slim-hole perforating equipment to perforate the 3-1/2” liner before we can production test this well.

Tartaruga Field Processing and Operations
At the Tartaruga Field, the correct sizing of processing equipment is dependent on liquid and gas throughput. Maha knows it will initially be constrained by the ability to process gas produced in association with oil at the field.   To that end, Maha is working with a Brazilian contractor that will convert the associated gas to electricity. Required environmental licenses to proceed with the installation of gas to wire equipment were obtained during the quarter.  As soon as Maha ascertains the expected production levels for the 107D and 7TTG Wells (above) it will design and upgrade the Tartaruga plant to handle the expected increases in production from the current production capability of +/- 500 bbl/d.

LAK Field Update
At the LAK Field, weather and staffing related issues have prevented Maha from bringing the newly drilled horizontals on production.  The crew at LAK are currently working to commence production and injection before the end of the first quarter of 2019 with a goal of “proving up” the technology can create cashflow positive operations at LAK which could then, in turn, lead to a full field development. 

Reserves
Industry Standard Reserve definitions and procedures that Chapman Petroleum Engineering Ltd. apply required a periodic economic and technical evaluation of the LAK technology implementation. As reported, this resulted in LAK’s probable reserves being downgraded by 4.7 million barrels this year. 

The Company’s decision to accelerate the development plan at Tartaruga Field resulted in 3.1 million barrels of reserves being migrated from 3P Possible Reserves to 2P Probable reserves for an overall Companywide reduction in 2P reserves of about 5%.  As the new drilling results from the 2018 Capital program were not available this year other expected increases in proven reserves were not recorded in 2018 but should appear in 2019.  Total production volumes for 2018 were 647,607 BOE’s- about 5% of Maha’s proven reserves.

I continue to be grateful for all the support and encouraging e-mails we receive from our extended family of “Maha Investors”.  2019 is shaping up to be a great year for Maha.

“Jonas Lindvall”
Managing Director

 

Q4 Webcast

There will be a live webcast today, 28 February at 17:00 CET (Stockholm time) to review and discuss Maha Energy’s Fourth Quarter results and to provide an operational update. The webcast will be broadcast live on Nyhetsbyrån Direkts Youtube Channel and will be hosted by Laikas Mr. Mats Jonsson and will feature Maha Energy’s CEO Jonas Lindvall and Maha Energy’s CFO Andres Modarelli. For further details please consult the Company’s website: www.mahaenergy.ca

Adviser

Certified Advisor: FNCA Sweden AB, info@fnca.se, Telephone: +46-8-528 00 399.

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 February 28, 2019, at 3:00 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

 

 

Attachments

Maha Energy AB: Announces Filing of Fourth Quarter and Year end 2017 Report

Maha Energy AB (publ)
Biblioteksgatan 1
SE-111 46 Stockholm
www.mahaenergy.ca

                                                           
Maha Energy AB (publ)
Biblioteksgatan 1
SE-111 46 Stockholm
www.mahaenergy.ca

Press release
Stockholm
27 February 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 Fourth Quarter and Year end 2017 Report

Maha Energy AB (publ) ("Maha" or the "Company") has today released its fourth quarter and 2017 year-end report.  The report is attached to this press release and available on the Company's website at www.mahaenergy.ca.

Fourth Quarter 2017
· Daily oil & gas net production for the fourth quarter averaged 1,597 BOEPD (Q4 2016: 44 BOEPD)
· Revenue of USD 6.9 million (Q4 2016: USD 0.047 million)
· EBITDA of USD 3 million (Q4 2016: USD -1.1 million)
· Result for the period of USD 1.1 million (Q4 2016: USD -0.087 million)
· Earnings per share of USD 0.01 (Q4 2016: USD 0.00)
· Operating netback of USD 31.77 per barrel (Q4 2016: N/A)
· The Company initiated post-acquisition consolidation of the Brazilian operations by closing the Aracaju office and reducing its staff 
· Subsequent to year end, the Company received proceeds of USD 1.7 million (SEK 13.3 million) for the exercise of 2,074,717 Maha-A TO 1 Warrants at a strike price of SEK 6.40 prior to expiry on January 15, 2018 (representing approximately one third of all of the IPO related Warrants outstanding)

12 Months 2017
· Total Production for the year: 334,579 BOEs compared to 16,838 BOEs for the same period 2016 
· Revenue of USD 14.6 million compared to USD 0.3 million from Canadian discontinued operations for the same period 2016
· Net Result after tax of USD -4.3 million compared to USD -1.9 million for the same period 2016
· Net Result of USD -0.05/share for the period compared to USD -0.03/share for the same period 2016
· The Company does not anticipate any dividend distributions during 2018

Webcast
There will be a live webcast will on February 28 at 1600 CET (Stockholm time) to review and discuss the 4th Quarter Financial Results and to provide an operational update.  The webcast will be broadcast live on Nyhetsbyrån Direkts Youtube Channel and will be hosted by Laikas Mr. Mats Jonsson and will feature Maha Energy's CEO Jonas Lindvall and Maha Energy's CFO Andres Modarelli.  For further details please consult the Company's website: www.mahaenergy.ca

Letter to Shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

We closed 2017 on a very positive note with Maha reaching a number of key milestones in an improved industry business environment. First- this is the first quarter in the history of the Company that a positive net result is reported; second- Maha's reserves continue to increase; and, third- Maha has enjoyed an increasing oil price trend that continued throughout the last quarter.

Whilst 2017 was a year of growth by acquisition; 2018 will be a year of growth through the drill bit.  Maha has a very ambitious capital budget for 2018 that should result in solid and steady growth for Maha. The key highlights for the Q4 are as follows:

· EBITDA for Q4 was TUSD 2,965  
· Net Result (after tax) for Q4 was TUSD 1,059
· Proven Reserve are up 11% at 9.5 million barrels
· Proven plus Probable Reserves are up 26% at 34.3 million barrels
· Maha produced and sold 133,619 barrels of oil during the quarter.
· Maha produced and sold 79.828 MMSCF of gas during the quarter.
· Average Daily production for the quarter was 1,597 BOEs/day
· Company Netback USD 31.77 /BOE

Reserves
With the acquisitions of the Tie Field and the Tartaruga Field, the Company is rapidly moving into a more robust stage of growth.  Along with the improving quarterly results, the Company's reserves growth reflects the Company's now solid asset foundation as shown in the graph below.

(Please see Graph in PDF attached)

Tartaruga Field: 
Petrophysical and geophysical work undertaken at the end of 2017 along with material balance analysis has provided further evidence of larger volume accumulations at Tartaruga.  The lack of water production and a steady gas oil ratio after the jet pump installation indicates larger reserves volumes than initially mapped. Remapping and an in-depth investigation of the petrophysical characteristics of the 20+ sandstone layers in the Penedo sandstone now provides for a more realistic volume model for the Pendeo sandstone.  Since only 2 of the 27 mapped sandstone layers in the  
Penedo have been placed on production and only 2 additional sandstone layers have been tested, this analysis confirms Tartaruga as a future robust production asset.

Tie Field:  
Remapping of the Tie field confirmed the Proven and Probable (2P) volumes and the revised geophysics changed the shape of the subsurface structures somewhat.  The Tie Field produced 0.48 million barrels in 2017 which resulted in slightly reduced reported Proven Reserves.  The Proven and Probable (2P) Reserves remain very similar to those of reported as at December 31st, 2016.

LAK Ranch:  
The Proven Reserves remain small (34,000 bbls), however, the very decent values for Probable and Possible reserves continue to validate this asset's potential.  Remember, the oil in place is only between 200 m – 600 m below the earth's surface.

A natural progression of the Company's assets is that reserves will continue to migrate from the Possible category into the Probable, and from the Probable to the Proven category.

The Boipeba
During the recent remapping of the Tie Field structures, a deeper structure very similar to the currently producing Sergei and Agua Grande formations was mapped.  This structurally closed sandstone formation, the "Boipeba", is a regionally producing sandstone.  The Boipeba has not been drilled on the Tie Field, and hence constitutes an excellent Near Field Exploration target.

In an effort to evenly distribute the production load over the two producing reservoirs on the Tie field, and to increase production, a new production well will be drilled on the Tie field during 2018.  The position of this production well will be placed so that the Boipeba formation can be penetrated and tested in an optimal position.  This type of drilling for Near Field Exploration targets is ideal; should the Boipeba prove to not contain oil, it will still be completed at the shallower producing intervals. Really a free shot at a significant exploration structure.  The Boipeba well will be drilled on the crest of the structure and will intersect the Agua Grande, Sergei and the Boipeba at an optimal position.

Both the Agua Grande and the Sergei formations are expected to flow to surface without the requirements for artificial lift.

As we continue into 2018, the pace of growth at Maha is expected to increase.  The capital plan (as previously announced on February 22, 2018) and work program to increase production is now well on its way and we look forward to a very busy and productive year.

We thank you for your continued support.

Jonas Lindvall
Managing Director

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 February 27th, 2018, at 5:30 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.

2017-Q4 Report and Financials
Maha Energy AB Q4 Report Press Release


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: announces its fourth quarter and year end report ending December 31, 2016

Maha Energy AB (publ)
Biblioteksgatan 1
SE-111 46 Stockholm
www.mahaenergy.ca

Press release

Stockholm

1 March 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. See also section IMPORTANT INFORMATION below.

Maha Energy AB announces its fourth quarter and year end report ending December 31, 2016.

Maha Energy AB (the "Company" or "Maha") today announces the release of its year end report and fourth quarter report ending December 31, 2016.  The report is available hereto and on the Company's website at www.mahaenergy.ca.

Fourth Quarter 2016

· Total Production of 2,305  bbls for the period compared to 3,107 bbls for the same period 2015

· Revenue of USD 47,078 for the period compared to USD 66,669 for the same period 2015

· Net Result of USD (86,269) for the period compared to USD (2,016,897) for the same period 2015

· Net Result of (0.00)/share for the period compared to (0.05)/share for the same period 2015

Twelve Months 2016

· Total Production for the year: 11,113 bbls compared to 20,587 bbls for the same period 2015

· Revenue of USD 227,381 compared to USD 634,934 for the same period 2015

· Net Result after tax of USD (1,874,702) compared to USD (3,904,280) for the same period 2015

· Net Result of (0.03)/share for the period compared to (0.09)/share for the same period 2015

· The Company does not anticipate any dividend distributions during 2017

Subsequent Events

· Successful workover Completed on SES-107 Well in Brazil  Well tested 253 BOPD and 189 MCF of gas per day on its' own

· Agreement signed and USD 3.5 m Deposit paid to acquire Grand Tierra's Brazilian Assets and Operations

Dear Friends and Fellow Shareholders of Maha Energy AB,

Upon the Agencia Nacional Petroelo (ANP) providing its clearance, Maha completed the acquisition of UPP, (the operator) and PVEB (a joint venture partner) to acquire legal and beneficial ownership of a 75% working interest in the Tartaruga field. Maha has now transitioned the take-over of the Field level operations and completed the long-anticipated workover of the second production well (SES 107D) at Tartaruga. The results of the workover were well in line with our expectations, with total production from the field doubling.   The use of a simple hydraulic jet pump to effectively double production is an excellent example of Maha's core philosophy – adding value to underperforming assets through the implementation of modern technology.

There were serious technical challenges to overcome; the most challenging of which was excessive associated gas due to the reduced reservoir pressure.  Not unlike opening a carbonated beverage, when the pressure at the well was reduced, gas came out of the solution as small bubbles. Pumping fluid mixed with gas greatly reduces pump efficiency.  This is especially so where gas is plentiful 3,000 m below surface.   By sizing and choosing the right pumping system and doing a proper clean out the wellbore the problem was solved.

Our share price continues to do well.  During the fourth quarter our shareholding base expanded to over 5,000 shareholders. There is even a dedicated Facebook group of about 4,000 members!  Liquidity remains high and interest in Scandinavia continues to grow.   Our second largest shareholding base is in Denmark.

At LAK Ranch, Maha's 'hot water' flood continues.  During the last quarter, we saw a stabilization of production from our limited injection area and the re-pressurization of the reservoir. We have begun planning a Jet Vac procedure for 4 production wells. As these wells continue to produce below their theoretical capability, we strongly suspect serious completion and/or formation damage.  The Jet Vac procedure will achieve two objectives; (a) the clean out of flour-like coagulated oil sand that is blocking the small holes in the production tubing, and (b) reduce the bottom hole pressure so as to create Inflow Performance Curves. This will allow our technical team to predict well productivity.

Finally, we are excited about the previously announced agreement to purchase 100% of Gran Tierra Energy's (GTE) Brazilian assets.  We spent the better part of the 4th quarter negotiating the Agreement with GTE and it was finally signed in February this year. Gran Tierra has been keen to exit Brazil so they could focus on their Colombia and Mexico operations.  As Brazil accounted for less than 1/30th of GTE's production, it made more sense for them to focus on Colombia.

There are clear synergies between the GTE assets and our Tartaruga field that will result in added significant value.

It is exciting times at Maha!

Sincerely,

"Jonas Lindvall"

Managing Director and CEO

For more information, please contact:

              
Jonas Lindvall (CEO)
Tel: +1 403 454 7563        
Email: jonas@mahaenergy.ca

or

Ron Panchuk

Tel: +1 403 454 7564        
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 1 March 2017, at 8:01 a.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 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 two oil-fields, Tartaruga in Brazil 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.

PRESS RELEASE February 2017 Q4 and year end report
Maha Q4 and year end report December 31 2016


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