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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