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

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

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

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

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

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

Maha’s Assets
Maha has an indirect working interest of 15% in the Peroá cluster and 9.375% in the Papa Terra cluster, with 3R Petroleum Offshore S.A. being the operator. Maha is the operator holding 97% working interest in the Illinois Basin.

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

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

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

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

Maha’s Assets
Maha has an indirect working interest of 15% in the Peroá cluster and 9.375% in the Papa Terra cluster, with 3R Petroleum Offshore S.A. being the operator. Maha is the operator holding 97% working interest in the Illinois Basin.

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