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

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

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

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

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

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

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

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

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

Letter to shareholders

Dear Friends and Fellow Shareholders,

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

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

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

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

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

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

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

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

Thank you for your support and trust in Maha Energy.

Yours sincerely,

Kjetil Braaten Solbraekke (CEO)

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

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

Link to webcast: