Maha Energy AB: Announces Filing of Third Quarter Report

Maha Energy AB (publ)
Biblioteksgatan 1
SE-111 46 Stockholm

Press release
29 November 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 ABAnnounces Filing of Third Quarter Report

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

Third Quarter 2018

  • Daily oil & gas production for the third quarter averaged 1,565 BOEPD (Q3 2017: 1,671 BOEPD). The Tartaruga field continues to be shut-in during the third quarter as a result of ongoing drilling operations at 107D.
  • Revenue of USD 9.0 million (Q3 2017: USD 6.2 million)
  • EBITDA of USD 5.4 million (Q3 2017: USD 2.3 million)
  • Net result for the period of USD 3.2 million (Q3 2017: USD -0.4 million)
  • Earnings per share of USD 0.03 (Q3 2017: USD 0.00)
  • Operating netback of USD 6.6 million or USD 46.17 per barrel (Q3 2017: USD 3.9 million or USD 25.58 per barrel)
  • Current unrestricted Cash and cash equivalents balance of USD 22.2 million

Nine Months Ended 30 September 2018

  • Daily oil & gas production for the nine months 2018 averaged 1,585 BOEPD (2017: 687 BOEPD).
  • Revenue of USD 25.5 million (2017: USD 7.7 million)
  • EBITDA of USD 13.9 million (2017: USD 0.3 million)
  • Net result for the period of 7.4 USD million (2017: USD -5.3 million)
  • Earnings per share of USD 0.08 (2017: USD -0.06)
  • Operating netback of 17.5 USD million or 40.70 USD per barrel (2017: 4.1 USD million or 22.86 USD per barrel)


(TUSD, unless otherwise noted) Q3 2018 Q2 2018 Q1 2018 Q4 2017[1] Q3 2017 Nine Months 2018 Nine Months 2017 FY 2017
Net Daily Production (BOEPD) 1,565 1,429 1,762 1,597 1,671 1,585 687 917
Revenue 9,049 7,859 8,629 6,939 6,173 25,537 7,665 14,604
EBITDA 5,392 3,960 4,566 2,930 2,259 13,918 283 3,213
Net result for the period 3,213 1,859 2,306 2,482([2]) (402) 7,378 (5,331) (2,849)
Earnings per share (USD) 0.03 0.02 0.02 0.03 (0.00) 0.08 (0.06) (0.03)
Cash and cash equivalents 22,292 20,914 22,779 18,729 18,372 22,292 18,372 18,729

Letter to Shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB,

I am pleased to present our third quarter report that Maha demonstrates a continuing strong financial position notwithstanding the "feverish pace" of our field level capital and production operations.  Maha's transformational "three pronged" (drilling, surface facilities expansion and crude oil and gas offtake arrangements at each field) program to increase production dominated the quarter.  Despite slightly lower than anticipated Q3 production numbers (due to extended shut in at Tartaruga while drilling is completed) the buoyant oil price resulted in a record earning quarter for the Company.

Tartaruga Field

While delays were experienced at the Tartaruga operations (including the 107D sidetrack) we are pleased the capital program is now fully "back on track".  The Drilling Rig finished mobilization on 20 September, and the 107 D well was thereafter re-entered and prepared for a horizontal sidetrack.  As announced on October 17 – the drill-string parted necessitating repairs to the Drilling Rig and fishing of the drill-string.  Happily, drilling is again underway to complete the horizontal sidetrack at Tartaruga.  On completion of the 107D sidetrack, the Drilling Rig will be moved over to the 7TTG well where a new Penedo zone will be perforated and brought on production.  While the delays at Tartaruga reduced the production volumes and pushed back the drilling of the 'Attic Well' at the Tie Field; better than expected production results from Tie Field and the "new rig" for the Attic Well (see below) largely mitigate these effects.

Tie Field

At the end of Q3, the GTE-3 producing well was reconfigured to allow comingled production after technical problems hindered the short string to be selectively produced, as planned.  The comingling of these two zones is temporary and once the Tie Field facilities are expanded to handle 5,000 BOPD; GTE-3 will be worked over to allow both zones to produce individually, which translates to higher production volumes.  At the end of Q3, the Tie Field facilities were producing at maximum capacity.

As recently announced, a second drilling rig to drill the Attic Well has been contracted.   This decision was taken to ensure that the 2019 production goal does not fall behind due to the delays at Tartaruga.  Increased production from the Tie Field, Maha's principal producing asset, largely mitigates the production shut in at Tartaruga at a Corporate level.  The expected production from the 107D Sidetrack and the Attic Well will be the "gravy" to the already tremendously successful program!

Last, the final phase at the Tie Field facilities expansion is being completed including the new separators, water injection skids, tanks and other processing equipment that are, as this is written, being installed and commissioned.

LAK Field

At the end of the Q3 – Maha commenced the planned eight well drilling program at LAK Ranch in Wyoming.  The program was completed approximately 2 weeks ahead of schedule and below budget.  The purpose of this campaign was to finish what was started in 2014/15 but delayed because of the dip in commodity prices.  We now have six horizontal (or near horizontal) production wells supported by nine vertical water injectors (which wells are in the process of being tied in) which completes this Phase of the new hot water injection plan.  We anticipate the eight wells drilled this year will cause LAK to consistently deliver net back positive cashflow.  Based on the near-term results from the now completed 'Phase 3" program, we will decide how we best to proceed with this asset.


We look forward with great anticipation to Q4 2018 especially the completion and testing of the 107D horizontal sidetrack and completion of the Tie Field facility expansion.

I continue to be grateful for all the support we receive from our family of "Maha Investors" and as we quickly move towards the end of 2018 – I am sure we will look back and conclude this was as a truly transformational year for Maha.  Finally, I wish everyone Happy Holidays.

"Jonas Lindvall"
Managing Director

Q3 Webcast

There will be a live webcast tomorrow, 30 November at 1600 CET (Stockholm time) to review and discuss Maha Energy's Third 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:


FNCA Sweden AB is the Company's Certified Adviser.

For more information, please contact:          
Jonas Lindvall (CEO)
Tel: +1 403 454 7560        


Ron Panchuk (CCO)
Tel: +1 403 454 7560        


Andres Modarelli (CFO)
Tel: +1-403-454-7560


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 November 29, 2018, 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

Important Information

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

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

Maha Energy 2018_Q3 Report Press Release
Maha Energy 2018_Q3 Report

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Source: Maha Energy AB via Globenewswire