Maha Energy AB (publ) (“Maha” or the “Company”) provides an update on the Company’s 2018 Capital Plan, announces its 2019 Capital Plan and discusses its April 2017 Five Year Capital Plan and Production Forecast

Maha Energy AB (publ)
Strandvagan 5A
SE-114 51 Stockholm

Press release
March 8, 2019

Maha Energy AB (publ) (“Maha” or the “Company”) provides an update on the Company’s 2018 Capital Plan, announces its 2019 Capital Plan and discusses its April 2017 Five Year Capital Plan and Production Forecast

Maha Energy AB (publ) ("Maha" or the "Company") is pleased to provide an update on the completion of the Company’s 2018 Capital Plan, details of its 2019 Capital Plan and a discussion of the impact of the 2018 and 2019 Capital Plans on the previously announced – April 2017 Five Year Capital Plan and Production Forecast.

2019 Capital Plan Summary – Total Budget USD 20 Million

Tartaruga Delineation Well DH-1 Q2 and Q3 Test up to 27 Penedo sandstones


Tartaruga Facilities Upgrade Q2 and Q3 Increasing processing capacity for new production
Tie New Well
Q4 Maintain Tie field long term production plateau
Tie New Well
Q4 Maintain Tie field long term production plateau
LAK None N/A N/A

Tartaruga Field – Sergipe, Brazil

Tartaruga – 2018 Capital Plan Completion Update

7TTG Well
As previously announced, stimulation clean-up operations of the P1 zone were performed using a dedicated jet pump from February 17th to February 23rd.  The cleanup operation saw a significant portion of the stimulation fluids being produced back.  Before shutting the well in and removing temporary flowback equipment, the P1 zone produced at a rate of 457 BOPD, 88 BWPD and 113 MSCFPD during a 24-hour flowback period.  Note this is a dedicated test of the P1 zone only.  The newly perforated P4 zone and the previously producing P6 zone are both temporarily closed off.  Further production testing on the P1 zone is ongoing and the well is cleaning up nicely; the latest 24-hour production rate for the P1 zone before pump optimization is over 600 BOPD with negligible water.
Production is expected to be re-established very quickly after installation of permanent production equipment.  Thereafter the well will continue to clean up – with oil rates expected to increase and water rates reducing.  Once the operations team has completed pump optimization and, if required, reactivation of the P4 & P6 perforations, 7TTG is anticipated to produce hydrocarbons to the current capacity of the Tartaruga facilities which is between 500 and 800 BOPD depending on the results of the current well tests.
107 D (Tartaruga Field)
The new horizontal sidetrack reached a Total Depth of 3661 m as of 18 December, 2018 and the horizontal sidetrack has now been lined with a 3-1/2” liner that has been installed and sealed.  Certain required non-standard specialty perforating equipment has been identified and will be air freighted to Brazil as soon as possible.
Tartaruga – 2019 Capital Plan

      Delineation Well (MH-1)
      The Company plans to drill a new well from the Tartaruga site during 2019 (“MH-1”).  The objective of the MH -1 well is to further test hereto untested sandstone zones in the Penedo reservoir.  The Penedo reservoir consists of up to 27 sandstone zones (hereinafter referred to as ‘sands’).  All sands have been penetrated and logged in previous wells and all indications are that these sands contain oil, but only four (4) sands have been previously tested in order to confirm oil content.  All four tested sands have tested varying amounts of oil. 
      MH-1 will be drilled to the base of the Penedo sandstone.  Electric logging results will dictate the scope of the Drill Stem Testing Program at the time.  On the conclusion of the tests, the MH-1 well will be placed on production and connected to the Tartaruga Facility.
      It is not anticipated that the Tartaruga Facility will be shut in during the drilling activities of the MH-1 well.  The Company expects 7TTG and 107D (once perforated and hooked up) to produce continuously through 2019, except during shutdowns required for the Facility expansion, if any.

      Facility Upgrade
      The production test results from the 107D Sidetrack and the 7TTG Workover will dictate upgrade requirements for the production handling facilities at Tartaruga field.  Based on present understandings it is anticipated facilities will be initially upgraded during 2019 with a view to handle up to 2,500 BOPD and 500 MSCFPD of associated gas. Environmental licenses have been obtained for the implementation of a Gas-to-Wire project that will handle the excess gas for this upgrade. This facility work is expected to be completed during the second half of 2019. Further associated gas handling is currently being designed for implementation in 2020.
Tie Field – Bahia, Brazil

Tie – 2018 Capital Plan Completion Update

Attic Well
      The 2018 announced Attic Well will be completed during 2019.  Once the Boipeba exploration target has been evaluated, the Attic Well will be dually completed and placed on production.
      As soon as the Attic Well is completed and placed on production, in order to boost production from the GTE-3 well, a Workover Rig will be mobilized to recomplete the GTE-3 well from a single comingled completion to a separate zone dual completion
In 2018, the Company announced that the free-flowing GTE-4 well will be recompleted with a Jet Pump once the Sergi and/or Agua Grande zone ceases free flowing oil.  The water injection program that commenced in October 2017 has worked above expectations such that the GTE-4 well continues to free flow and hence work will only be undertaken to recomplete the GTE-4 well to a pumping well once either zone ceases to flow freely.  The surface pumping equipment on GTE-4 is already installed such that any intervention work on GTE-4 will only entail minor work. 
      Facility Upgrade
      The capital program announced in 2018 for upgrading the Tie Field facility will be completed during the first half of 2019.  At the moment, the Plant is capable of handling up to 5,000 BOPD.  Remaining work to be completed during 2019 includes the construction of two additional storage tanks and a four-bay loading facility.  In the event that the Attic Well is completed before this work has been completed, the current facility is arranged to temporarily handle 5,000 BOPD until such time the four-bay loading work is completed.

Tie – 2019 Capital Plan
      Tie South 1 and Tie South 2 Wells
      The Company plans to drill two new wells at the Tie field (“TS-1” and “TS-2”) in order to maintain the field’s long-term production plateau.  While these wells are currently scheduled to be drilled back-to-back towards the end of 2019 the exact spud date is wholly dependent on normal course regulatory approvals such as a well license.  Permitting has already commenced and is expected to take eight months to complete.  Given this timing there is some likelihood the Company will not complete both wells prior to year-end.  It should be noted maintaining the Tie Field production plateau during 2019 is not dependent on the drilling of these wells.
Facility Upgrade
      There is currently no anticipated requirement for additional facilities at Tie field other than completion of the work as per above. If results from the Attic Well and other planned operations exceed expectations, the Company may re-visit further additions to the 2019 Capital Program for additional facilities at Tie.

LAK Ranch – Wyoming USA

 LAK – 2018 Capital Plan Completion Update
Phase I
During 2018, the Company completed the first Phase of the LAK Ranch Field Development.  The First Phase now consists of five (5) near horizontal producers and nine hot water injectors which are being tied in.  The results are now been evaluated.

LAK – 2019 Capital Plan

Production Optimization
2019 will be a year of production optimization and evaluation. So far, no investment decision has been made for LAK in 2019.  Capital will only be spent if: a) the results show positive netback numbers for the field, b) further capital investments are ranked above other opportunities that the Company might have during 2019, and c) Board of Director review and approval.


The Company expects to complete most if not all of the Capital Plan prior to year-end 2019.  The exact timing of the operations is dependent upon a number of factors including delivery of long lead items, rig availability, permitting and logistics.  Depending on the results of the operations, the Company will need to find new markets and offtake arrangements for production increases.  As a minimum the Company expects to achieve, those production levels reflected in its April 2017 Five Year Capital Plan: an average annual net production of 3,990 BOPD for 2019 and 4,820 BOPD for 2020.

As the exact timing of operations and expected production/offtakes becomes clearer the Company will provide updated information by Press Release.

Funding of 2019 Capital Plan

2019 Capital Plan Budget
The 2019 Capital Plan has a total budget of USD 20 million for the above incremental projects and is expected to be funded fully through operating cash flow. Except if either of TS1 or the TS2 wells are delayed into 2020 (see above), it is anticipated most of these costs will be incurred in 2019.


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

For more information, please contact:        

Jonas Lindvall (CEO)
Tel: +1 403 454 7560        


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


The information was submitted for publication through the agency of the contact persons set out above on March 8, 2019, at 3:00 a.m. (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