| Maha Energy AB (publ) |
| Strandvagen 5A SE-114 51 Stockholm |
| www.mahaenergy.ca |
Press release
Stockholm
22 May 2019
Maha Energy AB Announces Filing of First Quarter Report & Live Webcast
Maha Energy AB (publ) (“Maha” or the “Company”) is pleased to announce its first quarter results. The report is attached to this press release and available on the Company’s website at www.mahaenergy.ca
First Quarter 2019
- Daily oil & gas production for Q1 2019 averaged 2,669 BOEPD (Q1 2018: 1,762 BOEPD).
- Revenue of USD 11.8 million (Q1 2018: USD 8.6 million)
- EBITDA of USD 7.7 million (Q1 2018: USD 4.6 million)
- Net result of USD 4.2 million (Q1 2018: USD 2.3 million)
- Basic earnings per share of USD 0.04 (Q1 2018: USD 0.02)
- Diluted earnings per share of USD 0.04 (Q1 2018: USD 0.02)
- Operating netback of USD 9.0 million or USD 40.22/bbl (Q1 2018: USD 5.9 million or USD 37.02/bbl)
- Cash and cash equivalents balance of USD 19.8 million
FINANCIAL SUMMARY
| (TUSD, unless otherwise noted) | Q1 2019 | Q4 20181 | Q3 2018 | Q2 2018 | Q1 2018 | FY 2018 |
| Net Daily Production (BOEPD) | 2,669 | 2,454 | 1,565 | 1,429 | 1,762 | 1,804 |
| Revenue | 11,751 | 12,595 | 9,049 | 7,859 | 8,629 | 38,132 |
| EBITDA | 7,663 | 8,486 | 5,392 | 3,960 | 4,566 | 22,404 |
| Net result for the period | 4,248 | 18,267 | 3,213 | 1,859 | 2,306 | 25,645 |
| Earnings per share – Basic (USD) | 0.04 | 0.19 | 0.03 | 0.02 | 0.02 | 0.26 |
| Earnings per share – Diluted (USD) | 0.04 | 0.17 | 0.03 | 0.02 | 0.02 | 0.25 |
| Cash and cash equivalents | 19,768 | 20,255 | 22,292 | 20,914 | 22,779 | 20,255 |
1 Q4 2018 Net result includes USD 11.3 million of recognized deferred tax recovery and USD 0.8 million of other gains
Letter to Shareholders
Dear Friends and Fellow Shareholders of Maha Energy AB (“Maha” or the “Company”),
I am happy to report on another quarter of positive financial and operational results. Revenues and net financial and operational results remain strong and are expected to grow as more production is brought online in the current positive pricing environment.
107D (Tartaruga Field)
While the year started with operational difficulties on the 107D well (Tartaruga field) requiring completion of the well in a slightly unconventional way -with perseverance 107D is now completed, perforated, hooked up and ready for production. As earlier reported, the 107D well was completed using a 3-1/2” liner instead of the planned 4-1/2” pre-perforated liner requiring specialty equipment to perforate the now ‘smaller’ liner. This equipment was finally assembled in April and the operation was subsequently successfully completed. Positive indications at surface in the form of pressure and hydrocarbon flows were observed immediately. This is very encouraging, considering 107D is a 25-year-old well that has produced over 780,000 barrels of oil to date. The well is now being tested and is free-flowing to surface. Excessive drilling debris (drilling mud and completion water) extended the clean-up period. The production team is carefully testing the well to ensure proper representative test results are obtained before the well is placed on permanent production.
Boipeba and Attic Well (Tie Field)
The much-anticipated Attic well was spudded during the quarter and in April, the well penetrated the Boipeba exploration target. After some early delays due to a lightning strike on the derrick, the Boipeba was finally evaluated and though the Boipeba sandstone was encountered as per prognosis, the reservoir was poorly developed and filled with water. The well was subsequently completed in the Agua Grande and Sergi formations which when comingled tested 1,691 BOEPD through a 2-3/8” tubing and with a 28/64” choke. Production was constrained by surface equipment limitations. Currently, the well is being recompleted to remove the equipment limitations and allow the well to be produced through a dual 2-3/8” completion – effectively doubling the capacity of the completion. The Attic well did not disappoint.
We are now in the very fortunate position that the Tie Field wells can deliver more oil than we can currently sell. We are making great progress with customers to increase our offtake capacity by another 750 BOPD, giving us the capability to sell up to 4,850 BOPD from this field. I am hopeful this will be in place sometime during the summer.
7TTG Workover (Tartaruga)
The 7TTG Workover was completed in February with production numbers well above expectations. As the well continued to clean up from the hydraulic stimulation, production increased steadily. The well was producing close to 900 BOPD from the P1 zone alone (gross volume) –and that is before we optimize the pump. We are very happy with this result. Since the P6 zone is still not opened up, we can expect even higher production rates from the 7TTG well. A very favourable result for a well that was only producing 190 BOPD prior to being shut it in last year.
Near Term Production
With all this new production coming on stream, our teams are having to quickly adjust Tie and Tartaruga plant parameters and to find new markets for the oil. A welcome challenge! There will be certain short-term interruptions in May and June in our production as the teams work through tie-in work and fluid treatment issues.
I continue to be grateful for all the support and encouraging e‐mails we receive from our extended family of “Maha Investors”.
“Jonas Lindvall”
Managing Director
Q1 Webcast
There will be a live webcast today, 22 May at 16:00 CET (Stockholm time) to review and discuss the First Quarter results and provide an operational update. The webcast will be broadcast live on Nyhetsbyrån Direkts Youtube Channel and hosted by Laikas’ Mr. Mats Jonsson and will feature Maha’s CEO Jonas Lindvall and CFO Andres Modarelli. For further details please consult the Company’s website: www.mahaenergy.ca
Adviser
Certified Advisor: FNCA Sweden AB, info@fnca.se, Telephone: +46-8-528 00 399.
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 22 May 2019, at 1:00 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 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.
1 Q4 2018 Net result includes USD 11.3 million of recognized deferred tax recovery and USD 0.8 million of other gains
Attachments
