Maha Energy

Earnings Release • Sep 15, 2021

Maha Energy announce delay in Tie-4 completion due to drillstring twistoff – may impact 2021 annual average production guidance

Jonas Lindvall, CEO of Maha Energy AB comments: "As communicated in early July, the production volume during the second quarter was lower than planned due to production interruptions at the Tie field. At that time, we were confident in achieving the annual average production guidance due to expected production additions from Tie-4 and Illinois Basin (IB). With current delays in the Tie-4 completion, we now expect the annual average production rate to be at, or slightly below, the lower end of the 2021 production guidance."

• The Tie-4 horizontal well suffered a drillstring twistoff during the drilling of the 8- 1/2" build up section resulting in a sidetrack being initiated. The new completion date of Tie-4 is anticipated to be the end of October. Current depth is 1,568 m and the sidetrack has been initiated.
• The average annual production rate to date is 3,550 BOEPD1, and the daily corporate production on 14 September was 4,150 BOEPD.
• The 2021 exit rate is estimated between 5,000 BOEPD and 5,500 BOEPD.

Jonas Lindvall continues: "Within 25 meters of the reservoir, we suffered a twistoff in the drillpipe on Tie-4 and the resulting sidetrack frustrates our ambition to meet the 2021 production target. Indications prior to the twistoff was that the reservoir was on target and with the typically excellent reservoir qualities of the upper reservoir I am excited to see what it will produce. With over 500 m of planned reservoir exposure we should expect high production rates."

1 Barrels of oil equivalent ("BOE") conversion ratio of 6,000 scf: 1 bbl is used.

Miscellaneous

This information is such information that Maha Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 11:00 p.m. CET on 15 September, 2021.

For more information, please contact: Jonas Lindvall (CEO) Tel: +46 8 611 05 11 jonas@mahaenergy.ca

Victoria Berg (Investor Relations) Tel: +46 8 611 05 11 victoria@mahaenergy.ca

About Maha

Maha Energy AB (publ) is a listed, international upstream oil and gas company whose business activities include exploration, development and production of crude oil and natural gas. The strategy is to target and develop underperforming hydrocarbon assets on global basis. Maha operates four oil fields: Tartaruga and Tie in Brazil, Powder River (LAK Ranch) and Illinois Basin in the United States. The shares are listed on Nasdaq Stockholm (MAHA-A). The head office is in Stockholm, Sweden with a technical office in Calgary, Canada, as well as operations offices in Grayville, Illinois, USA and Rio De Janeiro, Brazil. For more information, please visit our website www.mahaenergy.ca