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Maha Power AB Proclaims Submitting of Second Quarter 2022

Maha Power AB (publ) (“Maha” or the “Firm”) is happy to announce its second quarter outcomes. The report is hooked up to this press launch and accessible on the Firm’s web site at  www.mahaenergy.ca.

Second Quarter 2022

  • The Tie-5 properly was accomplished free-flowing 766 BOEPD (590 BOPD and 1,054 MSCFPD) and is now producing by means of the Tie area’s everlasting services.
  • The Tie-6 properly was spudded in June and may probably be connected for manufacturing throughout Q3.
  • Day by day oil & gasoline manufacturing for Q2 2022 averaged 3,292 BOEPD (Q2 2021: 3,104 BOEPD)
  • Income of USD 24.0 million (Q2 2021: USD 15.2 million)
  • Working netback of USD 17.4 million or USD 64.72 per BOE (Q2 2021: USD 9.5 million or USD 35.46 per BOE)
  • EBITDA of USD 14.6 million (Q2 2021: USD 9.0 million)
  • Internet results of USD 8.2 million (Q2 2021: USD 2.6 million)
  • Primary and Diluted Earnings per share of USD 0.07 (Q2 2021: USD 0.02)
  • Money and money equivalents steadiness of USD 23.9 million (Q2 2021: 34.1 million)

Six Months Ended 30 June 2022

  • Day by day oil & gasoline manufacturing for H1 2022 averaged 3,933 BOEPD (H1 2021: 3,421 BOEPD)
  • Income of USD 54.8 million (H1 2021: USD 31.0 million)
  • Working netback of USD 39.9 million or USD 60.69 per BOE (H1 2021: USD 20.6 million or USD 34.56 per BOE)
  • EBITDA of USD 36.7 million (H1 2021: USD 19.2 million)
  • Internet consequence for the interval of USD 20.2 million (H1 2021: USD 8.1 million)
  • Primary and Diluted Earnings per share of USD 0.17 (H1 2021: USD 0.08)
  • Money and money equivalents steadiness of USD 23.9 million (31 December 2021: USD 25.5 million)

Monetary Abstract

(TUSD, until in any other case famous) Q2
2022
Q1
 2022
This fall
 2021
Q3
 2021
Q2
 2021
H1
2022
H1
2021
FY
2021
Internet Day by day Manufacturing (BOEPD) 3,292 4,580 3,098 3,610 3,104 3,933 3,421 3,387
Income 24,018 30,831 17,818 19,496 15,178 54,849 30,992 68,306
Working netback 17,408 22,528 11,913 13,568 9,548 39,936 20,579 46,060
EBITDA 14,621 22,069 15,615 12,909 8,988 36,690 19,201 47,725
Internet consequence for the interval 8,219 12,030 7,363 6,083 2,603 20,249 8,141 21,587
Earnings per share – Primary (USD) 0.07 0.10 0.06 0.05 0.02 0.17 0.08 0.19
Earnings per share – Diluted (USD) 0.07 0.10 0.06 0.05 0.02 0.17 0.08 0.19
Money and money equivalents 23,863 29,416 25,535 31,778 34,139 23,863 34,139 25,535

Letter to shareholders

Pricey Associates and Fellow Shareholders of Maha Power AB,

Close to report excessive oil costs helped our backside line this quarter as our quarterly manufacturing volumes have been decrease than deliberate, and in the meanwhile we’re monitoring across the backside finish of our 2022 manufacturing steering of 4,000 BOEPD.  Maha delivered a report first half of the 12 months (H1) on all fronts, together with manufacturing, revenues and web outcomes. H1 common day by day manufacturing landed at 3,933 BOEPD and H1 EBITDA was USD 36.7 million, virtually double in comparison with final 12 months’s report. Our consequence for H1 was twice that of our earlier highest H1 consequence recorded. However although we skilled undesirable and irritating short-term manufacturing setbacks in Brazil throughout the quarter, we’re making actual progress in securing long-term manufacturing stability on the Tie area. Regardless of larger than regular working bills throughout the quarter, our Netback per barrel is at an all time excessive at USD 65 per BOE. In fact, we’re not proud of the short-term discount in manufacturing volumes from the Tie area, however we’re working exhausting on getting all of our producing wells again on manufacturing once more as quickly as attainable. Solely two out of six wells contributed to our oil manufacturing on the Tie area this quarter.

Brazil
At our core asset in Brazil, the Tie area, manufacturing was decrease throughout the second quarter as a consequence of; pure manufacturing decline, changing the Tie-3 properly from an oil producer to a water injector, oil manufacturing from Tie-5 horizontal approaching late, and dropping manufacturing from three key manufacturing wells (Tie-1, GTE-3, and GTE-4). These three wells are scheduled for restore utilizing the contracted Braserv rig throughout the third and fourth quarters to revive manufacturing ranges.

Operationally on the Tie area, the Tie-5 properly was accomplished as a horizontal producer in July and flowed naturally 770 BOEPD on a 24 hour take a look at. The Tie-5 continues to supply steadily with negligible water and can contribute to offset different short-term setbacks on the Tie-field. Additional, surprising optimistic information was encountered on Tie-6, the place the Agua Grande (AG) reservoir was penetrated 12 meters larger than predicted. This is superb information, because the reservoir is larger structurally than anticipated, the seismic mapping of the construction should be redefined.  Moreover, and since a lot of the AG is now above the oil water contact, we’re at the moment evaluating the potential of initially producing the oil within the AG earlier than changing the properly to a water injector, as was initially deliberate.

Sadly, delays within the drilling of the Tie-4 and Tie-5 wells have adversely impacted the schedule for Tie-1, GTE-3 and GTE-4 workovers. The Brasserv workover rig was contracted in June to start the properly intervention work to revive manufacturing on the Tie area. Thus far, work on finishing the Tie-5 oil producer and changing the ALV-2 properly to a gasoline injector has been accomplished.  Subsequent, GTE-3, GTE-4 and Tie-1 will probably be restored to full manufacturing throughout the second half of the 12 months. Importantly, Electrical Submersible Pumps (ESP) will probably be put in in GTE-3 after which later in Tie-2 to additional increase manufacturing at Tie.

Oman
After the contracted GBS-1 drilling rig was withdrawn by the drilling contractor, the Maha staff in Oman acted swiftly to safe the Gulf Drilling Firm Rig-109 and drilling is now anticipated to start in October. The Firm additionally determined to strategically farm down 35% of the Block 70 Exploration and Manufacturing Sharing Settlement to Mafraq Power LLC. Not solely does the farm down handle the Firm’s asset danger publicity, but it surely additionally reduces price and improve confidence within the mission. Mafraq Power brings essential technical experience in addition to a strategic partnership in Oman to help in future progress. It’s in all probability the very best proof but of the robustness of the Mafraq area.

The Mafraq area is a delineated and examined heavy oil area onshore Oman. A earlier operator examined 15,700 barrels of heavy oil from a single properly over a 23 day properly take a look at interval in 1991. Maha’s plan is to begin drilling the primary six appraisal and manufacturing pilot take a look at wells on the sphere beginning in October.

USA
Manufacturing from the Illinois Basin was regular throughout the quarter and the Firm continues to guage the outcomes from the 2021 drilling marketing campaign together with potential progress alternatives within the USA. At LAK Ranch in Wyoming, the Firm commenced a collection of regulatory properly assessments and properly reactivations. A strategic course of was initiated throughout the quarter to guage the very best future choices for the LAK Ranch property. 

It was a ‘blended’ bag of occasions this quarter – some good and a few not so good. As beforehand talked about on the Tie area, we produced from solely two wells, Tie-4 and Tie-2, for a lot of the quarter. This affected manufacturing considerably.  Delays within the drilling of Tie-5 and the tubing leaks in GTE-3, GTE-4 and Tie-1 resulted in decrease manufacturing volumes throughout the quarter. These three wells will probably be returned to manufacturing now that the drilling rig is moved out of the sphere and the workover rig has completed the work on the ALV-2 gasoline injection properly. The truth that the AG was penetrated larger than prognoses within the Tie-6 properly could be very encouraging. 

The long run appears to be like vibrant and busy for the second half of the 12 months. With the workovers on the Tie area, we are going to add essential barrels to our manufacturing and with the surprising outcomes of Tie-6, we could have a complete of seven producing wells there, offering essential manufacturing redundancy. Lastly, in Oman, we are going to begin the drilling of the massive Mafraq construction and start properly take a look at manufacturing at a industrial degree.  It’ll be a really busy second half of the 12 months.

Lastly, I want to thank my fellow Maha colleagues who work so tirelessly for all of us, and to all loyal shareholders who assist us. Thanks!

Yours actually,

Jonas Lindvall
Managing Director

Q2 Webcast at this time at 16:00 CET

There will probably be a dwell webcast at this time, 15 August at 16:00 CET (Sweden time) to current the quarterly outcomes and supply an operational replace. A hyperlink to the webcast is offered on the Firm’s web site: www.mahaenergy.ca. Questions posted on the day of the presentation must be made immediately within the YouTube Feedback/Questions area. The webcast will probably be broadcast dwell on Nyhetsbyrån Direkts Youtube Channel and is hosted by Laikas’ Mr. Kaarlo Airaxin, and can characteristic Maha’s CEO Jonas Lindvall and CFO Andres Modarelli.

This data is such data as Maha Power AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The knowledge was submitted for publication, by means of the company of the contact particular person set out under, at 07:30 CET on 15 August 2022.

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

Andres Modarelli (CFO)
Tel: +46 8 611 05 11       
andres@mahaenergy.ca

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

About Maha
Maha Power AB (publ) is a listed, worldwide upstream oil and gasoline firm whose enterprise actions embrace exploration, growth and manufacturing of crude oil and pure gasoline. The technique is to focus on and develop underperforming hydrocarbon belongings on international foundation. Maha operates 4 oil fields: Tartaruga and Tie in Brazil, Powder River (LAK Ranch) and Illinois Basin in america. The shares are listed on Nasdaq Stockholm (MAHA-A). The pinnacle workplace is in Stockholm, Sweden with a technical workplace in Calgary, Canada, in addition to operations places of work in Grayville, Illinois, USA and Rio De Janeiro, Brazil. For extra data, please go to our web site www.mahaenergy.ca

  • 2022 Q2 Maha Power Report ENG
  • 20220815 Maha Power Press Launch Q2 2022_ENG

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