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MAHA TO 2 A - Maha Energy AB News Story

SEK4.16 0.0  0.0%

Last Trade - 26/05/21

Sector
Energy
Size
Small Cap
Market Cap £113.1m
Enterprise Value £132.8m
Revenue £37.5m
Position in Universe th / 1889

Maha Energy AB Announces Filing of Third Quarter 2021 Report & Live Webcast

Mon 22nd November, 2021 6:30am
For best results when printing this announcement, please click on link below:
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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  www.mahaenergy.ca.

Third Quarter 2021
* Daily oil & gas production for Q3 2021 averaged 3,610 BOEPD (Q3 2020: 3,580
BOEPD)
* Revenue of USD 19.5 million (Q3 2020: USD 11.2 million)
* Operating netback of USD 13.6 million or USD 41.17 per BOE (Q3 2020: USD 7.0
million or USD 21.12 per BOE)
* EBITDA of USD 12.9 million (Q3 2020: USD 5.5 million)
* Net result of USD 6.1 million (Q3 2020: USD 1.8 million)
* Basic Earnings per share of USD 0.05 (Q3 2020: USD 0.02)
* Diluted Earnings per share of USD 0.05 (Q3 2020: USD 0.02)
* Cash and cash equivalents balance of USD 31.8 million (Q3 2020: 18.0
million)
Nine months Ended 30 September 2021
* Daily oil & gas production for nine months 2021 averaged 3,485 BOEPD (Nine
months 2020: 3,490 BOEPD)
* Revenue of USD 50.5 million (Nine months 2020: USD 30.4 million)
* Operating netback of USD 34.1 million or USD 36.92 per BOE (Nine months
2020: USD 19.3 million or USD 20.67 per BOE)
* EBITDA of USD 32.1 million (Nine months 2020: USD 15.4 million)
* Net result for the period of USD 14.2 million (Nine months 2020: USD 5.4
million)
* Basic Earnings per share of USD 0.13 (Nine months 2020: USD 0.05)
* Diluted Earnings per share of USD 0.13 (Nine months 2020: USD 0.05)
* Cash and cash equivalents balance of USD 31.8 million (2020: USD 6.7
million)
Financial Summary

 ( TUSD, unless otherwise noted)       Q3 2021  Q2 2021  Q1 2021  Q4 2020   Q3 2020  Nine months 2021  Nine months 2020  FY 2020   
 Net Daily Production (BOEPD)          3,610    3,104    3,742    2,738     3,580    3,485             3,490             3,301     
 Revenue                               19,496   15,178   15,814   8,659     11,226   50,488            30,359            39,018    
 Operating netback                     13,568   9,548    11,031   4,247     7,041    34,147            19,276            23,523    
 EBITDA                                12,909   8,988    10,213   2,720     5,514    32,110            15,384            18,104    
 Net result for the period (1)         6,083    2,603    5,538    (15,702)  1,845    14,224            5,443             (10,259)  
 Earnings per share – Basic (USD)      0.05     0.02     0.05     (0.15)    0.02     0.13              0.05              (0.10)    
 Earnings per share – Diluted (USD)    0.05     0.02     0.05     (0.15)    0.02     0.13              0.05              (0.10)    
 Cash and cash equivalents             31,778   34,139   5,698    6,681     18,034   31,778            18,034            6,681     

 

Letter to shareholders

Dear Friends and Fellow Shareholders of Maha Energy AB

By now, I was really hoping that we could have announced some promising
results from our first horizontal well on the Tie field, but alas, that is
unfortunately not the case.  The Tie-4 well continues to test us and we are
currently re-drilling the 8-1/2” production hole, for the third time.  As
an old ‘Driller’ I can tell you how gut wrenching it is when you stick the
drillstring in the hole.  Fishing and sidetracking operations are time
consuming and expensive.  To add insult to injury the delay in completion are
deferring profitable barrels that would have added to our healthy bottom line
this quarter, especially at the current price of oil.

Having said that, we are delivering a record quarter in terms of revenue and
EBITDA.  The net result for the period is not far behind and would have also
broken our previous record had we not incurred extra costs when completing the
successful acid stimulation of Tie 3 (increased rate from ~100 to 240 bopd)
and some slickline work on GTE-4 during the quarter.  Our netbacks are very
healthy at USD 41.17/BOE and our net result is USD 6.083 million for the
quarter.

Our production for the quarter was impacted by the problems on Tie-4, but the
other wells are actually performing better than predicted - so I am bullish on
our future production provided we can get our horizontal wells drilled on
time.  To that extent, we have taken a number of concrete steps to address
the continuing drilling problems that are plaguing us and we are stubbornly
working through all the issues.

In Oman we are gathering momentum. The Covid induced supply chain problems we
are experiencing are challenging our crew in Oman, but I am pleased to say
that we have located and ordered all critical long lead items for the wells in
Oman and we are currently sourcing a drilling rig. I am hopeful to start
drilling in Oman during the first half of next year.

In the USA, production at our Illinois Basin (IB) property is ramping up.  We
have had some excellent drilling results this year and all wells are now
completed, stimulated and hooked up to pumps. Five of the new wells are
already producing good quantities of oil, one more is just breaking to oil
from water and five are still being dewatered from stimulation fluids.  We
expect that IB will be in full oil production by the end of the year.   Last
week’s oil production from IB is averaging 287 BOPD.

I know that the recent downward revision in our estimated annual average
production rate was very disappointing.  We share that disappointment and I
know I speak for all Maha employees when I say that no one is working harder
than our drilling team to get the wells drilled and placed on production as
soon as possible.  This is the oil business and we are working hard and as
fast as we can to create redundancy in our production portfolio so that we are
less dependent on our Tie field.  That is why it was important to diversify
into IB and Oman during 2020.  I am confident that as we end 2021 and look
into 2022 we can look forward to more wells and more oil! 

I am grateful of the support we are getting from our shareholders and we value
your continued support.  No doubt, we will achieve our goals - the oil is
there and it has been there for millions of years, it just has to wait a few
more months until it sees daylight

As always, a big thank you to all Maha employees that I know work so hard for
all of us.  And to all fellow shareholders 
– thank you for your continued support.

Jonas Lindvall
Managing Director

 

Q3 Webcast today at 16:00 CET

There will be a live webcast today, 22 November at 16:00 CET (Sweden time) to
present the quarterly results and provide an operational update. A link to the
webcast is available on the Company’s website: www.mahaenergy.ca. Questions
posted on the day of the presentation should be made directly in the YouTube
Comments/Questions field. The webcast will be broadcast live on Nyhetsbyrån
Direkts Youtube Channel and is hosted by Laikas’ Mr. Kaarlo Airaxin, and
will feature Maha’s CEO Jonas Lindvall and CFO Andres Modarelli.

This information is such information as 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 07:30 CET on 22 November, 2021.

For more information, 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 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
(https://www.globenewswire.com/Tracker?data=D5hYdz0OPBC7jliK1iw28mGuU9JmnUA6AR7-ASzZ_zWHIuwvs4BC0lq86PzSSnNM8bOmSLVEykddnY-LQzDwXcZWlhEm3XV11v7YRweTFiwic17AnE7PdpsNi7J45rINNWJccIfVg9663JVBmtwsgw==)).
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



(1) Net result of Q4 2020 and full year 2020 includes an impairment charge of
USD 21.0 million.

 

Attachments
*     2021_MAHA Q3 Report ENG_FINAL
(https://ml-eu.globenewswire.com/Resource/Download/4d257026-836a-43d8-bf04-541ee43c34e1)
  
*     20211122 Maha Energy Press Release Q3 2021 ENG
(https://ml-eu.globenewswire.com/Resource/Download/d84391f8-d740-47cc-98e2-c012be844c5f)
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