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MAHA TO 2 A - Maha Energy AB News Story

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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 announce change to Tie-4 well design due to ongoing issues with wellbore stability and updated completion date

Tue 30th November, 2021 3:35pm
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Due to ongoing issues with reactive shales in the wellbore Maha Energy AB has
elected to plug back the wellbore and drill a simpler sidetrack to ensure
continued production growth at the Tie field. The company does not expect this
to impact the completion date of the Tie-4 well significantly nor the Tie
annual production for 2021. However, Tie-4 is most likely to be placed on
production after the year-end which will affect the 2021 exit production rate
estimate of 5,000 BOEPD and 5,500 BOEPD.
* Due to highly reactive shales encountered at drilling angles of greater than
65 degrees, and thus causing issues with wellbore stability the Company has
elected to plug the well back to the 9 5/8” casing shoe.
* A vertical sidetrack will be drilled from the 9 5/8” shoe targeting both
the Agua Grande and Sergi reservoirs.
* The well will be completed as a dual zone commingled Electric Submersible
Pump completion.
Jonas Lindvall, CEO of Maha Energy comments: ”We are obviously disappointed
with the challenges we have encountered in this well. Although these types of
well design are common in North America we are applying this as new technology
to the Tie field and this is the first attempt targeting these zones. We are
confident that we will succeed in due course. In the meantime we can apply a
tried and tested approach and continue Tie-4 as a vertical well to commence
production as soon as possible. Hopefully before year-end, but most likely in
the beginning of next year.”

(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 persons set out
below, at 16:35 CET on 30 November, 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
(https://www.globenewswire.com/Tracker?data=dnYCGUPM0Mmzf_KjWjWhqcdKFmSMahcKyhK8_Y20Tmg-YBKvPel4NPxnNyTNn_QqqBBpn07xLJeN7bJryEUx4d3z0jLE0Cq6Xl8DhnTXY1RToMNIuYgxeXu95UorvKH-eaGE_ww36W0z1yuAcmz4Jg==)).
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

Attachment
*     20211130 Maha Energy Press Release Tie4 ENG
(https://ml-eu.globenewswire.com/Resource/Download/938c84cc-88a9-48e8-87a9-bd83ab6311b0)
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