First Quarter 2021
The Company secured a USD 60 million loan financing and USD 10 million equity investment with leading Brazilian investment bank BTG Pactual.
The Tie-3 oil producing well has tested a combined 628 BOEPD, (549 BOPD, 0 BWPD and 470 MSCFPD of gas) from the Itaparica and Agua Grande reservoirs. The Sergi reservoir was not tested at this time.
Daily oil & gas production for Q1 2021 averaged 3,742 BOEPD (Q1 2020: 3,288 BOEPD)
Revenue of USD 15.8 million (Q1 2020: USD 11.2 million)
Operating netback of USD 11.0 million or USD 33.80 per BOE (Q1 2020: USD 7.9 million or USD 27.91 per BOE)
EBITDA of USD 10.2 million (Q1 2020: USD 6.4 million)
Net result of USD 5.5 million (Q1 2020: USD 3.2 million)
About Block 70 and the Mafraq Field
Block 70 is an onshore block that includes the shallow undeveloped Mafraq oil field. The Mafraq oil field was discovered by Petroleum Development Oman (PDO) in 1988 and was further delineated by four wells and 3D seismic in stages until 2010. Two wells were placed on pump production tests, of which one was placed on a 22-day test and produced a stable and cumulative volume of over 15,700 barrels of oil before operations were suspended. The Mafraq oil field is estimated by third parties to contain between 185 - 280 million barrels of original oil in place (OOIP). The productive reservoir is shallow, at approximately 430 m. below ground level.
Production Volumes
The Company s aggregate sales production for the month of August totaled 102,108
1 barrels of oil and 51.013 million scf of gas for a combined average production of approximately 3,568 BOE/day
2, before royalties and taxes.
Brazil production progressively increased during August as both the gas and oil customers, continued with previously announced upgrading and commissioning of their facilities to take more volumes. Oil deliveries to Petrobras from the Tie Field were affected for four days due to unscheduled maintenance at the Petrobras unloading station. Tartaruga Field lost one day of production due to minor pump maintenance in the field.
Maha Energy holds a 75% working interest in the SES-107 Tartaruga oil and gas concession onshore Brazil. Petrobras holds the remaining 25% and is non-operator.
Maha Energy AB (publ) - Comments on current market conditions
Maha maintains a very close eye on the current market conditions. Using up-to-date production information, pricing and spending limits, the Company monitors the financial well-being of the company very closely. As of today, the company has determined that all future financial obligations can be met, including full repayment of the bond in May 2021, given the current oil market conditions. Furthermore, and if necessary, the company has many operational options at its disposal to address a prolonged depressed oil price.
Maha has already taken steps to reduce operating expenses. For example, at the end of March, operations at the LAK Ranch oil field will be suspended until further notice. The pre-development LAK Ranch heavy oil field is uneconomic at the current oil prices.