Maha Energy AB: Production and operation update September 2023

Maha Energy AB (publ) ("Maha" or the "Company"), announces the preliminary unaudited net production data for September 2023 and the closing of the divestment of LAK Ranch.

Daily average production (boe/day) in 2023*
Assets	Q1-23	Q2-23	Q3-23	Aug	Sep
Peroá cluster*	437	560	560	539	520
Papa Terra cluster*	936	1,217	1,214	845	1,428
Illinois Basin	233	211	179	177	179
Total	1,606	1,988	1,953	1,561	2,127

Papa Terra cluster
The production at the Papa Terra cluster increased 69% from August to September 2023. The performance is due to greater stability in the asset's production during September, following preventive and corrective maintenance carried out in previous periods. An intense maintenance and integrity recovery campaign for units 3R-2 (TLWP) and 3R-3 (FPSO) remains prioritized, which will progressively reduce the risks of unscheduled interruption of the units and is expected to result in greater operational efficiency, as we can see in the latest quarter over quarter trend.

Peroá cluster
The production at the Peroá cluster decreased 3% from August to September 2023 as a result from lower demand in the Brazilian gas market during September.

Illinois Basin
The production at Illinois Basin increased 1% from August to September 2023. In the beginning of October 2023, Maha commenced a program consisting of three production wells and production battery installation. After completion, the wells are expected to increase Maha's current production from the Illinois Basin with production ramp up starting at the end of the year.

LAK Ranch
Maha has completed the divestment of the heavy oil field LAK Ranch in USA. Maha acquired the asset in 2013 and it was shut in at the beginning of 2020. The reason for the divestment decision was to avoid new future expenses and operating costs for an asset without cash flow generation and growth perspective, and potential future liabilities and relinquishment costs.

The consideration amounts to USD 10 plus positive effective date adjustments (working capital) offset by transaction expenses. Through the divestment, all amounts for performance bonds filed will also be returned to Maha, which will be more than sufficient to cover transaction's costs. In addition, all liabilities for Asset Retirement Obligations at the well, facility and surface lease level for LAK Ranch will be released from Maha's balance sheet.

Maha's Assets
Maha has an indirect working interest of 15% in the Peroá cluster and 9.375% in the Papa Terra cluster, with 3R Petroleum Offshore S.A. being the operator.

Maha is the operator holding 97% working interest in the Illinois Basin. Maha is also the operator of Block 70 in Oman with 65% working interest, where production testing commenced in March 2023.

For more information, please contact:
Kjetil Solbraekke, CEO, Phone: [phone], E-mail: [e-mail]
Guilherme Guidolin de Campos, CFO, Phone: [phone], E-mail: [e-mail]
Jakob Sintring, Head of IR, Phone: [phone], [e-mail]

Miscellaneous
The information was submitted for publication, through the agency of the contact persons set out above, 8:00 CEST on 5 October 2023.

* Note: The information included hereunder relates only to Maha's entitlement on Peroá and Papa Terra clusters' production, considering its indirect participation interest on said assets. It was calculated based on the information made public by 3R Petroleum. The production from Peroá and Papa Terra clusters are not consolidated in Maha's financial reporting. Maha's share of results from the clusters are instead reported as Income from investment in associate.

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 a global basis. Maha holds direct and indirect interests in producing assets in Brazil and the United States and in an exploration asset in the Sultanate of Oman. The shares are listed on Nasdaq Stockholm (MAHA-A). For more information, please visit Maha's corporate website www.mahaenergy.ca.