Maha Energy Announces Preliminary Capital Plan 2022 and


Maha Energy AB (publ) (“Maha” or the “Company”) has a production forecast of 4,000-5,000 BOEPD for 2022, compared to the estimated volume of 7,000 BOEPD presented in the 5-year operating strategy in early March 20211. The preliminary guidance takes into account the impact of the previously published delay and recent reconfiguration of the Tie-4 production well from a horizontal well to a vertical well and is subject to certain assumptions as described below, including a possible farm downing of portions of Block 70 in Oman . The guidelines are subject to final approval by the company’s Board of Directors of the proposed 2022 Capital Plan, which is expected early in the first quarter of 2022.

The company is pleased to announce preliminary details of its 2022 Capital Plan and Production Guidelines as follows (subject to board approval):

Summary of the 2022 capital plan

Area Capital program Quarter of 2022 Description / purpose
Tie New fountain
Tie-5 (Ag-Hz)
Q1 Horizontal well to maintain the long term production plateau of the Tie field
Tie New fountain
Tie-6 water injector
Q2 Maintain a long term production plateau in the tie field
Tie New fountain
Tie-7 water injector
Q3 Maintain a long term production plateau in the tie field
Tie Well of the water source Q1 Provide makeup water for water injection
Tie Tie-3 Q1 Conversion to water injector according to the development plan
Tie Facilities All year 2022 Well connections, pipelines, new well pads and facilities, upgrades for water treatment
Tartaruga TTG-4 HZ Good Q4 Increase in production at TTG in the core deposit area
IB 2 gross wells / 1.5 net Q2-Q3 Engagement fountain
Oman (Mafraq) 8 new wells Q2-4 Evaluation and production pilot drilling
Oman (Mafraq) Extended well test facility Q2 Temporary test facilities for pilot drilling
LAK None N / A Regulatory well interventions can occur

1 Company presentation for 5 years of operating strategy

Tie Field – Bahia, Brazil

Commitment – Capital Plan 2022

Tie-5 Hz
Tie-5 is being drilled from the GTE-4 pad and completed in the Agua Grande formation. This is a completely redesigned horizontal delivery well with an electric submersible pump.

Tie-6 is a two-zone water injector drilled on the South Pad that aims to sweep the southwest portion of the structure

Tie-7 is a two-zone water injector that was drilled on the new northwest oil rig to search the northwest portion of the structure.

Tie-3 conversion
Tie-3 was designed and drilled as a hybrid oil producer, with a subsequent switch to water injection. This conversion starts earlier than planned and will be carried out with a workover rig in the first quarter.

Tie devices
Capital for the facilities is focused on future wellbore connections, construction of the new northwest pad and water treatment facilities, including grouting.

Tartaruga field – Sergipe, Brazil

Tartaruga – Capital Plan 2022

TTG-4 Hz
A horizontal production well targeting the Penedo 1 deposit is now being postponed and is expected to be mined towards the end of the fourth quarter of 2022 and commissioned in 2023.

LAK Ranch –Wyoming USA

LAK capital plan 2022

Production optimization
The LAK Ranch heavy oil field was closed at the beginning of the pandemic in 2020. Apart from the official requirements, no work is planned for 2022.

Illinois Basin – Illinois and Indiana, USA

IB-2022 Capital Plan

Production from the IB area will continue in 2022. 2 gross / 1.5 net wells are planned for the year and these holes are considered commitment wells to keep all leases in good condition. Once the final results of the 2021 drill program are available in the first quarter of 2022, future IB drilling will continue to be evaluated.

Mafraq Oil Field, Oman

Oman – Capital Plan 2022

A non-binding term sheet was signed, which provides for a possible farm in Block-70. This farm is expected to close in the first quarter of 2022 and all potential production from Block-70 is anticipated to be closed down.

Eight wells are currently planned for 2022 due to ongoing equipment procurement and contract negotiations. Two of these are appraisal wells, which are primarily intended to collect reservoir data and are not allowed to be included in test production, and the remainder are horizontal pilot wells testing the delivery capability of the Mafraq Reservoir.

A temporary Extended Well Test (“EWT”) package is being procured and constructed to enable advanced drill test production to begin from the pilot holes.

The company expects to complete most of the capital plan before the end of 2022, with the exception of the TTG 4 production well, which is expected to be drilled towards the end of the fourth quarter of 2022 / Q1 2023. The exact timing of operations will depend on a number of factors that may be beyond Maha’s control, including the supply of long lead items, rig availability, regulatory approvals and logistics, which in turn affect the company’s total annual production can affect.

Therefore, this preliminary production forecast for 2022 is net for the company and after Oman Farm-Down (but before state or property licenses and / or state production share) and is expressed in the range of 4,000 – 5,000 BOEPD, around 8% of this is estimated to be gas2.

2 Normal units for specifying gas production are m3 / day or ft3 / day. An average industry conversion factor to barrels does not use a simple volumetric conversion factor of m3 (or ft3) to barrels. Instead, the energy produced by burning 1 barrel of oil is equated to the same amount of gas required to produce the same amount of energy. This of course depends on the type of gas being burned, but the industry average, 6,000 standard cubic feet (scf) of gas produces the same amount of energy as 1 barrel of oil. As such, 6,000 scf of gas will be 1 barrel of oil equivalent in this and future production projections.

This information is information that Maha Energy AB (publ) has to publish in accordance with the EU Market Abuse Regulation. The information was submitted for publication on December 30, 2021 at 3:00 p.m. CET via the contact person listed below.

For more information, please contact:
Jonas Lindvall (Managing Director)
Tel: +46 8 611 05 11
[email protected]

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11
[email protected]

Beware of forward-looking statements
Certain statements and information contained herein constitute “forward-looking information” (as it becomes applicable) Securities Act). Such statements and information (collectively, “forward-looking statements”) address future events, including Maha Future performance, business prospects or opportunities for energy. Forward-looking statements include statements, among other things in relation to estimates of reserves and / or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. The ultimate recovery of reserves or resources is based on projections of future results, estimates of amounts that cannot yet be determined and assumptions made by management.

All statements that are not historical facts may be forward-looking statements. Statements about proven and probable Reserves and resource estimates may also be viewed as forward-looking statements and conclusions based on conclusions certain assumptions that the reserves and resources can be economically developed. Any statements that express or have discussions with relating to any predictions, expectations, beliefs, plans, projections, goals, assumptions, or future events or performance (often, but not always with words or expressions such as “search”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “can”, “will”, “project”, “predict”, “Potential”, “targeting”, “intend”, “could”, “could”, “should”, “believe” and similar expressions) are not historical statements of fact and can Be “forward-looking statements”. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from those anticipated in such forward-looking statements. This cannot be guaranteed These expectations and assumptions will prove correct and no reliance should be placed on such forward-looking statements. These statements speak only as of the date of publication and Maha Energy does not intend or undertake any obligation to update these forward-looking statements unless required by applicable law. These forward-looking statements involve risks and uncertainties relating to, including operational risks (including exploration and development risks), production costs, availability of drilling equipment, Dependence on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risks and financial risks. These risks and uncertainties are described in more detail under the heading “Risk Management” and elsewhere in Maha Energy’s annual report. Readers are cautioned that the above list of risk factors is not intended to be exhaustive. Actual results could differ materially from those expressed or implied in such forward-looking statements. Forward-looking Statements are expressly restricted by this warning notice.

About Maha
Maha Energy AB (publ) is a publicly listed, international upstream oil and gas company whose business activities include the exploration, development and production of oil and natural gas. The strategy is to target and develop underperforming hydrocarbon assets on a global scale. Maha operates four oil fields: Tartaruga and Tie in Brazil, Powder River (LAK Ranch) and Illinois Basin in the USA. The shares are listed on Nasdaq Stockholm (MAHA-A). Headquartered in Stockholm, Sweden, with a technical office in Calgary, Canada, and operations offices in Grayville, Illinois, USA and Rio De Janeiro, Brazil. For more information, please visit our website

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