Maha Energy AB (publ) (“Maha” or the “Company”) Announces revision of 2020 capital program - an operational update, and a question and answer webcast on Monday 23 March

­­­Maha Energy AB (publ)
Strandvägen 5A
SE-114 51 Stockholm
www.mahaenergy.ca

Press Release
Stockholm
March 20, 2020

Maha Energy AB (publ) – Announces revision of 2020 capital program - an operational update, and a question and answer webcast on Monday 23 March

• Reduction in capital program from US$ 20.7 million to US$ 12 - 13 million with a further reduction of US$ 4.8 million possible, if future conditions dictate.
• 2020 production guidance remain unchanged (5,000 – 5,500 BOEPD annual average).
• Further testing and stimulation of 7-TTG-3D-SES (“Maha-1”) suspended in order to efficiently redeploy capital under the current market conditions.
• Tie Field remains main focus of 2020 production activity.
• Question and Answer (Q&A) Session with CEO Jonas Lindvall on Monday 23 March, 2020 at 18:00 CET.

Maha Energy AB ("Maha" or the "Company") today announced revisions to its 2020 capital program in response to recent commodity price volatility. All dollar amounts are in United States ("US") dollars, unless otherwise indicated.

Jonas Lindvall, President and Chief Executive Officer of Maha, comments: "As a result of current and foreseeable oil price weakness, we are reducing operating activities and our capital program for 2020. We plan to continue operating at reduced activity levels until there are clear signs of a recovery in oil prices. Despite this planned reduction in capital investment, the 2020 production guidance will not be affected.”

Revised 2020 Capital Program
The 2020 capital budget is revised to a maintenance range of US$ 8 to 12 million and further reductions in operating costs are being implemented. In addition to reducing the costs, Maha is also benefiting from the recent depreciation of the Brazilian Real against the US Dollar. The Brazilian Real has declined 25% versus the US dollar from the original budget estimate. The majority of the operating costs and G&A within Brazil are denominated in Brazilian Reals.

Jonas Lindvall continues: “We are always focused on value. To that end, our team rigorously assess project economics and will not deploy capital if commodity prices do not support sufficient returns.  Maha owns and operates producing assets with low declines and low cost structures (OPEX costs in the US$ 5/bbl range), and both the Tartaruga and Tie field will be instrumental in the continued success of Maha.”