McDaniel & Associates Consultants Ltd. (“McDaniel”) has completed their first annual reserve and resource determination for Maha Energy AB (publ) (“Maha” or the “Company”). Main changes from last year’s reserves and resources numbers are related to:
the successful completion of the previously announced Farm Out and Joint Operating Agreement with Mafraq Energy LLC for Block 70 in Oman, in which Maha is the Operator of the block and reduces its working interest (“WI”) to 65%;
The previously disclosed transaction involving the expected divestment of Maha’s Brazilian entity and, consequently, its oil and gas assets, which SPA was signed on December 27th,2022, and is why no reserves are being reported for Tie and Tartaruga fields.
Maha Reserves1 as of 31st December 2022
The main changes to this year’s reserve volumes are:
A reduction of 1.0 million barrels of oil (-66%) in 2P reserves (Proved + Probable) (“2P”) in Oman as a result of the reduction in the WI and changes in timing of upcoming wells. Those reserves reduced related to changes in well timing remain in the resource classification and will be captured if the project moves to commerciality;
A reduction of 0.5 million barrels of oil (-14%) in 2P reserves in the US assets resulting from an adjustment of type curves, the number of locations and the estimated ultimate recoverable of future wells;
An increase of 214 thousand barrels (+6%) in 3P reserves (Proved + Probable + Possible) (“3P”) in the US assets due to 9 additional locations.
Maha Contingent Resources as of 31st December 2022
These resources are contingent upon approval of a Declaration of Commerciality and sanctioned Field Development Plan. At that point, field activity could move these resources towards a reserve category.
The reserves review and issuance of this reserve report for the Company was made by the independent petroleum engineering consultants McDaniel & Associates Consultants Ltd., Calgary, Canada. The evaluation was carried out in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook, the professional practice standard under their Permit to Practice with APEGA and under the guidelines of the European Securities and Markets Authority (ESMA). The report has been prepared and supervised by a “Qualified Reserves Evaluator”.
Maha Energy AB, through its subsidiaries, (i) owns and operates a legal and beneficial 65% WI in the Block 70 Mafraq field under the Exploration and Production Sharing Agreement entered with the Sultanate of Oman; (ii) approximately 96% WI in the acreage in the Illinois Basin (USA); and (iii) a 99% WI in the LAK Ranch heavy oil field in Wyoming (USA).
The previously disclosed potential business combination with DBO and its related assets are not contemplated in the above numbers and would be further disclosed upon closing of the said transaction.
Due to the previously disclosed transaction involving the expected divestment of Maha’s Brazilian entity, together with Tie and Tartaruga assets, no reserves were reported hereunder and/ or will be disclosed for those fields.
