Maha Energy AB announce December 31, 2020 Reserve Report and Resource Report

Maha Energy AB (publ) ("Maha” or the "Company”) is pleased to announce the 2020 reserve report and contingent resource booking with the following highlights:

• 2020 Reserve Replacement for 2P Reserves is 380%
• Proven Reserves increased by 183%
• Proven plus Probable (2P) reserves increased by 14%
• Contingent Resources (2C) booked at 22.3 million barrels in Oman (Mafraq)

Chapman Petroleum Engineering Ltd. ("Chapman”) has completed their annual reserve determination for the Company. Maha is pleased to announce a 183% increase in Proven ("1P”) reserves driven by successful movement of volumes from the Proved plus Probable ("2P”) category and acquisitions in the USA and Oman. The 2P oil reserves are also up by approximately 14% compared to year end 2019, primarily due to acquisitions and improvement in forecast recoveries by utilizing horizontal development wells. Overall reserve replacement ratios were very strong with 1P Reserve Replacement ratio of 1,428% and 380% on 2P.

Maha Reserves¹ as of 31 December, 2020

The main changes to this year’s reserve volumes are:

• 17.4 million-barrel of oil equivalent ("BOE”) increase in P90 (1P) reserves primarily in Brazil but with additions in Oman and the USA.
• 4.8 million barrels increase in P50 (2P) reserves in Tie, Illinois Basin and Oman (spread across Tie, Illinois Basin and Oman).

The increase of the P90 (proven) reserves at the Tie Field are due to the completion of a full field simulation model that showed horizontal development as being a very attractive development approach. This allowed Chapman to move some significant volumes from 2P to 1P based on the planned drilling in Tie this year. The Oman (0.97million) and Illinois basin (3.55million) additions to our portfolio have allowed us to add 4.52 million barrels of 2P reserves outside our largest asset base in Brazil.

[1] Volumes are Gross Working Interest volumes and are expressed before royalties and taxes.
2 The Tartaruga Concession Agreement expires in 2025 but provides mechanisms for extension based on the continued productivity of the field.  Management is confident that such an extension will be approved, and the reserves assume that the extension will be granted.  Maha has a 75%WI in the Tartaruga concession
³ Chapman Petroleum Engineering Ltd. uses the following oil price forecast for Brent Spot in $USD/STB:

The average gas price for the gas reserves at Tie Field over the next five years is forecasted by Chapman to be $1.12USD/MSCF.

The reserves review and issuance of this reserve report for the Company was made by the independent petroleum engineering consultants Chapman Petroleum Engineering 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 our 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 owns and operates a legal and beneficial 75% Working Interest (WI) in the SES-107D Block (Tartaruga) onshore Sergipe State Brazil, a 99% WI in the LAK Ranch heavy oil field in Wyoming USA, a 100% WI in the Tie Field onshore Bahia State Brazil, an initial 100% WI in the Block 70 Mafraq field under the Exploration and Production Sharing Agreement with the Government of Oman and approximately 96% WI in the acreage in the Illinois Basin.

About Reserves

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on:

• analysis of drilling, geological, geophysical, and engineering data,
• the use of established technology, and
• specified economic conditions, which are generally accepted as being reasonable, and shall be disclosed

Reserves are classified according to the degree of certainty associated with the estimates.
Proved reserves (P90) are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves (1P).

Probable reserves (P50) are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved + probable reserves (2P).

Possible reserves (P10) are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved + probable + possible reserves (3P).

About Contingent Resources

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development (TUD), but which are not currently considered to be commercially recoverable due to one or more contingencies. There is uncertainty that it will be commercially viable to produce any portion of the resources.

Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status.

Contingencies may include economic, environmental, social and political factors, regulatory matters, a lack of markets or prolonged timetable for development. Contingent Resources have a Chance of Development that is less than certain.

Project Maturity Sub-Classes are: Development Pending, Development on Hold, Development Unclarified and Development Not Viable.

This information is such information as Maha Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 20:15 CET on February 4, 2021.

For more information, please contact:        
Jonas Lindvall (CEO)
Tel: +46 8 611 05 11        
jonas@mahaenergy.ca

Victoria Berg (Investor Relations)
Tel: +46 8 611 05 11      
victoria@mahaenergy.ca

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 global basis. Maha operates four oil fields: Tartaruga and Tie in Brazil, Powder River (LAK Ranch) and Illinois Basin in the United States. The shares are listed on Nasdaq Stockholm (MAHA-A). The head office is in Stockholm, Sweden with a technical office in Calgary, Canada, as well as operations offices in Grayville, Illinois, USA and Rio De Janeiro, Brazil. For more information, please visit our website www.mahaenergy.ca.

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• 20210204 Maha Energy Press Release - Reserve Update FINAL ENG