World News: 04:00 GMT Monday 11th November 2019. [Maha Energy AB via Globe Newswire via SPi World News]
Maha Energy AB (publ)Strandvägen 5ASE-114 51 Stockholmwww.mahaenergy.ca
Press releaseStockholmNovember 11, 2019
The combination of delays in commissioning of various critical equipment at the Tie field, greater than expected associated gas production and the mid October expiry of the temporary plant commissioning gas flare dispensation permit granted in April has necessitated a reduction in gas production at the Tie field. This in turn resulted in the Company being restricted in its ability to produce oil at the Tie Field as expected. The reservoir deliverability from the current wells remain more than the current 4,850 BOPD plateau and is not the reason for the reduction in the 2019 annual average production rate.
The current facility delays mainly concern:
As and when GTW starts to deliver additional electricity through its generators, the waterflood reduces the GOR and the separator is running properly the Company will be able to progressively increase the oil production in line with previously communicated volumes.
During the month of October, the GTE-4 Sergi (long string) temporarily stopped free flowing and the Company has decided to proceed with installing artificial lift as and when operations allow. This was not unexpected and therefore and in anticipation of this, the Company has already installed the surface jet pumping equipment on the site. Planning operations has now commenced to workover GTE-4 and install the downhole pump on the Sergi.
As far as the Company is aware the refinery is still awaiting final clearance from the authorities to start up the previously installed expansion equipment at the refinery. Once this permit is in place, the Company can increase its deliveries by 800 BOPD to 3,000 BOPD total to the refinery. This final step will increase the daily oil offtake capacity at the Tie Field from the current 4,050 BOPD to 4,850 BOPD allowing the Company to safely sell its target maximum production for the field.
The Facilities at Tartaruga are currently sized to handle a maximum of about 800 BOPD (gross). During the second half of 2019, work started to upgrade the facilities to handle up to 2,500 BOPD (gross) and associated gas. Currently, engineering and design is being completed and physical work has already started. The upgraded facilities are expected to be completed during the middle of the second quarter next year. However, the plan is to incrementally increase production as and when capacity is brought on line. It is not anticipated that there will be any significant production stoppages during the upgrade work.
Jonas Lindvall commented: “While I regret to issue this revised forecast – the Tie and Tartaruga fundamentals remain intact - from the Tie Field alone, we are well on our way to:
With the recent exciting drilling results from the Tartaruga Field, the planned completion and testing of 107D and flow testing of Maha-1 the Company is poised to continue to grow!”
Maha Energy holds a 75% working interest in the SES-107 Tartaruga oil and gas concession onshore Brazil. Petrobras holds the remaining 25% and is non-operator.
Certified Advisor: FNCA Sweden AB, email@example.com, Telephone: +46-8-528 00 399.
Jonas Lindvall (CEO)Tel: +1 403 454 7560 Email: firstname.lastname@example.org
Ron Panchuk (EVP)Tel: +1 403 454 7560 Email: email@example.com
The information was submitted for publication through the agency of the contact persons set out above on November 11, 2019, at 5:00 a.m. (CET)
Maha Energy AB is a Swedish public limited liability company. FNCA Sweden AB has been engaged as Certified Adviser. The Company's auditors are Deloitte. The Company's predecessor Maha Energy Inc. was founded in 2013 in Calgary, Canada, by Jonas Lindvall and Ron Panchuk. In May 2016, the new group was formed with Maha Energy AB as parent company for purposes completing an initial public offering on the Nasdaq First North Growth Market Swedish stock exchange. Jonas Lindvall, CEO and Managing Director, has 26 years of international experience in the oil and gas industry, starting his career with Lundin Oil during the early days of E&P growth. After 6 years at Shell and Talisman, Jonas joined, and helped secure the success of, Tethys Oil AB. Maha's strategy is to target and develop underperforming hydrocarbon assets on global basis. The Company operates three oil fields, Tartaruga and Tie in Brazil and LAK Ranch, in Wyoming, U.S. For more information, please visit our website www.mahaenergy.ca.
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Globe Newswire: 04:00 GMT Monday 11th November 2019
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