Maha Energy AB Announced Completion and Preliminary Well Test Results from Tie-4 A preliminary free flow well test and clean-up of Tie-4 yielded an initial comingled and restricted flow rate of approximately 936 BOEPD1 (825 BOPD2 and 668 MSCFPD2 of gas). The well test had to be curtailed and shortened due to the high rates. The rig will now be moved out and the well hooked up to the permanent oil production facilities at Tie to fully clean up and test the well.

As previously announced, Tie-4 was successfully drilled, logged and cased as a vertical dual zone producer. Final completion operations have been executed on Tie-4 including the running and function testing of the downhole Electric Submersible Pump (“ESP”) on 3 ½” production tubing. Subsequent to the running of the ESP, a short clean up flow test was executed to flow back completion fluids and confirm initial well productivity.

Whilst slowly ramping up the ESP, the limits of the test facility were quickly reached and at this point the ESP was stopped and the well was choked back and allowed to free flow. Testing was constrained at a small 24/68”- 28/64” choke. The following data was acquired flowing to a temporary test package with limited measurement capability.

Both the Agua Grande (AG) and Sergi SG) zones are perforated and are comingled in the 3½” single tubing completion. Initial free flow test results are constrained by surface flaring limitations and are as follows: Preliminary pump deliverability calculations made from downhole pump pressure readings suggests that the ESP will work as per design and operate within its design window of 1,000 – 2,400 BFPD. Work will now focus on tying the well into the permanent production facilities and place the well on production.

It will take 7 - 10 days to move the drilling rig off location and then 3 - 7 days for tie in and well testing. The final flow rates will be announced later in January once Tie-4 is tied in, fully cleaned up and placed on a 24 hour test through the permanent Tie facility test separator.