Maha Energy : Sustainability Reports 2023

1 Message from the CEO 3

3 General Disclosures 14

1. Basis for Preparation 15
2. Governance 16
3. Strategy and Business Model 21
4. Maha's ESG Journey 21
5. Interests and Views of Stakeholders 25

Auditor´s report on the statutory sustainability report 39

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2 About

Maha 5

1. Our Assets 6
2. Our Values and Corporate Culture 13

4 Topical Disclosures 26

1. Climate-RelatedDisclosures 28
2. Other Environmental Topics 29
3. Social 32
4. Business Conduct Policies and Corporate Culture 36
5. Reserves Valuation 38

Maha Energy began its journey of building a solid base of oil and gas assets focusing on recovering O&G reserves and operating productive

assets in 2013. I am delighted to present this 2023 Sustainability Report which celebrates not only our 10th anniversary but also a year of transformative developments that form the base of what we are calling a "New Maha".

2023 was a pivotal year for the Company, as we successfully divested certain assets while expanding our Latin American footprint through strategic acquisitions. This expansion included selling our onshore assets and venturing into offshore assets in Brazil, thereby bolstering our production capabilities and reserve base significantly. Additionally, Maha Energy's venture into the Venezuelan oil market attests our strategic approach to tapping into regions with vast untapped potential under conducive regulatory frameworks. We intend to not only revitalize the assets in a safe and environmentally responsible way, but also actively contribute to surrounding communities in Venezuela through humanitarian and social investment initiatives and by utilizing local content whenever possible. Our projects will continue to be governed by our ethics and compliance principles. On the governance and operational fronts, Maha introduced vital changes in its board and management in the year, strengthening our teams.

As the world navigates the transition towards a lower-carbon economy over the next decades,

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the importance of the oil and gas sector remains paramount. It will continue to play a key role in meeting global energy demands. As the backbone of numerous industries, including transportation, manufacturing, and power generation, oil and gas remain indispensable for sustaining economic growth and development worldwide.

Maha is well positioned to take on a leading part in this relevant industry. And we intend to play this role in a responsible manner, bridging the divide between the stated commitments of companies in the oil and gas sector and their tangible actions. Our commitment to transparency is rooted in the conviction that actions speak louder than words.

In the first quarter of 2024, our Board of Directors approved a strategic framework for the incorporation of ESG in our recently restructured portfolio. This framework is the result of a thorough analysis and discussion exercise that took place along the year of 2023 and early 2024, with the support of external expert consultants.

As I reflect on 2023 and look ahead towards the future, I am pleased to witness how our team is committed to the core principles of Integrity, Responsibility, Safety, Efficiency and Transparency. Together, we are fueling growth through energy and shaping a sustainable path forward with Maha.

Kjetil Solbraekke

CEO

Maha Energy

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Maha Energy is a leading player in the oil and gas industry. Focused on developing and operating productive fields to maximize value, while seizing

special situation opportunities to drive profitability and generate value to its shareholders. The Company began its journey in 2013 and celebrated 10 years in 2023. With a team of industry experts and head office in Sweden, Maha is publicly listed on Nasdaq Stockholm's Main Market under the ticker symbol MAHA-A.

Throughout its first decade, Maha has transformed into an innovative independent energy platform, strategically growing by acquiring and developing profitable oil and gas assets. The Company focuses on workovers, drilling, and developing resources near existing infrastructure, specializing in Enhanced Oil Recovery (EOR) engineering solutions for underperforming assets, with the goal of building a diversified and balanced portfolio between mature onshore and offshore oil and gas assets.

2023 was a transition

year for Maha

2.1. Our Assets

Starting in 2022 and through the beginning of 2024, we have reshuffled our exploration and production portfolio, divesting certain assets to allow for new investments in more promising regions.

In this context, 2023 was a transition year for Maha. During the year, we effectively only operated oil and gas fields in the United States and Oman while conducting the opportunistic transactions that are setting up the New Maha, described below.

Sale of Onshore Assets in

Brazil and LAK in the USA

In February 2023, Maha completed the sale of its onshore Brazilian assets - i.e., Tiê and Tartaruga Fields - to the Brazilian independent oil company PetroRecôncavo.

At that time, Tiê and Tartaruga represented Maha's largest production volumes (about 87.5% of total production in 2022). On the other hand, the cash resulting from this divestment allowed Maha to embark on a stronger M&A strategy, positioning the Company to enter in Venezuela and strengthening its investments in the most prominent Brazilian independent oil company, 3R Petroleum Óleo e Gás S.A., of offshore exploration and production segment.

As another step to strategically streamline the asset base, in 2023 Maha has also divested the onshore LAK asset, located in the U.S. This allowed Maha to avoid future expenses and operating costs for an asset with no cash flow generation and no growth prospects, and to reinvest in projects that align with Maha's strategic objectives of optimizing its capital structure and asset base with greater value creation potential and reduced risk.

Business Combination with DBO

In May 2023, Maha has finalized a business combination with DBO, gaining 15% equity interest in 3R Offshore and its producing Brazilian fields through the Peroá cluster and Papa Terra cluster. The DBO transaction reinforced the construction of a diversified portfolio balanced between onshore and offshore mature oil and gas assets.

Securing the Acquisition

of Assets in Venezuela

Venezuela has the world's largest proven oil reserves, at more than 300 billion barrels. In October 2023, Maha secured an exclusive agreement to acquire a stake in the Venezuelan oil company PetroUrdaneta, being the definitive documents signed on March 2024.

PetroUrdaneta is a joint venture established in 2012 between Novonor Latinvest Energy (an affiliate company of the former Brazilian infrastructure conglomerate Odebrecht) and the Venezuelan national oil company Petróleos de Venezuela S.A. (PdVSA), with the purpose of exploring and producing crude oil and natural gas. The company started operations in three fields in the Maracaibo Basin region in northwestern Venezuela, state of Zulia, but was not able to overcome the obstacles imposed by the political and economic turmoil that took over the country in the last decade. Starting in 2014, oil and gas production levels decreased due to, amongst other factors, cuts in the water and electricity supply

in the area. Currently, PetroUrdaneta's fields can be considered as practically abandoned and in a state of utmost disrepair.

The agreements were signed with Novonor Latinvest, which holds a 40% interest in PetroUrdaneta. The deal will allow Maha to acquire 60% of this total, giving the Company an indirect participation of 24% in PetroUrdaneta. It also grants Maha a call option to acquiretheremaining40%stakeinNovonorLatinvest, which would then secure us a direct participation of 40% in the Venezuelan asset. The completion of the transaction is subject to certain conditions, including the Venezuelan Oil Minister's prior approval. In the meantime, Maha has been conducting an extensive due diligence on the target assets and company.

TheacquisitionofNovonor'sinterestinPetroUrdaneta is not only a significant commercial opportunity for Maha to gain a foothold in the country with the largest proven oil reserves in the world, but also offers the chance to contribute to the reconstruction of the oil industryinVenezuelawhileassuringthatinternational standards of environmental protection, transparency, long term sustainability, and community integration are respected in the process.

Furthermore, relying on our expertise in revamping mature oil fields and capacity to make the significant necessary investments to accomplish such challenging task, we are confident that Maha's entry in PetroUrdaneta will bring positive economic, social and environmental impacts to the region.

The agreements with Novonor were executed under the temporary authorization issued by the U.S. Department of Treasury on October 18, 2023, which relieved sanctions for oil and gas activities with PdVSA until April 18, 2024. Maha is working to secure all general or specific U.S. sanction relief licensing that may be required to continue operating in Venezuela beyond this date.

We acknowledge the complex economic, social and political situation in the country. Venezuelans are facing a humanitarian crisis, with hyperinflation and a contraction of purchasing power, as well as limited access to essential services being just a few of the many challenges the population is dealing with. Over the last six years, the share of households living under poverty line in Venezuela has surpassed 90 percent.

We are confident that Maha's entry in PetroUrdaneta will bring positive economic, social and environmental impacts to the region

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Maha is working to secure all general or specific US sanction relief licensing that may be required to continue operating in Venezuela beyond the expire date of the temporary license

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We trust that Maha's entry in PetroUrdaneta will benefit the company as well as the Venezuelans and other stakeholders. By investing in the restoration and improvement of the infrastructure, including pipelines, Maha will ensure that environmental safety standards are followed, mitigating the various risks associated with poorly maintained oil fields, such as fires, corrosion contamination, filtrations, and oil spills.

The reactivation of PetroUrdaneta's operations is expected to bring other benefits to the Venezuelan population. For example, to ensure the power supply for its operations, Maha will need to invest in energy infrastructure, such as power substations and transformers, which may help address the severe power supply shortages faced by the surrounding communities. Direct and indirect employment opportunities will also be created, potentially revitalizing the local economy.

Beyond the positive externalities that this venture will bring to a region that lacks the most basic resources, we have been working with experts and local representatives to understand the needs of the local communities and the potential opportunities to make additional investments aimed at the development of the local communities, in line with our global ESG strategy.

Finally, we have mapped and will continue to monitor and manage all existing and emerging risks to Maha and its stakeholders associated with the regulatory, political, and economic scenarios in the country.

By investing in the restoration and improvement of the infrastructure, including pipelines, Maha will ensure that environmental safety standards are followed, mitigating the various risks associated with poorly maintained oil fields, such as fires, corrosion contamination, filtrations, and oil spills.

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Sale of Assets in Oman

An additional step in our portfolio restructuring was taken in January 2024, when Maha signed an SPA to transfer its 65% working interest in Oman's Block 70 to Mafraq Energy, our local partner in this venture in the Middle East.

After facing challenges with high-viscosity oil during production testing and reaching the conclusion that the project would require new tests and significant investments for production operations, the sound and responsible business decision for Maha and our shareholders was to exit the partnership. From December 1st, 2023, Mafraq Energy took over the project's responsibilities and costs, releasing Maha from all obligations.

This traction represents a risk reduction and further streamlining of asset base to concentrate on Latin American portfolio, while keeping a share of Block 70 project's potential upside through our earnouts.

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OMAN

Block 70

ONSHORE

Maha's Stake: 65% working interest

FEBRUARY

2023

Closing of the sale of Tie and Tartaruga Fields in Brazil

Signing of Exclusivity Agreement to acquire 24% indirect equity interest in the Venezuelan PetroUrdaneta

Signing SPA for the Sale of Block 70 in Oman