Over the past year, Maha has continued to transform. Last year, it sold Maha Brazil, combined with DBO, purchased exclusivity to buy part of PetroUrdaneta with assets in Venezuela, and divested Block 70 in Oman, among others. In January 2024, it bought 5% of 3R Petroleum (3R) and has suggested a carveout of 3R’s offshore assets and a business combination with PetroReconcavo, another listed Brazilian company with onshore assets. An EGM has been called in 3R for the end of March to decrease the number of board members from seven to five and to elect Maha’s chair and one of its board members to 3R’s board. If accepted, this would leave Maha holding 40% of 3R’s board seats.

Maha produced 1,652 boepd in February, which was down 30% from January owing to workovers in Papa Terra. 3R, of which Maha owns 5%, produced 42,709 boepd in February, which was down 10% on January. We anticipate significant pickup in the coming years as both Papa Terra and 3R Onshore ramp up production in 2025. There is also significant optionality in PetroUrdaneta’s Venezuelan assets. These are currently producing 1,600 bopd, but have potential production of 20,000 bopd.

Trading at around half its NAV with plenty of upside