Carnegie Investment Bank
Maha Energy
Date Title Alternative
2024-04-12 Q1 production in line with last year's average Download | Show Close
2024-04-11 MOU for possible transaction regarding 3R Offshore holding Download | Show Close
2024-04-08 Updated reserve report Download | Show Close
2024-04-04 Several catalysts ahead Download | Show Close
Research | 4 Apr 2024 | Maha Energy

Several catalysts ahead

 

Another suggested business proposal for 3R

Late last week, Enauta Participações (Enauta), a Brazil-based O&G company, sent a letter to the Board of Directors of 3R Petroleum, of which Maha owns 5%. Enauta believes a merger between itself and 3R would be superior to a carveout of 3R’s offshore assets and a business combination with PetroRecôncavo, stating that its proposed business combination could lead consolidation of the Latin American Oil & Gas sector. 3R will evaluate the proposal over 30 days and has temporarily suspended its internal efforts towards a possible business combination with PetroRecôncavo.

 

Transaction should increase NPV significantly

Maha’s current operations have an NPV of around USD 250m or almost SEK 15 per share. We believe its suggested business proposal with PetroRecôncavo would increase this NPV by more than USD 100m or around SEK 6 per share. Although we have limited details regarding where any combination with Enauta would lead, we believe either combination should provide significant upside in NPVs. We also believe Enauta’s proposal suggests the Brazilian E&P sector is ready for consolidation, which implies significant potential upside in the investment Maha has made in 3R.

 

Will sanctions on Venezuela be reimposed?

General License 44 (GL44), which has provided relief to Venezuela’s oil and gas sector, expires on 18 April 2024. Maha has paid EUR 4.6m for exclusivity to indirectly acquire up to 24% of PetroUrdaneta, which operates in Venezuela. Should GL44 be extended, we believe Maha would exercise its option, increasing P2 reserves by 759 mboe from almost 22 mboe. Venezuela has the largest oil reserves in the world but the country accounts for less than 1% of global oil production.

 

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2024-03-21 Joining 3R's board Download | Show Close
2024-03-19 Keeps on transforming Download | Show Close
2024-01-18 Acquires 5% of 3R Petroleum for USD 69m Download | Show Close
2024-01-09 Strong production in December Download | Show Close
2023-12-14 Transformation continues Download | Show Close
2023-11-17 Asset in Venezuela provides optionality Show Close
2023-08-09 Further production increases in July Show Close
2023-08-08 Update on Mafraq in Oman Show Close
2023-05-24 Completes the combination with BDO 2.0 Show Close
2023-05-24 Several upcoming catalysts Show Close
2023-01-31 Sale of Maha Brazil will result in cash larger than market cap Show Close
2022-12-02 Investigates potential divestments of assets Show Close
2022-11-20 Robust indicators that the Tie wells are onstream Show Close

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