BW Energy: Q1 2024 trading update

BW Energy: Q1 2024 trading update

Issuer

BW Energy Limited

BW Energy: Q1 2024 trading update

BW Energy, as the operator of the Dussafu Marine licence in Gabon and the
Golfinho cluster offshore Brazil, provides an update on its operations and
development. The Company will publish financial figures for the first quarter of
2024 on Friday, 24 May 2024.

Net production to BW Energy from the operated assets was 2.48 million barrels of
oil in the first quarter of 2024. This includes production from the Tortue,
Hibiscus and Hibiscus South fields in the Dussafu licence (73.5% working
interest) and production from the Golfinho field (100% working interest).

DUSSAFU

Net production from the Dussafu licence averaged 18,260 barrels of oil per day
in the quarter, amounting to a net production to BW Energy of 1.66 million
barrels of oil for the period. Production remained impacted by the electrical
issues affecting the ESPs (electrical submersible pumps) on the Hibiscus field,
as one well remained offline. BW Energy completed two liftings in the quarter,
both in March of approximately 1.4 million barrels in total net at an average
realised price of USD 83 per barrel. Production costs (excluding royalties) for
the period was approximately USD 23 per barrel. This compares with Q4 production
costs of USD 28 per barrel reflecting improved operational efficiency and
production.

The net sold volume, which is the basis for revenue recognition in the financial
statement, was approximately 1.7 million barrels including 97,500 barrels of DMO
deliveries and 203,800 barrels state profit oil with an over-lift position of
167,800 barrels at the end of the period.

On 8 March, production started from the DHBSM-1H well in the Hibiscus South
field five months after the initial discovery in November 2023. Production
performance from the well has been in line with expectations.

Drilling of the DRM-3H well in the Ruche field has been completed with
production start pending delivery of a new conventional ESP (electrical
submersible pump). This is expected during the second quarter. The well was
drilled as a horizontal well from the MaBoMo production facility to a total
depth of 5,795 metres into Gamba sandstone reservoir. The well is located
approximately 3.7 kilometres east of the MaBoMo production platform.

Following completion, the Borr Norve jackup has commenced drilling operations on
an additional pilot well, DHBSM-2P, to test the northern part of the recently
discovered Hibiscus South field where the DHBSM-1H production well was recently
put on production. If the DHBSM-2P pilot well is successful, a production well
is planned.

Separately, in May, the FPSO BW Adolo will undergo annual scheduled maintenance,
resulting in a planned shutdown for approximately three weeks.

GOLFINHO

Net production from the Golfinho field averaged 9,030 barrels of oil per day in
the first quarter, amounting to a total production of 822,500 barrels in the
period. One lifting was carried out in February of 490,000 barrels at a realised
price of USD 82 per barrel. Remaining inventory was approximately 657,900
barrels at the end of the period. Production cost (excluding royalties) averaged
USD 48 per barrel. This compares with Q4 production costs of USD 44 per barrel,
mainly reflecting lower production.

OTHER ITEMS

During the quarter, the Company extended and increased the Golfinho prepayment
facility to USD 120 million from originally USD 80 million. The facility was
fully drawn at the end of the period.

The Company has also executed a sale and leaseback agreement with a Minsheng
Financial Leasing Co entity for the MaBoMo production facility. The agreement
will provide USD 150 million of gross sales proceeds under a ten-year lease term
with an option to repurchase the unit from the end of year seven. The
transaction frees up net USD 110 million of liquidity to BW Energy, which will
be used to finance the execution of the growth strategy including the continuing
development projects in Gabon.

BW Energy had a cash balance of approximately USD 150 million on 31 March 2024,
compared to USD 194 million on 31 December 2023. The decrease reflects the net
impact from oil sold in the period, drawdown on the expanded prepayment facility
and investments, primarily related the ongoing Hibiscus Ruche field development.
The Company had a total drawn debt balance of USD 412.8 million as of 31 March
2024 including the Golfinho prepayment facility.

The company expects to recognise a net loss of USD 3.3 million in the first
quarter related to the hedging program, of which USD 3.8 million is unrealised.

For further information, please contact:

Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76

[email protected]
(mailto:[email protected])

About BW Energy:

BW Energy is a growth E&P company with a differentiated strategy targeting
proven offshore oil and gas reservoirs through low risk phased developments. The
Company has access to existing production facilities to reduce time to first oil
and cashflow with lower investments than traditional offshore developments. The
Company's assets are 73.5% of the producing Dussafu Marine licence offshore
Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in
the BM-ES-23 block, a 95% interest in the Maromba field in Brazil and a 95%
interest in the Kudu field in Namibia, all operated by BW Energy. Total net
2P+2C reserves and resources were 580 million barrels of oil equivalent at the
start of 2024.

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site