Seacrest Petroleo Bermuda Limited: Second quarter 2024 update

24 Jul 2024 17:50 CEST

Rio de Janeiro, Brazil/Hamilton, Bermuda, 24 July 2024: Seacrest Petroleo
Bermuda Limited ("Seacrest Petroleo" or the "Company") will publish its
financial report for the second quarter 2024 on Friday, 30 August. Today, the
Company provides updates on production and sales volumes for the period, its
infill drilling program, the work on the subsea pipelines at the Terminal
Norte Capixaba, the Company's liquidity and financing plans, and guidance for
the remainder of 2024.

NOT FOR DISTRIBUTION IN THE UNITED STATES

Production Update

Seacrest Petroleo's net production of oil and natural gas averaged 7 959 boepd
in the second quarter of 2024, 5% lower than the production in the first
quarter of 2024, and 10% lower than the production in the second quarter of
2023. During the quarter, the Company experienced some degraded light-oil
production facilities performance; these have been rectified, with the quarter
ending production at ~8 400 boepd.

The volume of oil produced in the second quarter was 655 kbbls. The volume of
oil sold in the quarter amounted to 632 kbbls, resulting in an underlift
position. Seacrest Petroleo obtained an average net realized oil price of USD
75.2 per bbl1 in the quarter.

The production split in the second quarter was in line with the previous
quarter, with 90% oil and 10% gas. The volumes of gas produced are used solely
in the Company's own operations.

Table for quarterly Production and Offtake Update:

+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| Production (boepd) | Q2'24 | Q1'24 | Q2'23 |
+----------------------------------------------------+-------+-------+-------+
| Oil | 7 197 | 7 532 | 8 033 |
+----------------------------------------------------+-------+-------+-------+
| Gas | 762 | 844 | 763 |
+----------------------------------------------------+-------+-------+-------+
| Total | 7 959 | 8 377 | 8 796 |
+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| Net realised oil price (USD/bbl) 1 | 75.2 | 70.0 | 68.5 |
+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| Volumes ('000 bbls) | | | |
+----------------------------------------------------+-------+-------+-------+
| Offtake of oil | 632 | 644 | 777 |
+----------------------------------------------------+-------+-------+-------+
| Production of oil | 655 | 685 | 669 |
+----------------------------------------------------+-------+-------+-------+
| Difference | (23) | (42) | 108 |
+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| Total production by asset (boepd) | Q2'24 | Q1'24 | Q2'23 |
+----------------------------------------------------+-------+-------+-------+
| Cricaré | 1 682 | 1 830 | 3 018 |
+----------------------------------------------------+-------+-------+-------+
| Norte Capixaba (Seacrest operated from 12/04/23) | 6 277 | 6 547 | 5 777 |
+----------------------------------------------------+-------+-------+-------+
| Total | 7 959 | 8 377 | 8 796 |
+----------------------------------------------------+-------+-------+-------+
| 1 From Q1'24, net realised oil price includes | | | |
| realised hedge gains/losses | | | |
+----------------------------------------------------+-------+-------+-------+

Infill Drilling

Drilling performance using the recently mobilized rig has exceeded the
Company's expectations. Using the new equipment, four infill wells have been
drilled to target depth within an average of 4.1 days each (versus ~5.0 days
planned). These wells are expected to commence production following a planned
period of steam injection and soaking. The Company previously disclosed that
the first two infill wells drilled at the Inhambu field are in production,
with initial production rates providing reassurance of reservoir
characteristics. A summary of the seven infill wells drilled to date is
provided in a table below.

Infill well program status:

+-----------------+------------------+---------------------------------------+
| Well | Spud | Status |
+-----------------+------------------+---------------------------------------+
| 7-IBU-70D-ES | November 2023 | Drilled to target depth; producing |
+-----------------+------------------+---------------------------------------+
| 7-IBU-71D-ES | December 2023 | Drilled to target depth; producing |
+-----------------+------------------+---------------------------------------+
| 7-IBU-72D-ES | January 2024 | Interrupted; for future sidetrack |
+-----------------+------------------+---------------------------------------+
| 7-IBU-74D-ES | June 2024 | Drilled to target depth |
+-----------------+------------------+---------------------------------------+
| 7-IBU-75D-ES | June 2024 | Drilled to target depth |
+-----------------+------------------+---------------------------------------+
| 7-IBU-73D-ES | July 2024 | Drilled to target depth |
+-----------------+------------------+---------------------------------------+
| 7-IBU-78D-ES | July 2024 | Drilled to target depth |
+-----------------+------------------+---------------------------------------+
| 7-IBU-88D-ES | July 2024 | Drilling to commence imminently |
+-----------------+------------------+---------------------------------------+

TNC subsea pipeline update

The work by Petrobras to repair and certify the northern subsea pipeline at
the Terminal Norte Capixaba is continuing with the analysis of previous tests.
In the meantime, marine work has been temporarily paused to allow the Company
to proceed with offtake operations. This work is expected to be resumed for
completion by late August and certification by mid-September.

Covenant waivers and financing plans

Based on the financial information available to the Company, the Company will
not be in a position to meet the required leverage ratio under the Group's
US$300m credit agreement and its US$80m Nordic bonds as at the end of the
second quarter of 2024. The Company is currently in discussions with the
lenders under the Group's credit agreement to obtain a leverage ratio covenant
waiver and anticipates engaging in similar discussions with holders of the
Nordic bonds in the near term. The obtaining of such waivers is dependent on
the negotiations with the lenders and bondholders, and no assurances can be
given as to the outcome or timing of this process. Further information will be
provided in due course.

Further, to enhance the Company's liquidity position, the Company has engaged
ABG Sundal Collier as its financial advisor in relation to a proposed future
equity raise, subject to market conditions. The proceeds of the proposed
equity raise are intended to fund the short-term working capital needs of the
Company. The Company is exploring a follow on offering of Brazilian Depositary
Receipts (BDRs) and a second listing in Brazil before year-end to address its
longer term capital plans.

Updated guidance

The Company will align the mobilisation of additional rigs with the proposed
future equity raises and the production ramp up from the new wells, and as a
result is reducing capex and production guidance for 2024. These changes,
summarized in the table below, primarily represent a change in timing;
assumptions on drilling time and well productivity underlying previous
guidance have been reaffirmed by recent operating results. Guidance on
production costs is unchanged. The Company is also retaining its long-term
strategy of more than tripling oil production by the end of 2027 through its
300-well infill drilling program, the largest onshore in Brazil.

Updated 2024 guidance:

+------------------------------+-----------------------+----------------------+
| | Previous | New |
| | | |
+------------------------------+-----------------------+----------------------+
| Average total production | 9 500-12 500 boepd | 8 300-8 600 boepd |
+------------------------------+-----------------------+----------------------+
| Average oil production | 8 500-11 000 bopd | 7 500-7 800 bopd |
+------------------------------+-----------------------+----------------------+
| Total production exit rate | 12 000-17 000 boepd | 9 500-12 500 boepd |
+------------------------------+-----------------------+----------------------+
| Oil production exit rate | 11 000-15 000 bopd | 8 500-11 000 bopd |
+------------------------------+-----------------------+----------------------+
| Wells drilled | 40-50 wells | 25-32 wells |
+------------------------------+-----------------------+----------------------+
| Capex | USD 70-100 million | USD 60-65 million |
+------------------------------+-----------------------+----------------------+

Other items

Seacrest Petroleo will release its quarterly results on 30 August at
approximately 07:00 CET
Further details will be released closer to the release date.

For further information, please contact:
Torgeir Dagsleth, CFO
Seacrest Petroleo Bermuda Limited
Tel. +47 958 91 970
E-mail: torgeir.dagsleth@seacrest.com

John de los Santos, Head of Investor Relations
Seacrest Petroleo Bermuda Limited
Tel. +44 79 4971 4756
E-mail: john.santos@seacrestpetroleo.com

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act and the Euronext Rule
Book part II. This announcement was published by Torgeir Dagsleth, Group CFO,
on 24 June 2024 at 17:50 CET.

About Seacrest Petroleo

Seacrest Petroleo is an independent oil and gas production company with an
integrated portfolio of onshore producing oil fields and export infrastructure
onshore in Espírito Santo, Brazil. The fields have estimated oil and gas in
place volumes of 1.2 billion barrels of oil equivalents and certified 2P
reserves of 144 million barrels of oil equivalents. The Company has exclusive
control over its infrastructure, continuously from field production to
offshore tanker loading terminal, allowing for cost-effective operations, and
enabling direct access to markets for its premium grade products. The Company
has offices in Bermuda, Norway and Brazil.

Notice to reader

Seacrest Petroleo's results presented in this press release are, unless
otherwise stated, based on IFRS and have not been externally reviewed and
audited. The financial information presented herein is based on internal
management accounts, is the responsibility of management and has not been
externally audited, reviewed or verified. Although we believe the information
to be reasonable, actual results may vary from the information contained above
and such variations could be material. As such, you should not place undue
reliance on this information. This information may not be indicative of the
actual results for the quarter or any future period.

This press release does not constitute an offer of securities for sale in the
United States or any other jurisdiction. Securities may not be offered or sold
in the United States absent registration with the United States Securities and
Exchange Commission or an exemption from registration. There will be no public
offering of any of the securities mentioned in this press release in the
United States.

Important information

Matters discussed in this press release may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "anticipate", "believes",
"continue", "estimate", "expect", "intends", "may", "should", "will" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although the Company believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies and other important
factors which are difficult or impossible to predict and are beyond its
control. Such risks, uncertainties, contingencies and other important factors
could cause actual events to differ materially from the expectations expressed
or implied in this release by such forward-looking statements. The
information, opinions and forward-looking statements contained in this release
speak only as at the date of this release and are subject to change without
notice. For a further discussion of risks and uncertainties relating to the
Company's business, see "Risk factors" in the Board of Directors' Report in
the Company's Annual Report and "Risks and uncertainty" in the Company's First
Quarter Report 2024.

This information has been submitted pursuant to the Securities Trading Act §
5-12 and MAR Article 19 no. 3. The information was submitted for publication
at 2024-07-24 17:50 CEST.

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624048_Seacrest Petroleo Bermuda Limited- Second quarter 2024 update.pdf