BW Energy: Q2 2024 trading update

29 Jul 2024 07:30 CEST

BW Energy: Q2 2024 trading update

BW Energy will publish financial figures for the second quarter and first half
year of 2024 on Thursday, 29 August 2024.

Net production to BW Energy was 2.14 million barrels of oil in the second
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

Production from the Dussafu licence was 1.41 million barrels net to BW Energy in
the quarter, an average of 15,570 barrels of oil per day. Production was
impacted by planned annual maintenance of the FPSO BW Adolo as well as the
situation with defective ESPs (Electrical Submersible Pumps). The annual
scheduled maintenance resulted in a shutdown of 21 days during May and June.
Work included tank-refurbishments as well as work on the boiler system, the gas
lift compressors and other general systems improvements. BW Energy completed one
lifting in the quarter in May of ~ 734,000 barrels net at an average realised
price of USD 80 per barrel. Production costs (excluding royalties) for the
period were approximately USD 29 per barrel. This compares with first quarter
production costs of USD 23 per barrel, reflecting the lower production.

The net sold volume, which is the basis for revenue recognition in the financial
statement, was approximately 940,000 barrels, including 32,500 barrels of DMO
deliveries and 173,000 barrels of state profit oil, with an under-lift position
of 341,000 barrels at the end of the period.

In May, the Company made a substantial oil discovery with good reservoir quality
in the DHIBM-7P pilot well, appraising the northern flank of the Hibiscus field.
The preliminary evaluation indicates an increase in Hibiscus gross recoverable
reserves (mid-case) of 8-12 million barrels of oil. The well will be drilled as
a production well later in the present program.

Earlier in May, the DHBSM-2P pilot well confirmed a northern extension of the
Hibiscus South field with good reservoir quality, increasing reserve estimates
of Hibiscus South. The DHBSM-2H development well has completed drilling and has
been completed with the first conventional ESP system. The well was handed over
from drilling to production on 25 July and will now start production after hook-
up and testing.

BW Energy has extended the contract for the Borr Norve jack-up, and the delivery
of conventional ESP systems including spares has now been secured, allowing all
previously drilled and completed wells to be successively worked over and
completed with conventional ESP systems. The contract extension is also expected
to include the drilling of the Bourdon prospect.




GOLFINHO

Production from the Golfinho licence was 732,000 barrels net in the quarter, an
average of 8,040 barrels of oil per day. Production was impacted by reduced gas-
lift compressor up-time and lack of gas production from the GLF-28 well. GLF-28
has subsequently been successfully restarted after ROV intervention, and work is
underway to improve reliability. A 12-day shutdown is scheduled for August on
the FPSO Cidade de Vitória, to undertake compressor maintenance and other
activities to improve production stability.

A lifting of 505,000 barrels was completed in April with a realised price of USD
90 per barrel, followed by a lifting in June of 500,000 barrels with a realised
price of USD 83 per barrel. Remaining inventory was ~385,000 barrels at the end
of the period. The production cost, excluding royalties, averaged USD 48 per
barrel.




OTHER NEWS

In April, BW Energy executed a sale and leaseback agreement with a Minsheng
Financial Leasing Co entity (MSFL) for the MaBoMo production facility on the
Dussafu Licence. The transaction added USD 110 million of net liquidity for the
Company.

In June, the Company issued a USD 100 million, five-year senior unsecured bonds
with a coupon of 10% per annum. The bond placement met strong investor demand
across Nordic and international markets and was significantly oversubscribed. An
application has been made for the bonds to be listed on the Oslo Stock
Exchange.

In July, the Company signed a Letter Agreement with Reconnaissance Energy Africa
Ltd ("ReconAfrica") to acquire ~16.8 million shares and ~16.8 million warrants
for a total consideration of USD 16 million in ReconAfrica's announced equity
raise. By participating in the equity raise, BW Energy will also receive a 20%
non-operating interest in the onshore Petroleum Exploration License 73 ("PEL
73"). This enables the Company to expand its footprint in this strategically
important energy region.




HEDGING, LIQIDITY AND DEBT

BW Energy expects to recognise a net loss of USD 1.5 million in the second
quarter related to the hedging program, of which USD 0.8 million is
unrealised.

The Company had a cash balance of approximately USD 244 million on 30 June
2024, compared to USD 150 last quarter. The increase reflects the net impact
from oil sold in the period, proceeds from the MaBoMo sale leaseback, the bond
issue, repayment on the RBL facility and investments. Investments for the period
are primarily related the ongoing Hibiscus Ruche field development program.

The Company had a total drawn debt balance of USD 589.2 million on 30 June
including the MaBoMo lease financing, the bond debt, as well as a USD 70 million
principal repayment on the Dussafu RBL.



For further information, please contact:

Brice Morlot, CFO BW Energy, +33.7.81.11.41.16

ir@bwenergy.no (mailto:ir@bwenergy.no)



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.

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