Seacrest Petroleo Bermuda Limited: Third Quarter 2024 Operational and Financing Update

30 Oct 2024 22:20 CET

Rio de Janeiro, Brazil/Hamilton, Bermuda, 30 October 2024: Seacrest Petroleo
Bermuda Limited ("Seacrest Petroleo" or the "Company") provides its third
quarter 2024 operational and a financing update.

Third quarter 2024 operating update

During the third quarter, the Company drilled ten wells on time and within
budget, with production results consistent with estimates underlying the 2023
Competent Person's Report. Drilling averaged 4.2 days per well. The Company
has released the PetroReconcavo rig and has tendered for fast mobilization and
demobilization drilling rigs to reduce overall drilling cycle time. The table
below shows progress made in the drilling program prior to the capex pause.

+-----------------+-------------------+--------------------------------------+
| Well | Spud | Status |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-70D-ES | November 2023 | Drilled; producing |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-71D-ES | December 2023 | Drilled; producing |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-72D-ES | January 2024 | Interrupted; for future sidetrack |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-74D-ES | June 2024 | Drilled; producing |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-75D-ES | June 2024 | Drilled; producing |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-73D-ES | July 2024 | Drilled; producing |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-78D-ES | July 2024 | Drilled; soaking finalized |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-88D-ES | July 2024 | Drilled; injecting |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-77D-ES | July 2024 | Drilled; injecting |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-79D-ES | August 2024 | Drilled; not yet completed |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-89D-ES | August 2024 | Drilled; not yet completed |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-81D-ES | August 2024 | Drilled; not yet completed |
+-----------------+-------------------+--------------------------------------+
| 7-IBU-82D-ES | September 2024 | Drilled; not yet completed |
+-----------------+-------------------+--------------------------------------+

Net production of oil and natural gas averaged 6 843 boepd in the third
quarter of 2024, 14% lower than the production in the second quarter of 2024,
and 26% lower than the production in the third quarter of 2023. Third quarter
production does not yet include material contribution from newly drilled
infill wells. As previously announced on 11 July, the Brazilian National
Agency for Petroleum, Natural Gas and Biofuels (Agência Nacional do Petróleo,
Gás Natural e Biocombustíveis) (ANP) required the Company to construct
modifications on truck loading sites which resulted in a temporary reduction
of production. The approval process for these sites to return to operation
took longer than initially expected and 420 bbls per day remains offline.

The volume of oil produced in the third quarter was 564 kbbls. The volume of
oil sold in the quarter amounted to 686 kbbls, resulting in an overlift
position. Seacrest Petroleo obtained an average net realized oil price of USD
60.7 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) | Q3'24 | Q2'24 | Q3'23 |
+----------------------------------------------------+-------+-------+-------+
| Oil | 6 135 | 7 197 | 8 376 |
+----------------------------------------------------+-------+-------+-------+
| Gas | 708 | 762 | 828 |
+----------------------------------------------------+-------+-------+-------+
| Total | 6 843 | 7 959 | 9 204 |
+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| Net realised oil price (USD/bbl) 1 | 60.7 | 74.7 | 79.2 |
+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| Volumes ('000 bbls) | | | |
+----------------------------------------------------+-------+-------+-------+
| Offtake of oil | 686 | 632 | 640 |
+----------------------------------------------------+-------+-------+-------+
| Production of oil | 564 | 655 | 771 |
+----------------------------------------------------+-------+-------+-------+
| Difference | 122 | (23) | (131) |
+----------------------------------------------------+-------+-------+-------+
| | | | |
| | | | |
+----------------------------------------------------+-------+-------+-------+
| Total production by asset (boepd) | Q3'24 | Q2'24 | Q3'23 |
+----------------------------------------------------+-------+-------+-------+
| Cricaré | 1 249 | 1 682 | 3 208 |
+----------------------------------------------------+-------+-------+-------+
| Norte Capixaba (Seacrest operated from 12/04/23) | 5 594 | 6 277 | 5 996 |
+----------------------------------------------------+-------+-------+-------+
| Total | 6 843 | 7 959 | 9 204 |
+----------------------------------------------------+-------+-------+-------+
| 1 From Q1'24, net realised oil price includes | | | |
| realised hedge gains/losses | | | |
+----------------------------------------------------+-------+-------+-------+

On 16 October 2024, there was a leak of steam with some oil emulsion in one of
the Company's newly drilled wells in the Inhambú Field. The well was not
producing oil at the time of the incident. The well had a high water cut at
the time of the leak, and as a result the discharged fluid was mainly composed
of water. There was no harm to any individuals, and cleanup at the site is
substantially complete. The Espírito Santo state regulator Instituto Estadual
de Meio Ambiente e Recursos Hídricos (IEMA) noted in a report published on its
website that part of the affected area was waterproofed before the leak, and
that the remaining part was vegetation that only suffered light damage.

The Company is in advanced discussions with Petrobras concerning the Company
taking over the completion of the repair of the subsea pipelines at the
Terminal Norte Capixaba and has received quotes totaling US$2.5 million for
the relevant materials and services, and a proposed timeline of 90 days to
complete the repairs.

Financing updates

The Company has today signed an indicative term sheet with Trafigura for a
US$40 million prepayment facility (the "Facility"). The Facility is in the
form of a prepayment for cargoes of oil to be sold by Group companies to
Trafigura under an offtake agreement to be entered into around the same time.
Loans made under the Facility will mature on 31 December 2025. The Facility is
subject to conditions precedent, including, among others, execution of
definitive agreements and Trafigura becoming a party to the Group's
intercreditor agreement with the lenders under its US$300 million credit
facility.

In addition, following the Company's announcement made on 4 September 2024,
the Company today signed a binding term sheet with MBD Partners SA ("MBD") for
tranched minority non-operating interests in the Company's business (the
"Farm-out"). Under the terms of the Farm-out, Seacrest Petroleo would sell
non-operating working interests totaling 25% plus an optional 7.5% via
ownership interests in newly issued shares of Seacrest Petroleo Cricare
Bermuda Limited, Seacrest Petroleo's wholly owned subsidiary ("SPCBL"), for up
to US$217 million, plus a further tranche directly at the asset level, subject
to the parties' mutual agreement. Following completion of the Farm-out, MBD
will have the option to exchange 100% of its SPCBL shares for a 25%
non-operating, direct working interest in the Company's assets, including the
Cricaré Cluster, the Norte Capixaba Cluster, the Terminal Norte Capixaba, and
other related infrastructure and equipment. The completion of the Farm-out is
subject to conditions precedent, including among others, execution of
definitive agreements, and approval by the respective parties financiers and
regulatory approvals.

Erik Tiller, Chairman of Seacrest Petroleo, said: "We are pleased that after a
six month process we have secured signed term sheets to provide, subject to
completion, equity and working capital financing for the Company's business.
The transactions we are announcing today reflect the confidence our major
investors and partners have in our business, and we look forward to working
with all stakeholders to complete the transactions."

Seacrest Petroleo will release its quarterly results and publish its financial
report for the third quarter on 20 November 2024 at approximately 07:00 CET.

Further details will be released closer to the release date.

For further information, please contact:

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 subject to the disclosure requirements in article 19 of
the Regulation EU 596/2014 (the EU Market Abuse Regulation) and section 5-12
of the Norwegian Securities Trading Act.

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.

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.

This information is subject to disclosure under the Norwegian Securities
Trading Act, §5-12. The information was submitted for publication at
2024-10-30 22:20 CET.

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