Bw Energy Ltd.

Earnings Release • Dec 12, 2025

BW Energy: Strategic entry offshore Angola through acquisition of 10% in Block 14 and 5% in Block 14k

BW Energy: Strategic entry offshore Angola through acquisition of 10% in Block 14 and 5% in Block 14k

BW Energy has in a consortium with Maurel & Prom signed an agreement to acquire

a combined 20% non-operated interest in Block 14 and 10% in Block 14K offshore

Angola from Azule Energy. Within this transaction, BW Energy's net share will be

10% in Block 14 and 5% in Block 14K, providing a strategic foothold in Angola

aligned with the Company's long-term regional growth strategy.

"The entry to Angola is a key step in BW Energy's West Africa growth strategy

and provides further diversification of our resource base. Firstly, we see clear

upsides beyond the current production in Block 14. And, more importantly, we

build a position for potential future operated development opportunities in the

country," said Carl K. Arnet, the CEO of BW Energy. "Angola is a mature

hydrocarbon basin with an active M&A market and strong political support for the

energy sector. We see attractive opportunities for BW Energy to apply our

strategy of developing proven reserves and stranded assets through the re-use of

existing energy infrastructure to unlock significant value over time."

Block 14 is a mature deepwater asset comprising nine producing fields, while

Block 14K is a tie-back to the main block. The asset is operated by Chevron, and

the licence currently runs to 2038. Gross production is approximately 40 kbopd,

with net to BW Energy at 4 kbopd. Current producing reserves are estimated at

9.3 mmbbls net to BW Energy, with several identified opportunities to further

increase recoverable volumes. Abandonment and decommissioning costs are covered

by existing provisions.

The acquisitions are part of a joint transaction with Maurel & Prom, which will

acquire equal ownership interests as BW Energy in the two licences. BW Energy

values Maurel & Prom as a strong and experienced partner in this process.

Completion of the transaction remains subject to regulatory approvals and

customary closing conditions, with closing expected by mid-2026.

The transaction carries a base cash consideration of USD 97.5 million net to BW

Energy. A deposit of USD 6 million is payable immediately, with the balance to

be settled at completion. The final amount will be subject to customary

adjustments reflecting cash flows between the effective date of 1 January 2025

and the closing date.

In addition, contingent payments of up to USD 57.5 million net to BW Energy may

become payable upon the occurrence of specific events, including:

* Brent prices exceeding certain thresholds over the 2026-2028 period

* Achievement of defined production milestones associated with the PKBB

development

For further information, please contact:

Martin Seland Simensen, VP Investor Relations

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, a 95%

interest in the Kudu field in Namibia, all operated by BW Energy. In addition,

BW Energy holds approximately 7% of the common shares in Reconnaissance Energy

Africa Ltd. and a 20% non-operating interest in the onshore Petroleum

Exploration Licence 73 ("PEL 73") in Namibia. Total net 2P+2C reserves and

resources were 599 million barrels of oil equivalent at the start of 2025.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act