Energy SpA — Earnings Release 2021

Jul 28, 2021

BW Energy: Q2 2021 trading update

BW Energy: Q2 2021 trading update

Q2 2021 trading update

BW Energy today provides an update on the operation and development of the

Dussafu Marin license in Gabon. The Company will publish its financial report

for the first half of 2021 on Friday, 20 August.

Gross production from the Tortue field averaged approximately 10,500 barrels of

oil per day in the second quarter of 2021, amounting to a total gross production

of 0.95 million barrels of oil for the period. The decrease in production

compared to the first quarter of 2021 was mainly due to a planned maintenance

shutdown.

BW Energy completed two liftings in the quarter and realised an average price

of USD 69.8 per barrel. Production cost (excluding royalties) was approximately

USD 31 per barrel. The increase in production cost per barrel has been impacted

by the lower quarterly production. The overall production cost includes

approximately USD 1.5 million of costs related to the continued handling of the

COVID-19 pandemic through the period.

BW Energy's share of gross production was approximately 700,000 barrels of oil.

Net sold volume, which is the basis for revenue recognition in the financial

statement, was 1,140,000 barrels including approximately 97,000 barrels of

quarterly Domestic Market Obligation (DMO) deliveries, resulting in an over-

lift position of around 300,000 barrels at the end of the period.

BW Energy had a cash balance of USD 216 million at 30 June 2021, compared to USD

185 million at 31 March 2021. The increase is mainly due to a strong operating

cash flow reflecting a higher realised oil price. The company is well

capitalised for the upcoming investment activities with a robust balance sheet

and no external debt.

At the Tortue field, the drilling of the final horizontal production well, DTM-

7H, was successfully completed according to plan. High-quality oil-bearing sands

were encountered in line with prognosis. The work will now proceed with the

completion and tie-in of the two wells (DTM-6H and DTM-7H) with first oil

expected in early Q4 2021.

The Hibiscus North exploration well (DHBNM-1) was spudded earlier this week and

drilling activities are progressing as planned. The well has a geological

analogue to the Ruche Field, where the Gamba structure is the primary target.

The Company will give a more detailed presentation of the ongoing drilling

campaign at the upcoming Q2 2021 presentation scheduled for 20 August 2021.

For further information, please contact:

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

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 FPSOs to reduce time to first oil and cashflow

with lower investments than traditional offshore developments. The main assets

are 73.5% of the producing Dussafu Marine Permit offshore Gabon and a 95%

interest in the Maromba field in Brazil, both operated by the Company. Total net

2P+2C reserves were 242 million barrels at the start of 2021.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act..