Energy SpA — Earnings Release 2021

May 20, 2021

BW Energy: First Quarter Results 2021

BW Energy: First Quarter Results 2021

HIGHLIGHTS

* Q1 EBITDA of USD 33.2 million and net profit of USD 7.8 million

* Maintained a strong balance sheet with no debt and cash position of USD

184.8 million

* Q1 gross production of 1.22 million barrels with 0.8 million barrels sold to

the Company

* Completed one lifting of 0.65 million barrels (net BWE) at a price of USD

66.7 per barrel

* Jack-up rig soon on location to drill the DTM-7H horizontal production well

at the Tortue field

* Progressing preparations for Hibiscus/Ruche development with reduced CAPEX

and time to first oil

* Managing and monitoring the COVID-19 pandemic and its impact on operations

EBITDA FOR THE FIRST QUARTER OF 2021 WAS 33.2 USD MILLION, UP FROM USD 28.3

MILLION IN THE FOURTH QUARTER 2020, MAINLY DUE TO A HIGHER REALISED OIL PRICE.

DUSSAFU PRODUCTION AVERAGED APPROXIMATELY 13,600 BARRELS OF OIL PER DAY FROM

FOUR WELLS, AMOUNTING TO A TOTAL GROSS PRODUCTION OF 1.22 MILLION BARRELS OF OIL

IN THE QUARTER. ONE LIFTING WAS COMPLETED TO BW ENERGY IN THE QUARTER, REALISING

AN AVERAGE PRICE OF USD 66.7 PER BARREL. PAYMENT FOR THE LIFTING WAS RECEIVED IN

APRIL 2021. THE COMPANY SOLD 0.8 MILLION BARRELS OF OIL NET IN THE QUARTER

INCLUDING APPROXIMATELY 97,000 BARRELS OF FIRST QUARTER DMO DELIVERIES AND AN

UNDER-LIFT POSITION OF AROUND 156,000 BARRELS AT PERIOD-END.

"WE ARE FULLY FOCUSED ON OUR VALUE-ENHANCING ACTIVITIES ON THE DUSSAFU MARIN

LICENSE LED NEAR TERM BY THE COMPLETION OF THE TORTUE PHASE 2 DEVELOPMENT WELLS

AND THE PROGRESSION OF THE HIBISCUS-RUCHE DEVELOPMENT PROJECT INCLUDING THE

SIGNIFICANT COST REDUCTIONS ENABLED BY THE JACK-UP RIG CONVERSION", COMMENTED

CARL K. ARNET, CEO OF BW ENERGY. "WE ARE DISAPPOINTED THAT THE HIBISCUS

EXTENSION APPRAISAL WELL WAS UNSUCCESSFUL, BUT WE HAVE GATHERED VALUABLE DATA TO

REFINE OUR SUBSURFACE MODELS. THE KNOWLEDGE GAINED ALLOWS US TO FURTHER HIGH-

GRADE OUR EXTENSIVE INVENTORY OF ATTRACTIVE EXPLORATION PROSPECTS WITH HIBISCUS

NORTH BEING THE FIRST IN LINE FOR DRILLING LATER THIS YEAR."

FIRST QUARTER PRODUCTION COST (EXCLUDING ROYALTIES) WAS USD 23 PER BARREL,

INCLUDING APPROXIMATELY USD 1.0 MILLION OF ADDITIONAL COVID-19 RELATED COSTS. BW

ADOLO HAD A SIX-DAY SCHEDULED MAINTENANCE SHUTDOWN IN MAY, WHICH WILL IMPACT THE

SECOND QUARTER PRODUCTION.

TOTAL DUSSAFU PRODUCTION FOR 2021 IS PROJECTED TO BE APPROXIMATELY 12,900 TO

15,600 BARRELS PER DAY GROSS, OR BETWEEN 4.7 TO 5.7 MILLION BARRELS IN TOTAL FOR

THE YEAR, BASED ON FIRST OIL FROM THE REMAINING TORTUE PHASE 2 AT END OF THE

THIRD OR EARLY IN THE FOURTH QUARTER. FULL YEAR PRODUCTION COST (EXCLUDING

ROYALTIES) IS EXPECTED BETWEEN USD 21 TO 24 PER BARREL. THE CONTINUING COVID-19

PANDEMIC HAS SO FAR NOT IMPACTED DAY TO DAY OPERATIONS BUT IT IS AFFECTING

PLANNED MODIFICATION WORK TO AMONG OTHERS THE GAS LIFT SYSTEM, AND COULD

POTENTIALLY ALSO INFLUENCE THE HOOK-UP OF THE LAST TWO TORTUE PHASE 2 WELLS. AS

A CONSEQUENCE, THE UNCERTAINTY IN OUR PRODUCTION FORECAST HAS INCREASED.

CASH BALANCE WAS USD 184.8 MILLION AT 31 MARCH 2021, COMPARED TO USD 120 MILLION

AT 31 DECEMBER 2020. ON 20 JANUARY 2021, BW ENERGY COMPLETED A PRIVATE PLACEMENT

RAISING GROSS PROCEEDS OF APPROXIMATELY USD 75 MILLION, ENSURING THAT BW ENERGY

HAS CAPITAL TO DEPLOY TOWARDS ACCRETIVE PROJECTS AND CAPTURE SIGNIFICANT VALUE

CREATION GOING FORWARD.

DEVELOPMENT PLANS

THE HIBISCUS EXTENSION APPRAISAL WELL, DHIBM-2, HAD THE PRIMARY OBJECTIVE OF

TESTING THE NORTH-WESTERN EXTENSION OF THE GAMBA SANDSTONE RESERVOIR OF THE

HIBISCUS FIELD, DISCOVERED IN 2019. THE WELL RESULTS PROVED TO BE MORE

REPRESENTATIVE OF AN EARLIER SEISMIC INTERPRETATION REFERRED TO AS THE MUPALE

PROSPECT, WITH THE OUTCOME DEMONSTRATING A STRUCTURAL SEPARATION BETWEEN THE TWO

AREAS WITH NO INDICATIONS OF HYDROCARBONS IN THE GAMBA OR IN THE SECONDARY

TARGETS IN THE DEEPER DENTALE FORMATION. THE DATA ACQUIRED FROM THE DHIBM-2 WELL

WILL NOW BE ANALYSED AND INTEGRATED INTO THE LARGER DUSSAFU MARIN MODEL. THE

WELL WAS DRILLED TO A TOTAL DEPTH OF 3,536M AND WAS THEN PLUGGED AND ABANDONED.

THE EXISTING HIBISCUS 2P GROSS RECOVERABLE RESERVES OF 46.1 MILLION BARRELS

ESTABLISHED BY THE DHIBM-1 WELL, AND ITS APPRAISAL SIDE-TRACK DRILLED IN 2019,

ARE NOT AFFECTED AND REMAIN THE BASIS FOR THE ONGOING HIBISCUS/RUCHE DEVELOPMENT

PROJECT.

FOLLOWING THE DHIBM-2 WELL, THE RIG MOVED TO DRILL THE HORIZONTAL PRODUCTION

WELL, DTM-7H, AT THE TORTUE FIELD, WHERE SPUDDING WILL SOON COMMENCE. THE RIG

WILL SUBSEQUENTLY MOVE TO DRILL THE HIBISCUS NORTH PROSPECT, LOCATED

APPROXIMATELY 6 KM NORTH-NORTHEAST OF THE DHIBM-1 WELL. THE HIBISCUS ALPHA

CONVERSION PROJECT IS PROGRESSING AHEAD OF PLAN WITH PLACEMENT UNDERWAY FOR ALL

MAJOR CONTRACTS AND FIRST OIL TARGET IN Q4 2022, COMPARED TO PREVIOUSLY Q1 2023.

THE MAROMBA PROJECT CONTINUES TO PROGRESS TOWARDS THE ENVIRONMENTAL APPROVAL AND

OPTIMISATION OF THE FIELD DEVELOPMENT PLAN WITH RESPECT TO INVESTMENT,

OPERATIONAL COSTS, AND SCHEDULE. THE ENVIRONMENTAL BASE-LINE STUDY WAS COMPLETED

EARLIER THIS YEAR. A FINAL INVESTMENT DECISION IS PLANNED BY THE FIRST QUARTER

OF 2022.

IN JANUARY 2021, BW ENERGY ANNOUNCED A FARM-IN AND CARRY AGREEMENT WITH NAMCOR

TO INCREASE ITS WORKING INTEREST IN THE KUDU GAS FIELD TO 95%, IN LINE WITH

PREVIOUSLY DISCLOSED INTENTIONS. THE AGREEMENT HAS NOW BEEN APPROVED BY THE

NAMIBIAN COMPETITION COMMISSION WITH GOVERNMENT APPROVAL STILL PENDING. BW

ENERGY IS CONTINUING ITS EFFORTS TO DEVELOP THIS RESOURCE COMMERCIALLY.

PLEASE SEE THE ATTACHED Q1 PRESENTATION. THE EARNINGS TABLES ARE AVAILABLE AT:

WWW.BWENERGY.NO/INVESTORS/REPORTS-AND-PRESENTATIONS

(http://www.bwenergy.no/investors/reports-and-presentations).

BW ENERGY WILL TODAY HOLD A CONFERENCE CALL FOLLOWED BY A Q&A HOSTED BY CEO CARL

K. ARNET, CFO KNUT R. SÆTHRE AND COO LIN G. ESPEY AT 14:00 CEST.

CONFERENCE CALL INFORMATION:

TO DIAL IN TO THE CONFERENCE CALL WHERE THE SECOND QUARTER RESULTS AND Q&A WILL

BE HOSTED, PLEASE DIAL IN TO ONE OF THE FOLLOWING NUMBERS:

NORWAY: +47 2350 0236

FRANCE: +33 170 750 775

SINGAPORE: +65 6408 5768

UK: +44 3333 009 266

US: +1 833 5268 395

YOU CAN ALSO FOLLOW THE PRESENTATION VIA WEBCAST WITH SUPPORTING SLIDES,

AVAILABLE ON:

HTTPS://STREAMS.EVENTCDN.NET/BWE/BW-ENERGY-Q1-2021-PRESENTATION/

(https://streams.eventcdn.net/bwe/bw-energy-q1-2021-presentation/)

PLEASE NOTE, THAT IF YOU FOLLOW THE WEBCAST VIA THE ABOVE URL, YOU WILL

EXPERIENCE A 30 SECOND DELAY COMPARED TO THE MAIN CONFERENCE CALL. THE WEB PAGE

WORKS BEST IN AN UPDATED BROWSER - CHROME IS RECOMMENDED.

FOR FURTHER INFORMATION, PLEASE CONTACT:

KNUT R. SÆTHRE, CFO BW ENERGY, +47 91 11 78 76

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 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 CONSIDERED INSIDE INFORMATION PURSUANT TO THE EU MARKET

ABUSE REGULATION AND IS SUBJECT TO THE DISCLOSURE REQUIREMENTS PURSUANT TO

SECTION 5-12 THE NORWEGIAN SECURITIES TRADING ACT. THIS STOCK EXCHANGE RELEASE

WAS PUBLISHED BY ERIC STOUSLAND, CORPORATE FINANCE, BW OFFSHORE, ON 20 MAY AT

07.30 CEST.