Energy SpA — Earnings Release 2021

Jan 26, 2022

BW Energy: Q4 2021 trading and financial update

BW Energy: Q4 2021 trading and financial update

BW Energy: Q4 2021 trading and financial update

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

Dussafu Marin license in Gabon. The Company will publish financial figures for

the fourth quarter and the annual report for 2021 on Thursday, 24 February 2022.

Gross production from the Tortue field averaged approximately 12,250 barrels of

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

of approximately 1.1 million barrels of oil for the period. The increase in

production compared to the third quarter of 2021 was mainly due to the start of

production from the two new Tortue phase-2 wells. The previously communicated

shortage of gas lifting capacity continued to impact operations during the

quarter, with stable production from four of the six Tortue wells.

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

USD 79 per barrel. Production cost (excluding royalties) was approximately

USD 27 per barrel. The overall production cost includes approximately USD 1.0

million of costs related to the continued handling of the COVID-19 pandemic in

the period.

BW Energy's share of gross production was approximately 830,000 barrels of oil.

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

statement, was 1,170,000 barrels including 130,000 barrels of quarterly Domestic

Market Obligation (DMO) deliveries with an over-lift position of  107,000

barrels at the end of the period.

BW Energy had a cash balance of USD 150 million at 31 December 2021, compared to

USD 170 million at 30 September 2021. The decrease was mainly due to investments

related to the Hibiscus/Ruche project activities. The payment for the second

lifting, which was completed in late December, was not received by year-end.

In late January, BW Adolo commenced a 12-day planned annual maintenance

shutdown, which will impact production in the first quarter of 2022. As part of

this shutdown, the company is exploring interim measures to improve gas lift

capacity until the installation of a permanent compressor, which is expected in

the fourth quarter 2022.

BW Energy has scheduled a webcast for 24 February 2022 where the company will

provide a comprehensive presentation of operations and ongoing development

projects.

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 production facilities 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.