Energy SpA — Earnings Release 2023

Oct 26, 2023

BW Energy: Q3 2023 trading and financial update

BW Energy: Q3 2023 trading and financial update

Q3 2023 trading and financial update

BW Energy, as the operator of the Dussafu Marine licence in Gabon and the

Golfinho cluster offshore Brazil, provides an update on its operations and

development. The Company will publish financial figures for the third quarter of

2023 on Thursday, 16 November 2023.

Gross production from the operated assets was 27,400 barrels of oil per day in

the?third quarter 2023. This included a full quarter of production from the

Tortue and Hibiscus fields in the Dussafu licence (73.5% working interest) and

production from the Golfinho field after assuming 100% ownership on 28

August.

INCREASED PRODUCTION IN GABON

Gross production from the Dussafu licence averaged approximately 23,200 barrels

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

approximately 2.14 million barrels of oil for the period. Production was

positively impacted by first oil from two additional Hibiscus wells during the

quarter and start-up of the additional gas lift compressor on the FPSO BW Adolo.

BW Energy completed one lifting in the third quarter at a price of USD 79 per

barrel. Production costs (excluding royalties) for the period was approximately

US 28 per barrel. The reduction, compared to the previous quarter, reflects

mainly the increased production.

BW Energy's share of gross production was approximately 1.57 million barrels of

oil, an increase of over 50% from the prior quarter. The net sold volume, which

is the basis for revenue recognition in the financial statement, was

approximately 1 million barrels including 32,500 barrels of Domestic Market

Obligation (DMO) deliveries with an under-lift position of 116,000 barrels at

the end of the period.

CLOSING OF THE GOLFINHO ACQUISITION IN BRAZIL

Gross production from the Golfinho field averaged approximately 11,200 barrels

of oil per day from the period 28 August to 30 September, amounting to a total

production of 381.700 barrels in the period. There were no liftings in the

quarter. The first Golfinho lifting of about 500,000 barrels of oil Is expected

to occur in November. Production cost (excluding royalties) averaged USD 48 per

barrel for the period.

OTHER ITEMS

BW Energy had a cash balance of USD 197.6 million on 30 September 2023, compared

to USD 233 million on 30 June 2023. The decrease is primarily due to ongoing

development of Hibiscus Ruche and the Golfinho closing, offset by, draw-down on

the USD 80 million Golfinho prepayment facility. The Company had a total drawn

debt balance of USD 380 million as of 30 September 2023 including the prepayment

facility.

At the start of the period, the Company had commodity price hedges for a

remaining total volume of approximately 1.56 million barrels for 2023, 2024 and

2025, of which approximately 46% was for 2023. These were a combination of swaps

and options that will allow for future cash flow stability for ongoing

development projects. BW Energy has recognised crude oil hedge losses in the

amount of USD 9.1 million for the third quarter of which approximately USD 0.3

million were realised.

In July and September, the Company safely commenced production from the third

and fourth well, respectively, of the Hibiscus / Ruche Phase 1 development.

Challenges with the ESP (electronical submersible pump) on the DHIBM-3H and -4H

wells temporarily impacted production. The ESPs were re-started in mid-October

and the Company is working to stabilise production from both wells. The current

total Dussafu gross production, with all the Tortue and Hibiscus wells in

operation, is approximately 35,000 barrels of oil per day.

At the Ruche field, drilling- and completion activities on the DRM-3H production

well was temporarily suspended pending an alternative final casing design after

encountering oil in the Gamba reservoir. The Company expects to return to

complete this well later in the drilling campaign when additional casing

material is received.

To maximize the use of the contracted drilling rig, the Dussafu partners have

initiated drilling of the Hibiscus South exploration prospect (DHBSM-1), located

about 5 kilometers southwest of the BW MaBoMo production platform. If DHBSM-1

contains commercial volumes, the plan is to return to the well and complete it

as a production well in early 2024. The ongoing Hibiscus / Ruche drilling

campaign has the potential to bring total oil production on the Dussafu license

up to approximately 40,000 barrels per day gross when all wells are completed

and on-stream.

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

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 in, a 95% interest in the Maromba field in Brazil and a 95%

interest in the Kudu field in Namibia, all operated by BW Energy. Total net

2P+2C reserves and resources were 546 million barrels of oil equivalents at the

start of 2023, when including the Golfinho Clusters.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act