Energy SpA — Earnings Release 2023

Jul 27, 2023

BW Energy: Q2 2023 trading and financial update

BW Energy: Q2 2023 trading and financial update

Q2 2023 trading and financial update

BW Energy, as the operator of the Dussafu Marin license in Gabon, provides an

update today on its operations and development. The Company will publish

financial figures for the second quarter and first half year of 2023 on

Wednesday, 23 August 2023.

Gross production from the Tortue field averaged approximately 15,200 barrels of

oil per day in the?second quarter?of 2023, amounting to a total gross production

of approximately 1.4 million barrels of oil for the period. Production was

positively impacted by first oil from the two initial Hibiscus / Ruche wells

during the quarter and higher uptime on the BW Adolo after maintenance and

development activities in the previous quarter.

BW Energy completed one lifting in the second quarter at a price of USD 75 per

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

USD 35 per barrel. The reduction compared to the previous quarter reflects the

increased production.

BW Energy's share of gross production was approximately 1.0 million barrels of

oil, more than double of prior quarter. The net sold volume, which is the basis

for revenue recognition in the financial statement, was approximately 1.0

million barrels including 65,000 barrels of Domestic Market Obligation (DMO)

deliveries with an over-lift position of 312,000 barrels at the end of the

period.

BW Energy had a cash balance of USD 233 million on 30 June 2023, compared to USD

166 million on 31 March 2023. The increase is primarily due to the payment

received for the May lifting and drawdown on the reserves-based lending (RBL)

facility.  The Company had a total drawn balance of USD 300 million as of 30

June 2023 after successful completion of USD 100 million accordion committed by

three additional banks.

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

remaining total volume of approximately 2 million barrels for 2023 and 2024, of

which approximately 70% 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 gains in the amount of USD

3.4 million for the second quarter of which USD 0.7 million was realised.

In early April, the Company safely achieved first oil from the Hibiscus / Ruche

Phase 1 development. This was followed by successful completion and production

from two additional wells through June and July. Three Hibiscus wells in

combination with commissioning of the second Gas Lift Compressor (GLC) have

resulted in total gross production from the field reaching up to 30,000 barrels

per day in late July.  The Hibiscus / Ruche Phase 1 drilling campaign targets

four Hibiscus Gamba and two Ruche Gamba wells which are expected to bring total

oil production on the Dussafu Marin Permit up to approximately 40,000 barrels

per day on a gross basis when all wells are completed and onstream. The wells

are drilled by the Borr Norve jackup rig.

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 428 mmboe at the start of 2023.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.