Energy SpA — Earnings Release 2022

Jan 18, 2023

BW Energy: Q4 2022 trading and financial update

BW Energy: Q4 2022 trading and financial update

Q4 2022 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 2022 on Tuesday, 28 February 2022.

Gross production from the Tortue field averaged approximately 9,600 barrels of

oil per day in the fourth quarter of 2022, amounting to a total gross production

of approximately 883,000 barrels of oil for the period. Production was impacted

by planned field development and modification activities. Full-year production

was 10,600 barrels of oil per day equalling a total gross production of

approximately 3.9 million barrels of oil.

BW Energy completed one lifting in the fourth quarter at a price of USD 73 per

barrel reflecting a lower realised oil price compared to Dated Brent due to

temporary oversupply of Russian crude in the market and high transportation

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

USD 40 per barrel due to the lower production. Average production cost for the

year 2022 was USD 36 per barrel.

BW Energy's share of gross production was approximately 649,000 barrels of oil.

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

statement, was 745,000 barrels including 65,000 barrels of quarterly Domestic

Market Obligation (DMO) deliveries with an under-lift position of 76,000 barrels

at the end of the period.

BW Energy had a cash balance of USD 210 million on 31 December 2022, compared to

USD 186 million at 30 September 2022. The increase is due to the payment

received for the December lifting and a drawdown on the Company's reserves-based

lending (RBL) facility, offset by continued investments in the Hibiscus / Ruche

development project.

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

remaining total volume of 0.8 million barrels for 2022 and 2023, of which

approximately 15% was for 2022. These were a combination of swaps and zero-cost

collars 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

5.2 million for the fourth quarter, of which USD 4.7 million were unrealised.

The drilling campaign at the Hibiscus field is progressing according to plan and

in line with the schedule for first oil from the Hibiscus / Ruche development

towards the end of the first quarter of 2023.

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 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 240 million barrels at the start of 2022.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.