Energy SpA

Earnings Release • Nov 15, 2024

Bw Energy: Third Quarter Results 2024

Bw Energy: Third Quarter Results 2024

BW ENERGY: THIRD QUARTER RESULTS 2024

HIGHLIGHTS

* Q3 EBITDA of USD 130 million and net profit of USD 48.0 million

* Q3 gross production of 2.9 mmbbls with 2.4 mmbbls net to BW Energy

* Record operational cash-flow of USD 144.9 million in the quarter

* Three liftings of 2.5 mmbbls (net BWE) at average realised price of USD

~82/bbl

* Highest quarterly production since inception from the Dussafu licence

* Currently producing over 40,000 bbls/day gross at Dussafu

* On track for completing ESP change-outs in Gabon by year-end with three

wells remaining, including DRM-3H

* Final agreements for Niosi Marin and Guduma Marin Exploration Blocks

Offshore Gabon

* Maintained a strong balance sheet with cash position of USD 209 million

BW Energy, operator of the Dussafu Marin licence in Gabon and the Golfinho

cluster offshore Brazil, reported EBITDA of USD 130 million for the third

quarter of 2024. This was up from USD 75.9 million in the previous quarter, due

to higher oil sales following record quarterly production in Gabon. The net

production from operated assets was 25,570 bbls/day. This includes the Tortue,

Hibiscus, and Hibiscus South fields in the Dussafu licence (73.5% working

interest or "WI") and the Golfinho field (100% WI).

"BW Energy delivers record quarterly production and cash-flow from operation in

the third quarter, supporting attractive appraisal, development, and field

optimisation programs across our growing asset base in Gabon, Brazil, and

Namibia," said Carl K. Arnet, the CEO of BW Energy. "We are also pleased to meet

our Dussafu production target of 40,000 barrels a day gross, well before year-

end, and following new low-cost, low-risk development wells and successful ESP

replacements. The ongoing drilling campaign has expanded our asset and reserves

base, and with further wells to complete and work-over, we are confident that we

can maintain production at FPSO BW Adolo capacity for longer."

Dussafu

BW Energy completed two liftings in the third quarter at an average realised

price of USD 82/bbl. BW Energy's net production was approximately 1.9 mmbbls of

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

financial statements, was approximately 2.0 mmbbls including 195,000 bbls of DMO

deliveries and 232,800 bbls of state profit oil with an under-lift position of

391,500 bbls at period-end.

Net production from the Dussafu licence averaged 20,150 bbls/day, supported by

the ESPs (electrical submersible pumps) on wells producing to the

MaBoMo facility. Third quarter production cost (excluding royalties) decreased

to USD 20.5/bbl from USD 29/bbl in the second quarter, which was impacted by

scheduled facility maintenance. Production cost was in line with the year-end

target level and reflects improved operational efficiency and increased

production.

In July, production started from the DHBSM-2H well on Hibiscus South, in August

the DHIBM-3H workover was completed, and in early October DHIBM-7H started

production, all with conventional ESPs. In late September, the DHBSM-1H ESP

failed as the last of the defective generation, with change-out completed and

production restarted mid-October. Workover of DHIBM-4H was completed in early

November, leaving three remaining wells scheduled for conventional ESP change-

out before year-end.

GOLFINHO

Net production from the Golfinho field averaged 5,400 bbls/day equivalent to a

total production of 498,900 bbls in the quarter. Production was impacted by a

planned maintenance shutdown on the FPSO Cidade de Vitória. Production

availability is set to improve in the fourth quarter following maintenance

completion on one gas- lift compressor.

One lifting was carried out in August of 487,000 bbls at a realised price of USD

81.7/bbl. Remaining inventory was approximately 340,700 bbls at the end of the

period. Production cost (excluding royalties) averaged USD 63.3/bbl barrel. This

compares with production costs of USD 48/bbl in the second quarter, primarily

due to lower production.

OTHER ITEMS

At 30 September 2024, BW Energy had a cash balance of USD 209 million, compared

to USD 244 million at end-June. The decrease reflects cash flow from operations,

debt repayment and investments including acquisition of shares in Reconnaissance

Energy Africa Ltd (ReconAfrica). The Company had a total drawn debt balance of

USD 556 million including the MaBoMo lease, the Dussafu RBL, the Golfinho

prepayment facility, and bond debt.

On 1 August, the Company expanded its position in Namibia through the

acquisition of a 6.6% shareholding plus share purchase warrants in ReconAfrica.

BW Energy also received a 20% non-operating interest in the onshore Petroleum

Exploration License 73 ("PEL 73") in Namibia.

Production guidance for 2024 is maintained at between 10 and 11 mmbbls net to BW

Energy. Full-year production cost (excluding royalties) is expected to be USD

30 to 32/bbl, in the lower end of the previous range due to higher production at

Dussafu. Expected net capital expenditures is unchanged at around USD 350

million.

DEVELOPMENT PLANS

BW Energy is in process of completing the DHIBM-5H well workover, bringing the

number of Hibiscus / Ruche Phase 1 producing wells to seven.

Following completing of the remaining two well workovers and ESP change-outs,

the Company will appraise the Bourdon prospect, targeting potential gross

recoverable reserves of ~30 million barrels in Gamba and Dentale formations.

At end-October, BW Energy signed production sharing contracts (PSCs) for the

Niosi Marin and Guduma Marin (formerly named G12-13 and H12-13) exploration

blocks which are adjacent to the Dussafu licence. BW Energy holds 37.5% WI in

both blocks, and is the operator of the blocks, which significantly expands the

resource base for infrastructure-led exploration. The PSCs have an eight-year

exploration period with option to extend for two more years. The partners have

committed to drilling one well on Niosi Marin and intend to carry out a 3D

seismic acquisition campaign.

In Brazil, the focus is on optimising production from the Golfinho field,

including stabilising FPSO performance and selected well workovers. Also in

Brazil, planning of the Maromba development, targeting low-risk barrels in an

oil rich area with multiple producing assets, progressed towards planned FID in

early 2025. The concept is based on the sustainable re-use of an FPSO and a

jack-up with drilling capacity and dry trees, providing an efficient development

with short pay-back time. Initial oil production from Maromba is expected at

around 50,000 bbls/day. The BW Maromba FPSO is at the COSCO yard in China in

preparation for upgrades.

In Namibia, BW Energy has sanctioned the drilling of an appraisal well targeting

the Kharas Prospect north-west on the Kudu formation. Long-lead items have been

secured and the Company is reviewing offers for rig capacity.  There is a close

dialogue with other operators in the Orange Basin on exploring common use

available resources. Development planning and concept selection for the Kudu

gas-to-power project also continued with relevant stakeholders.

REPORTS AND PRESENTATION

Please find the third-quarter earnings presentation attached. The reports are

also 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 Brice Morlot and COO Lin G. Espey at 15:00 CET.

You can follow the presentation via webcast with supporting slides, available

on:

VIEWER REGISTRATION ? Q3 2024 (https://events.webcast.no/viewer-

registration/wRYygbkD/register)

Call-in information:

Participants dial in numbers:

DK: +45 7876 8490

SE: +46 8 1241 0952

NO: +47 2195 6342

UK: +44 203 769 6819

US: +1 646-787-0157

Singapore: 65-3-1591097

France: 33-1-81221259

PIN code: 980877

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:

Brice Morlot, CFO BW Energy, +33.7.81.11.41.16

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

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

interest in the Kudu field in Namibia, all operated by BW Energy. In addition,

BW Energy holds approximately 6.6% of the common shares in Reconnaissance Energy

Africa Ltd. and a 20% non-operating interest in the onshore Petroleum

Exploration License 73 ("PEL 73") in Namibia. Total net 2P+2C reserves and

resources were 580 million barrels of oil equivalent at the start of 2024.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.