Energy SpA

Earnings Release • Feb 28, 2024

BW Energy: Fourth Quarter and Full Year Results 2023

BW Energy: Fourth Quarter and Full Year Results 2023

FOURTH QUARTER AND FULL YEAR RESULTS 2023

HIGHLIGHTS

* Q4 EBITDA of USD 133.4 million and net profit of USD 80.2 million

* Full-year revenue of USD 0.5 billion (+83%) with EBITDA of USD 241.0 million

(+56%) and net profit of USD 81.0 million (+80%)

* Q4 gross production of 3.03 million barrels with 2.48 million net to BW

Energy

* Four liftings of 2.7 million barrels (net BWE) at average realised price of

USD ~82 per barrel

* Achieved combined production milestone of 50,000 operated barrels per day in

October

* Maintained a strong balance sheet with cash position of USD 194 million

* Completed acquisition of FPSO Cidade de Vitória

* Discovery of Hibiscus South

* MoU signed with Cosco Shipping Heavy Industry for FPSO BW Maromba upgrade

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

cluster offshore Brazil, reported EBITDA for the fourth quarter of 2023 of USD

133.4 million, up from USD 49.7 million in the third quarter of 2023, due to

increased production and liftings.

Gross production from the operated assets was ~33,000 barrels of oil per day in

the quarter, up 20% from the previous quarter. This includes a full quarter of

production from the Tortue and Hibiscus fields in the Dussafu licence (73.5%

working interest) and the Golfinho field (100% working interest) after assuming

ownership in late August.

Full-year 2023 production was approximately 7.6 million barrels of oil, up 97%

from 2022. Full-year EBITDA was USD 241 million (USD 154.2 million).

"We delivered strong production from Dussafu and Golfinho, which is reflected in

improved financial performance, making the fourth quarter and full year 2023 BW

Energy's best." said Carl K. Arnet, the CEO of BW Energy.?"Looking ahead, we

expect increased oil production and strong cash generation in 2024 with the

completion of the Hibiscus / Ruche phase 1 development program, including start-

up of production from Hibiscus South and Ruche fields and ESP replacements,

combined with a full-year contribution from Golfinho in Brazil."

DUSSAFU

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

price of USD 83 per barrel. BW Energy's share of gross production was

approximately 1.5 million barrels of oil. The net sold volume, which is the

basis for revenue recognition in the financial statements, was approximately

1.86 million barrels including 187,000 barrels of state profit oil with an over-

lift position of 228,000 barrels at the end of the period. Gross production from

the Dussafu licence averaged 22,500 barrels of oil per day in the?quarter,

amounting to total gross production of 2.07 million barrels of oil for the

period. Production was impacted by the previously communicated electrical issues

affecting the ESPs (electrical submersible pumps) on the Hibiscus field. Fourth

quarter production cost (excluding royalties) was approximately USD 28 per

barrel.

The Company has committed all necessary resources on identifying and resolving

the electrical integrity issues affecting the ESPs. Currently, the DHIBM-6H well

is producing on natural flow. The DHIBM-3H and DHIBM-4H wells are producing on

ESP, following completion of workovers and ESP changeout. Preparations are

ongoing for restarting DHIBM-5H well following a similar process. The programme

of diagnosis, repair and replacement of the ESPs is well underway.

GOLFINHO

Gross production from the Golfinho field averaged 10,400 barrels of oil per day

in the fourth quarter, amounting to a total production of 958,000 barrels in the

period. There were two liftings in the quarter at an average realised price of

USD 80 per barrel, with remaining inventory of approximately 325,000 barrels at

the end of the period. Fourth quarter production cost (excluding royalties) was

approximately USD 44 per barrel.

OTHER ITEMS

BW Energy had a cash balance of approximately USD 194.2 million on 31 December

2023, compared to USD 197.6 million on 30 September 2023. The change reflects

the net impact from oil sold in the period and investments primarily related to

the ongoing Hibiscus / Ruche development. The Company had a total drawn debt

balance of USD 380 million as of 31 December 2023 including the Golfinho

prepayment facility.

Total production net to BW Energy from Gabon and Brazil for 2024 is projected to

be between 10 and 12 million barrels, based on the current Hibiscus / Ruche

development plan and ESP work-over schedule. Full-year production cost

(excluding royalties) is expected to be USD 30 to 35 per barrel. Net capital

expenditures are expected in the range USD 250 to 300 million related to ongoing

drilling and project maturation activities.

DEVELOPMENT PLANS

The 2023 reserves update assessed 2P+2C reserves and resources of 580 million

barrels net to BW Energy. This includes 103.1 million barrels in the in the

Dussafu licence, reflecting adjustment for net annual production of 5.9 million

barrels and positive reserve adjustments on Dussafu, 148.2 million barrels in

Golfinho and Camarupim clusters and BM-ES-23, 138.8 million barrels in the

Maromba licence, and 190.3 million barrels oil equivalent contingent resources

in the Kudu licence. The increase mainly reflects the acquisition of the

Golfinho and Camarupim clusters and BM-ES-23.

The Hibiscus / Ruche Phase 1 drilling campaign comprises of eight wells. In

addition to the four Hibiscus wells and the one Hibiscus South well drilled to

date, the updated plan includes a fifth Hibiscus well, finalisation of the Ruche

well, and a Bourdon prospect test well.

In November, a substantial oil discovery was made in the Hibiscus South

satellite prospect (DHBSM-1). In early 2024, the Company returned to the well to

complete it as a production well. First oil is expected in March, less than five

months after discovery. The Hibiscus South structure is a separate accumulation

with a deeper oil-water contact than the nearby Hibiscus Field, increasing the

Company's reserve base.

The Hibiscus / Ruche drilling campaign has the potential to bring total oil

production on the Dussafu licence up to the FPSO capacity of approximately

40,000 barrels per day gross when all wells are on-stream.

In Brazil, BW Energy completed the acquisition the FPSO Cidade de Vitória from

Saipem in November. This will contribute to lower production cost per barrel.

Production from the Golfinho field continues to exceed initial expectations.

Preparations continued for two planned Golfinho infill wells (GLF-51 oil well

and GLF-50 gas well) which are expected to double production in 2027.

Also in Brazil, the Maromba development plan progressed with completion of the

revised concept expected in the second quarter of 2024. Total oil production

from Maromba at peak annual average is expected between 30-40,000 barrels of oil

per day. In October, BW Energy paid the first instalment for FPSO Polvo, renamed

BW Maromba, with the remaining USD 20 million instalment due in the second

quarter of 2024. The FPSO has been mobilised to the COSCO yard in China where it

is being prepared for upgrades. The final investment decision for the Maromba

development is subject to completion of the project financing.

In Namibia, BW Energy is progressing the revised development plan for the gas-

to-power project and analysing data from the 3D survey completed in May.

Interpretation of the initial data has enhanced the depositional model and de-

risked potential targets?with additional prospects identified, and the Company

has decided to start ordering long-lead items for a future exploration program.

OUTLOOK

BW Energy continually prioritises safety first with zero harm as an overriding

objective for people and the environment. BW Energy is substantially reducing

its carbon footprint by developing discovered oil and gas resources through

repurposing of existing production infrastructure.

BW Energy expects oil and gas to remain an important part of the global energy

mix with increased demand in decades to come and remains focused on realising

long-term value creation via its phased development strategy and investments in

high-return assets. The flexible investment strategy has proven robust for a

range of market scenarios and positions BW Energy to address both short- and

long-term opportunities to drive cash flows and earnings.

Energy prices remain at high levels despite a softening of macroeconomic drivers

during 2023 as geopolitical conflict, global supply chain challenges, inflation

and higher interest rates impacted global economic growth. Reduced OPEC

production and continued concerns for global energy supply are among factors

supporting current prices.

BW Energy expects to create significant value for its stakeholders going

forward. Short-term, the focus is on completing the Hibiscus / Ruche development

and resolving the ESP challenges to bring production up towards the FPSO

capacity, and optimising production at Golfinho in Brazil while preparing for

drilling of two new production wells in 2027. This should further support

significant positive cash flow at current oil price levels.

REPORTS AND PRESENTATION

BW Energy today published its annual report for the financial year ended 31

December 2023. BW Energy has also today published the Board-approved report on

payments to governments and the annual statement of reserves for the financial

year 2023. Please find all reports and the fourth-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 Knut R. Sæthre and COO Lin G. Espey at 14:00 CET.

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

on:

Viewer Registration ? Q4 2023   (https://events.webcast.no/viewer-

registration/cJFYrQsr/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:

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 Company's assets are 73.5% of the producing Dussafu Marin 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 and a 95%

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