Energy SpA — Investor Presentation 2020

Sep 16, 2020

Pareto Securities` Energy Conference

Knut R. Sæthre, CFO

16 September 2020

Disclaimer

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Agenda

• 1. The Company
• 1. Assets
• 1. Economics
• 1. Summary

Focused strategy to unlock assets and create value

• Diversified asset portfolio offshore West Africa and Brazil
• Full year production of 15,000-16,000 bbls/day (gross) from Dussafu
• Net certified 2P reserves of 83 million barrels and 2C resources of 164 million barrels (100% oil)
• Significant upside potential in prospect portfolio

4

• Operational and financial robustness to move when the time is right

• (1): Management estimates (2): Netherland, Sewell & Associates, Inc. (NSAI) certified net 2P reserves and 2C resources (Dussafu per 30/09/19), based on 73.5% working interest in Dussafu and 95% in Maromba

Year-to-date highlights

• Protecting employees and partners and ensuring safe uninterrupted operations amid COVID-19 pandemic
• Successfully completed Initial Public Offering, raising net USD 121 million
• Improved financial flexibility with repayment of all external debt
• EBITDA of USD 36.5 million in 1H 2020 and cash position of USD 127.6 million
• Gross production of 2.5 million bbls in 1H 2020 with 1.5 million bbls net to BW Energy
• First oil from initial two Tortue Phase 2 wells, completion of two additional wells pending easing of COVID-19 restrictions
• Continuous focus on de-risking and optimising economics for development projects

The aframax tanker Minerva Olympia loading oil from BW Adolo

Zero-harm objective for people and environment

Minimizing impact to environment Working for local society Sound governance

• Resource efficient, phased development strategy based on reusing existing offshore assets to and produce from already proven reservoirs
• Committed to supporting local communities in areas of operations
• Proactively handling COVID-19 together with partners and authorities

70-80%

Estimated GHG emission-savings from redeployment of existing FPSO1 vs. newbuild

1) FPSO BW Adolo case study based on Co2 emission tied to steel consumption and operations

Key near-term value catalysts

Dussafu

exploration Tortue Phase 2 Hibiscus/Ruche development

Maromba to first oil

• Seismic reprocessing evaluation
• Up to three additional exploration wells planned from late 2020
• Tortue Phase 2 end Q2 2021: +8-9,000 gross bbls/day peak
• Hibiscus/Ruche development restart planned for Q4 2020
• Ruche is expected to lift Dussafu production to nameplate capacity on FPSO (~45,000 bbls/day)
• ANP approved FDP in Q3 2020
• Target FID 2021
• First oil 2024

Additional Value Levers

• FPSO tank expansions
• Reduced unit well cost
• FPSO Adolo de-bottlenecking additional 30,000 bbls/day
• Satellite field developments
• Development cost reductions identified (path to FID 15% IRR at sub-USD 40 per bbl realised oil price)
• Identified new FPSO candidate
• Reduced royalty rates

Production outlook

Gross production estimate bbls/day1 Net entitlement production estimate bbls/day1

24,7 40 50

9 1) Internal management estimates as of July 2020, based on gross weighted production for 2020, excluding capex. (Depreciation ~ USD 10.50 per bbl)

5,2 5,4 5,6

USD 35 USD 45 USD 55 Opex FPSO Cost ADMEX Royalty / Tax FCF

11,5 11,5 11,5

1,2 1,2 1,2

7,6 9,8 11,9

12,1

• Full year OPEX expectation of USD 17-18 per barrel
• OPEX expected to decline to approximately USD 10 per bbl at nameplate capacity

Operational free cash flow 2020E1

USD per bbl

0

10

20

30

60

9,4

Hibiscus field growth potential

• Recent results of reprocessed seismic suggest an increase in the Greater Hibiscus oil-in-place volumes by potentially ~3.0x
• Interpretation indicates Hibiscus South and Mupale as a single structure
• Verification could give ~155 million barrels recoverable
  • ‒ Assuming 55% recovery factor
  • ‒ 280 million barrels oil-in-place
  • ‒ Current NSAI reserves: 45 million barrels
• Planned new well to confirm interpretation
• Potential to increase FPSO production capacity

Hibiscus Structure Map 2020 – Reprocessed Seismic

Hibiscus/Ruche – determining driver for further Dussafu growth

• Ruche restart planned when COVID-19 restrictions are eased to allow efficient project execution
• Progressing alternative field development plan to reduce CAPEX and time to first oil
  • ‒ Alternative includes jack-up conversion instead of building a new wellhead platform
  • ‒ Potential to reduce cash break-even to approximately USD 25 per barrel Brent and yield 15% IRR at <USD 30 per bbl Brent
  • ‒ Development plan includes Phases 1 and 2, based on already proven reserves
• Hibiscus/Ruche development restart currently assumed in Q4 2020 based on revised CAPEX and schedule

Significant remaining exploration potential

Large inventory of prospects and leads Dussafu discoveries and drilling prospects

Discoveries	Target reservoir	Million bbl P50 contingent resources1
Walt Whitman Moubenga	Gamba Dentale	13 6
Exploration prospects	Target reservoir	P50 prospective resources1
Hibiscus North	Gamba	28
Bourdon (Prospect B)	Gamba & Dentale	50
Mupale	Gamba	40
Walt Whitman NW	Gamba	7
WW 'String of Pearls'	Gamba	16
Prospect 18	Gamba & Dentale	15
Prospect A	Gamba & Dentale	39
Tortue SE	Gamba	17
Hibiscus South	Gamba	14
Espadon	Gamba & Dentale	7
Moubenga Upthrown	Gamba	18
Prospect 19	Gamba	17
Prospect 4	Gamba	13
Total prospects	Gamba & Dentale	281

Progressing Maromba towards FID

• Field Development Plan for Maromba approved by ANP
• Project team progressing project towards environmental approval (IBAMA)
  • ‒ Site and soil survey planned for Q4 2020
• Review of project and field economics is ongoing
  • ‒ Optimise CAPEX and OPEX
  • ‒ Reduce time from FID to first oil
  • ‒ Identified new FPSO candidate
  • ‒ Continuing to pursue marginal field status to obtain royalty reductions
• Path to FID for phase 1 with a realised oil price of sub-USD 40 per bbl for 15% IRR including remaining acquisition milestones

Investment Highlights

Differentiated strategy	• Unlocking value from fields proven by other oil companies • Access to existing FPSOs enables phased, fast-track development at lower cost
Unique competence and experience	• Experienced management and extensive resources • Long operating history in all major offshore basins
Proven E&P capabilities	• 18-month development at Dussafu with ~98% uptime since first oil • Demonstrated deal-making and exploration capabilities to add resources
Capital efficient growth	• Path to increased Dussafu production and first oil from Maromba at low break evens • Growing pipeline of new opportunities
Robust capital structure	• Largely self-financed: strong cash flow and planned RBL • Cash position of USD 127.6 million as of June 30, 2020 • Access to capital markets as needed