Energy SpA — M&A Activity 2022

Jun 23, 2022

BW Energy: Offer for Golfinho and Camarupim Clusters offshore Brazil approved by Petrobras

BW Energy: Offer for Golfinho and Camarupim Clusters offshore Brazil approved by Petrobras

Offer for Golfinho and Camarupim Clusters offshore Brazil approved by Petrobras

BW Energy has been notified that the Company's offer to acquire the Golfinho and

Camarupim Clusters offshore Brazil has been approved by the Petrobras Executive

Board. The acquisition is expected to add approximately 9,000 barrels of oil per

day of oil production from early 2023. The Golfinho Cluster has several proven

low risk in-field development opportunities with short lead times and

substantial potential long-term upside from proven gas accumulations.

The transaction is subject to fulfilment or waiver of conditions precedent with

an expected closing and effective date in the first quarter of 2023.

Highlights

* Acquisition of 100% operated working interest ("WI") in the Golfinho and

Camarupim clusters and 65% WI in the BM-ES-23 block

* USD 15 million in initial cash considerations and up to USD 60 million in

contingent payments linked to oil price, well operations and further

successful development of the acquired assets

* The Company's internal estimate is 38 million boe of proven recoverable

resources, predominantly oil, of which 19 million boe developed and

producing and 19 million boe undeveloped, defined infill opportunities

* The Company has identified a further 0.7 Tcf of recoverable gas

accumulations for potential future development

* Establishing a solid working relationship with Brazilian regulators will

unlock significant synergies ahead of the Maromba development

* The transaction will be financed through BW Energy's cash flow and existing

liquidity

"Golfinho offers material ongoing production and cashflow in Brazil at an

attractive price with significant upside potential in near-field exploration and

phased developments. It will diversify our production base, accelerate the

build-up of the local operating organisation and provide an established working

relationship with Brazilian stakeholders ahead of the Maromba development," said

Carl K. Arnet, the CEO of BW Energy.

The Golfinho Cluster is located at a water depth between 1,300 and 2,200 meters

in the Espírito Santo Basin. Adjacent is the BM-ES-23 exploration block which

holds the Brigadeiro gas and condensate discovery. The Camarupim Cluster is also

adjacent and located in water depths between 100 and 1,050 meters, comprising

the non-producing gas fields of Camarupim and Camarupim Norte.

Transaction details

BW Energy will acquire the 100% operated WI in the Golfinho and Camarupim

clusters and the 65% WI in the BM-ES-23 block for an initial cash consideration

to Petrobras of USD 3 million at signing and USD 12 million at closing.

Additionally, the Company has agreed contingent payments after closing of up to

USD 60 million tied to oil price and production volume (from current producing

assets and development of proven undeveloped resources/gas accumulations).

BW Energy will be the operator in all the concessions, with PTTEP (20% WI) and

Inpex (15% WI) as partners in the BM-ES-23 block.  BW Energy will, upon closing,

assume field abandonment liability for the FPSO, the subsea system and 13 wells,

of which Petrobras will share the cost of four wells.

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 FPSOs 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 considered inside information pursuant to the EU Market

Abuse Regulation and is subject to the disclosure requirements pursuant to

Section 5-12 the Norwegian Securities Trading Act. This stock exchange release

was published by Regine Andersen, IT and Communication Support, 24 June 2022