BW Energy: Start of production from Tortue Phase 2 and Q3 2021 trading update

Start of production from Tortue Phase 2 and Q3 2021 trading update

BW Energy today provides an update on the operations and development of the Dussafu Marin license in Gabon. As part of the Tortue Phase 2 field development, hook-up of the final two production wells DTM-6H and DTM-7H has been completed and handover to production operations made. The Company is pleased to announce that the Gamba well DTM-7H was successfully brought online as of 19 October. The second well, DTM-6H in the Dentale formation, is scheduled to come onstream in the coming days. Current production prior to the two new production wells is around 11,500 barrels of oil per day.

The Tortue development consists of six production wells, tied back to the FPSO BW Adolo, Completion of the DTM-6H and DTM-7H wells were suspended last year due to the COVID-19 pandemic. This concludes the Tortue Phase 2 project with zero Health, Safety, Security & Environment (HSSE) incidents.

“The Tortue Phase 2 development was completed below budget and within the revised timeframe. We look forward to the production growth following first oil from the two wells. Operationally we will now focus on stabilisation of the production and wrapping up the project activities”, said Carl K. Arnet, the CEO of BW Energy.

Gross production from the Tortue field averaged approximately 9,000 barrels of oil per day in the third quarter of 2021, amounting to a total gross production of 0.8 million barrels of oil for the period. The decrease in production compared to the second quarter of 2021 was mainly due to plant shutdowns and temporary operational issues. The previously communicated shortage of gas lifting capacity also impacted production. A nitrogen generation unit has been installed on BW Adolo which has significantly improved production efficiency.

As previously guided, there were no BW Energy liftings in the quarter. Production cost (excluding royalties) was approximately USD 36 per barrel. While the absolute production cost remained stable, the unit cost expressed reflects the lower production rate realised in the third quarter. The overall production cost includes approximately USD 1.5 million of costs related to the continued handling of the COVID-19 pandemic through the period. Third quarter revenue is expected to reflect approximately 195,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of around 203,000 barrels at the end of the period.

BW Energy had a cash balance of USD 170 million at 30 September 2021, compared to USD 216 million at 30 June 2021. The decrease is mainly due to investment activities related to Tortue Phase 2, progress on the Hibiscus/Ruche project, as well as completing the exploration drilling campaign in Dussafu.

BW Energy has scheduled a webcast for 23 November 2021 where the company will provide a comprehensive presentation of operations and ongoing development projects.

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 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 242 million barrels at the start of 2021.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.