BW Energy today provides an update on the operations and development of the Dussafu Marin license in Gabon. The Company will publish financial figures for the fourth quarter and the annual report for 2022 on Tuesday, 28 February 2022.
Gross production from the Tortue field averaged approximately 9,600 barrels of oil per day in the fourth quarter of 2022, amounting to a total gross production of approximately 883,000 barrels of oil for the period. Production was impacted by planned field development and modification activities. Full-year production was 10,600 barrels of oil per day equalling a total gross production of approximately 3.9 million barrels of oil.
BW Energy completed one lifting in the fourth quarter at a price of USD 73 per barrel reflecting a lower realised oil price compared to Dated Brent due to temporary oversupply of Russian crude in the market and high transportation costs. Production cost (excluding royalties) for the period was approximately USD 40 per barrel due to the lower production. Average production cost for the year 2022 was USD 36 per barrel.
BW Energy’s share of gross production was approximately 649,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 745,000 barrels including 65,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of 76,000 barrels at the end of the period.
BW Energy had a cash balance of USD 210 million on 31 December 2022, compared to USD 186 million at 30 September 2022. The increase is due to the payment received for the December lifting and a drawdown on the Company’s reserves-based lending (RBL) facility, offset by continued investments in the Hibiscus / Ruche development project.
At the start of the period, the Company had commodity price hedges for a remaining total volume of 0.8 million barrels for 2022 and 2023, of which approximately 15% was for 2022. These were a combination of swaps and zero-cost collars that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised crude oil hedge losses in the amount of USD 5.2 million for the fourth quarter, of which USD 4.7 million were unrealised.
The drilling campaign at the Hibiscus field is progressing according to plan and in line with the schedule for first oil from the Hibiscus / Ruche development towards the end of the first quarter of 2023.
For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76
[email protected]
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 240 million barrels at the start of 2022.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
BW Energy today provides an update on the operations and development of the Dussafu Marin license in Gabon. The Company will publish financial figures for the third quarter of 2022 on Thursday, 17 November. Gross production from the Tortue field averaged approximately 10,400 barrels of oil per day in the third quarter of 2022, amounting to a total gross production of approximately 960,000 barrels of oil for the period in line with expectations.
BW Energy completed one lifting in the quarter at a price of USD 101 per barrel. Production cost (excluding royalties) was approximately USD 36 per barrel. The overall production cost includes approximately USD 1 million related handling of the COVID-19 pandemic in the period.
BW Energy’s share of gross production was approximately 700,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 715,000 barrels including 32,500 barrels of quarterly Domestic Market Obligation (DMO) deliveries with an under-lift position of 185,000 barrels at the end of the period.
BW Energy had a cash balance of USD 186 million at 30 September 2022, compared to USD 123 million at 30 June 2022. The increase is due to the payment received for the August lifting and a drawdown on the Company’s reserve-based lending (RBL) facility, partly offset by continued investments in the Hibiscus / Ruche development project.
At the start of the period, the Company had commodity price hedges for a remaining total volume of one million barrels for 2022 and 2023, of which 37% is for 2022. These were a combination of swaps and zerocost collars that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised realised crude oil hedge losses in the amount of USD 2.9 million and unrealised gains in the amount of USD 14.9 million for the third quarter.
In late September, the BW MaBoMo offshore production facility arrived in Gabon on schedule. The production facility has since been installed on site and preparations are underway for future drilling operations and for the tie-in of the export pipeline to the BW Adolo FPSO and the BW MaBoMo. Twenty kilometres of the subsea pipeline has now been installed, with final connections planned for year-end.
Separately, the drilling rig is on schedule to spud the first production well planned in January. This in in line with the plan for first oil from the Hibiscus / Ruche development towards the end of the first quarter of 2023.
For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76
[email protected]
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 240 million barrels at the start of 2022.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act