Q2 2023 trading and financial update
BW Energy, as the operator of the Dussafu Marin license in Gabon, provides an update today on its operations and development. The Company will publish financial figures for the second quarter and first half year of 2023 on Wednesday, 23 August 2023.
Gross production from the Tortue field averaged approximately 15,200 barrels of oil per day in the second quarter of 2023, amounting to a total gross production of approximately 1.4 million barrels of oil for the period. Production was positively impacted by first oil from the two initial Hibiscus / Ruche wells during the quarter and higher uptime on the BW Adolo after maintenance and development activities in the previous quarter.
BW Energy completed one lifting in the second quarter at a price of USD 75 per barrel. Production costs (excluding royalties) for the period was approximately USD 35 per barrel. The reduction compared to the previous quarter reflects the increased production.
BW Energy’s share of gross production was approximately 1.0 million barrels of oil, more than double of prior quarter. The net sold volume, which is the basis for revenue recognition in the financial statement, was approximately 1.0 million barrels including 65,000 barrels of Domestic Market Obligation (DMO) deliveries with an over-lift position of 312,000 barrels at the end of the period.
BW Energy had a cash balance of USD 233 million on 30 June 2023, compared to USD 166 million on 31 March 2023. The increase is primarily due to the payment received for the May lifting and drawdown on the reserves-based lending (RBL) facility. The Company had a total drawn balance of USD 300 million as of 30 June 2023 after successful completion of USD 100 million accordion committed by three additional banks.
At the start of the period, the Company had commodity price hedges for a remaining total volume of approximately 2 million barrels for 2023 and 2024, of which approximately 70% was for 2023. These were a combination of swaps and options that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised crude oil hedge gains in the amount of USD 3.4 million for the second quarter of which USD 0.7 million was realised.
In early April, the Company safely achieved first oil from the Hibiscus / Ruche Phase 1 development. This was followed by successful completion and production from two additional wells through June and July. Three Hibiscus wells in combination with commissioning of the second Gas Lift Compressor (GLC) have resulted in total gross production from the field reaching up to 30,000 barrels per day in late July. The Hibiscus / Ruche Phase 1 drilling campaign targets four Hibiscus Gamba and two Ruche Gamba wells which are expected to bring total oil production on the Dussafu Marin Permit up to approximately 40,000 barrels per day on a gross basis when all wells are completed and onstream. The wells are drilled by the Borr Norve jackup rig.
For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 91 11 78 76
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 428 mmboe at the start of 2023.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.