Q4 2023 trading update
BW Energy, as the operator of the Dussafu Marine licence in Gabon and the Golfinho cluster offshore Brazil, provides an update on its operations and development. The Company will publish financial figures for the fourth quarter and full year of 2023 on Wednesday, 28 February 2024.
Gross production from the operated assets was 3,031,000 barrels of oil in the fourth quarter of 2023. This includes production from the Tortue and Hibiscus fields in the Dussafu licence (73.5% working interest) and the first full quarter of production from the Golfinho field after assuming 100% ownership in August.
DUSSAFU
Gross production from the Dussafu licence averaged 22,500 barrels of oil per day in the quarter, amounting to a total gross production of 2,073,000 million barrels of oil for the period. Production was impacted by the previously communicated electrical issues affecting the ESPs’ (electrical submersible pumps) on the Hibiscus field. BW Energy completed two liftings in the quarter, one in October of approximately 960,000 barrels at a realised price of USD 90 per barrel and one in December of approximately 720,000 barrels at USD 75 per barrel.
BW Energy’s share of gross production was approximately 1.3 million barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was approximately 1.86 million barrels including 187,000 barrels of state profit oil with an over-lift position of 228,000 barrels at the end of the period.
The Company has committed all necessary resources on identifying and resolving the electrical integrity issues affecting the ESPs. Currently, the DHBM-6H well is producing on natural flow. The DHBM-4H well is producing on ESP following completion of a workover and ESP changeout, and preparations are ongoing for restarting DHBM-3H well following a similar process. The programme of diagnosis, repair and replacement of the ESPs is well underway.
GOLFINHO
Gross production from the Golfinho field averaged 10,400 barrels of oil per day in the fourth quarter, amounting to a total production of 958,000 barrels in the period. There were two liftings in the quarter, one in November of 521,500 barrels at a realised price of USD 84 per barrel and the second in December of 500,000 barrels at USD 77 per barrel, with remaining inventory of approximately 325,000 barrels at the end of the period
OTHER ITEMS
BW Energy had a cash balance of approximately USD 194 million on 31 December 2023, compared to USD 197.6 million on 30 September 2023. The decrease reflects the net impact from oil sold in the period and investments, primarily related the ongoing Hibiscus Ruche field development. The Company had a total drawn debt balance of USD 380 million as of 31 December 2023 including the Golfinho prepayment facility.
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 Company's assets are 73.5% of the producing Dussafu Marine licence offshore Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in the BM-ES-23 block in, a 95% interest in the Maromba field in Brazil and a 95% interest in the Kudu field in Namibia, all operated by BW Energy. Total net 2P+2C reserves and resources were 546 million barrels of oil equivalents at the start of 2023, when including the Golfinho Clusters.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act
