BW Energy Ltd. · OSL:BWE
BW Energy — Q4 2020 Earnings Presentation
27 slides from BW Energy's earnings presentation, Feb 19, 2021
Slide 1: BW Energy Q4 2020
ONY BW ENERGY Q4 2020 CEO Carl K. Arnet CFO Knut R. Seethre COO Lin G. Espey 19 February 2021
Slide 2: Disclaimer
Disclaimer x BweNeRGy This Presentation has been produced by BW Energy Limited exclusively for information purposes. This presentation may not be redistributed, in whole or in part, to any other person This document contains certain forward-looking statements relating to the business, financial perf
Slide 3: Highlights
Highlights EBITDA of USD 28 million with two liftings completed Capital raise of USD 75 million in Jan 2021 Resumed project execution activities & BW ENERGY Completed two liftings of 1.1 Mbbls (net BWE) at a price of USD ~46 per barrel Average daily production of ~13.5kbbls Preparing for drilling of
Slide 4: Minimizing impact to environment, working for local society, sound governance
Minimizingimpact to environment Working for local society Sound governance * Full Year 2020: — BWE: OLTIls — BWE’s major subcontractors: 5 LTIs with 750k hours worked 7 @) - 8 @) % o 2LTls on FPSO Adolo (1 in January and 1 in December) o 3LTls in one event on the SBM Installer in March 2020 during T
Slide 5: NSAI Reserves Update
NSAI Reserves Update Yer ow enerey Gross Dussafu Reserves (MMBBLS) * Dussafu reserve update reflecting mainly adjustment Category ~~. ole for annual production rate of 5.2 million bbls 1P 2P 3P 1P 2P 3P Reserves 73.5 104.9 134.8 76.9 112.4 142.6 1c 3c 2c 1c 2c 3c + Hibiscus extension exploration wel
Slide 6: Production outlook
Production outlook YR swenerer Gross production estimate bbls/day’ Net production estimate bbls/day’ 80 000 80.000 70 000 70 000 60 000 60 000 50 000 Maromba 50 000 phase 1 Maromba 40 000 40 000 phase 1 30 000 30 000 20 000 Hibiscus & Ruche phase 20 000 Hibiscus/Ruche phase 1 10 000 Tortue ph 182 10
Slide 7: Dussafu
Dussafu
Slide 8: Q4 gross production 1.24 million bbls, equal to ~13,500 bbls/day
Q4 gross production 1.24 million bbls, equal to ~13,500 bbls/day — Completed annual maintenance program in October 2020 Q4 OPEX at USD ~23 per barrel including USD 2.2 million of additional COVID costs Full year OPEX of USD 20 per barrel — Impact from extended COVID costs and restrictions — Producti
Slide 9: Hibiscus development
Hibiscus development Walt Whitman NW ro Hibiscus N Rt up: ‘Walt Whitman eo - Lan srsy NB Fields & Discoveriesin GREEN Hibi Sy Prospects in BLACK cape Possible Offshore Installation (Ol) Locations he Bourdon 7 Prospect B Gamba & BW ENERGY Planned drilling campaign to start March/April 2021 DHIBM-2 ex
Slide 10: Hibiscus/Ruche development program
Hibiscus/Ruche development program x BweNeRGy Feed phase Basic and detailed engineering Rig reactivation Offshore Installation (Ol) refurbishment and modifications TPS integration command comm Procurement Sail away and field installation Oldeliveryto offshore location J Drill and complete 1:'well [T
Slide 11: Dussafu production forecast
Dussafu production forecast Ty ew eversy Gross production profile kbbis/day «0 * 2020 production of 5.2 million bbls gross 38 suche Phase 2 — Equal to an average ~14,100 bbls/day 31 ™ Ruche Phase 1 — Impact from COVID-19, maintenance and 26 wTortue compliance with OPEC reductions at — Twoliftings co
Slide 12: Exploration program
Exploration program Large inventory of exploration prospects and leads Mot Ipthrown RUCHE EEA AREA Walt Whitman NW Walt Whitman n WW String of Pearls es —s Ruche NE Prospect 19 |< Gamba Prospects, | Gamba Leads J Dentale Prospects = Dentale Leads 12 & BW ENERGY Planning two exploration wells per yea
Slide 13: Jasmine Alpha (former Balder) on HLV Osprey
Jasmine Alpha (former Balder) on HLV Osprey Ty ew eversy 13
Slide 14: Maromba
Maromba
Slide 15: Maromba - Southern Campos Basin - progress
Maromba - Southern Campos Basin - progress * Field Development Plan approved by ANP + Progressing project towards environmental approval (IBAMA) — Site and soil survey planned for Q1 2021 * Optimising field CAPEX and OPEX « Reducing time from execution start to first oil * Pursuing tax reductions by
Slide 16: Maromba Long Term Production Potential
Maromba Long Term Production Potential Ry sw evensy Maastrichtian sandstones are regionally proven reservoirs having produced more than a billion of barrels of oil in the region Independent assessment of primary 35 Maastrichtian sandstone P50 oil-in-place in line with internal estimate — NSAI oil-in
Slide 17: Kudu
Kudu
Slide 18: Kudu Status
Kudu Status BW Energy (Operator) has agreed a 95% working interestin the license; awaiting government approval — NAMCOR (government oil entity) will hold 5% carried interest after approval Kudu gas is trapped in aeolian sandstones at 4,400 meters depth Reservoir located 130 km from land and 170 m wa
Slide 19: Q4 Financials
Q4 Financials
Slide 20: Income Statement — Q4 2020
Income Statement — Q4 2020 Ty ew eversy USD million Q4 2020 Q3 2020 Operating revenue 67.8 38.3 29.4 Operating expenses (39.5) (16.1) (23.4) EBITDA 28.3 22.2 61 ° EBITDAincreased by USD 6.1 million mainly due to 550 kbbls more sold Depreciation (13.1) (8.0) (5.1) ree ag: Depreciation - ROU (78) (2.7
Slide 21: Income Statement - 2020
Income Statement - 2020 USD million 2020 2019 Change Operating revenue 160.3 282.4 (122.1) Operating expenses (73.3) (90.7) 17.4 EBITDA 87.0 191.7 (104.7) Depreciation (34.7) (48.2) 13.5 Depreciation - ROU (35.5) (25.9) (9.7) Amortisation (0.6) (0.6) - Impairment (13.2) (13.2) Gain/(loss) sale of as
Slide 22: Balance Sheet
Balance Sheet ASSETS Q4 2020 Q3 2020 Change Property and other equipment 05 05 (0.0) Right-of-use assets 226.5 225.0 15 E&P tangible assets 239.0 237.3 1.7 Intangible assets 110.2 107.1 3.2 Other non-current assets 3.3 75 (4.2) Total non-current assets 579.5 577.4 2.2 Inventories 8.4 18.3 (9.9) Trad
Slide 23: Investment in Assets (CAPEX)
Investment in Assets (CAPEX) USD million 80 70 60 50 40 10 ie) Q117 Q217 Q3"17 = Dussafu Q4417 Q118 Q28 Q318 = Maromba Q418 Q1'19 Q2'19 Q3'19 = Kudu Q419 Q1'20 Q2'20 =z 93:20 Q4'20
Slide 24: 2020 Cash Flow
2020 Cash Flow 24 = 300 250 200 150 100 50 81 Cash Jan 01-2020 121 Issues shared net proceeds Full Year 2020 Operating cash flow (74) Net investments Other Financing Activities Payment of lease liabilities & BW ENERGY Cash Dec 31-2020
Slide 25: Summary
Summary
Slide 26: Key value catalysts
Key value catalysts YR swenerer Dussafu Hibiscus / Ruche Maromba to 26 Hibiscus Extension Seismic reprocessing evaluation Up to 10 additional exploration wells planned from 2021 until 2026 Tortue Phase 2 Q3/Q4 2021: ~8,000 bbls/day peak + ANP approved FDP gross production + Target FID Q1 2022 Hibisc
Slide 27: Slide 27