BW Energy Ltd. · OSL:BWE
BW Energy — Q4 2020 Earnings Presentation
27 slides from BW Energy's earnings presentation, Feb 19, 2021
Slide 1: Q4 2020
Q4 2020 CEO Carl K. Arnet CFO Knut R. Sæthre COO Lin G. Espey 19 February 2021
Slide 2: Disclaimer
Disclaimer 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 performance an
Slide 3: Highlights
Highlights EBITDA of USD 28 million with two liftings completed • 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 the Hibiscus extension Capital raise of USD 75 million in Jan 2021 exploration well be
Slide 4: Zero-harm objective for people and environment
Zero-harm objective for people and environment Minimizing impact to environment Working for local society Sound governance • Full Year 2020: ‒ BWE: 0 LTIs ‒ BWE’s major subcontractors: 5 LTIs with 750k hours worked o 2 LTIs on FPSO Adolo (1 in January and 1 in December) 70-80% o 3 LTIs in one event
Slide 5: NSAI Reserves Update
NSAI Reserves Update Gross Dussafu Reserves (MMBBLS) YE2020 YE 2019 • Dussafu reserve update reflecting mainly adjustment Category 1P 2P 3P 1P 2P 3P for annual production rate of 5.2 million bbls Reserves 73.5 104.9 134.8 76.9 112.4 142.6 1C 2C 3C 1C 2C 3C • Hibiscus extension exploration well plann
Slide 6: Production outlook
Production outlook Gross production estimate bbls/day1 Net production estimate bbls/day1 80 000 80 000 70 000 Maromba 70 000 phase 2 60 000 60 000 Maromba phase 2 50 000 Maromba 50 000 phase 1 40 000 Maromba 40 000 phase 1 Hibiscus & Ruche 30 000 phase 2 30 000 Hibiscus/Ruche 20 000 20 000 phase 2 H
Slide 7: Dussafu
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Slide 8: Stable operations and restarting Tortue phase 2
Stable operations and restarting Tortue phase 2 • 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
Slide 9: Hibiscus development
Hibiscus development • Planned drilling campaign to start March/April 2021 • DHIBM-2 exploration well targeting Hibiscus Extension is the first well in the upcoming campaign • The well result will decide the location of the Hibiscus Alpha and has the potential to triple the reserves of the Hibiscus
Slide 10: Hibiscus/Ruche development program
Hibiscus/Ruche development program Q1 2023 Feed phase Basic and detailed engineering Rig reactivation Offshore Installation Topside Process Skids Manufacturing TPS integration (OI) refurbishment and modifications OI refurbishment and modifications, MC, pre-comm and comm Procurement Procurement and d
Slide 11: Dussafu production forecast
Dussafu production forecast Gross production profile kbbls/day 40 • 2020 production of 5.2 million bbls gross 38 Ruche Phase 2 ‒ Equal to an average ~14,100 bbls/day 31 Ruche Phase 1 ‒ Impact from COVID-19, maintenance and 26 Tortue compliance with OPEC reductions 18 21 18 ‒ Two liftings completed i
Slide 12: Exploration program
Exploration program Large inventory of exploration prospects and leads • Planning two exploration wells per year for the coming five years • Coming drilling program will focus on the Hibiscus area • Hibiscus Extension • One optional exploration well • Work ongoing to high grade the next targets for
Slide 13: Jasmine Alpha (former Balder) on HLV Osprey
Jasmine Alpha (former Balder) on HLV Osprey 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 • Maastrichtian sandstones are regionally proven reservoirs having produced more than 45 a billion of barrels of oil in the region 40 Upside • Independent assessment of primary 35 Maastrichtian sandstone P50 oil-in-place in 30 line with internal estimate Phase
Slide 17: Kudu
Kudu
Slide 18: Kudu Status
Kudu Status • BW Energy (Operator) has agreed a 95% working interest in 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 1
Slide 19: Q4 Financials
Q4 Financials
Slide 20: Income Statement – Q4 2020
Income Statement – Q4 2020 USD million Q4 2020 Q3 2020 Change Operating revenue 67.8 38.3 29.4 Operating expenses (39.5) (16.1) (23.4) EBITDA 28.3 22.2 6.1 • EBITDA increased by USD 6.1 million mainly due to 550 kbbls more sold Depreciation (13.1) (8.0) (5.1) Depreciation - ROU (7.6) (9.7) 2.1 • Dep
Slide 21: Income Statement - 2020
Income Statement - 2020 USD million 2020 2019 Change • 900k decrease in barrels sold in 2020 and an average Operating revenue 160.3 282.4 (122.1) negative price variance of USD 22 per barrel Operating expenses (73.3) (90.7) 17.4 EBITDA 87.0 191.7 (104.7) • Lower opex per barrel due to higher product
Slide 22: Balance Sheet
Balance Sheet ASSETS ASSETS Q42020 Q4 2020 Q32020 Q3 2020 Change Change Property and Property and other other equipment equipment 0.5 0.5 0.50.5 (0.0) (0.0) Right-of-useassets Right-of-use assets 226.5 226.5 225.0 225.0 1.51.5 E&P E&P tangible tangibleassets assets 239.0 239.0 237.3 237.3 1.71.7 Int
Slide 23: Investment in Assets (CAPEX)
Investment in Assets (CAPEX) USD million Dussafu Maromba Kudu 80 70 60 50 40 30 20 10 0 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20
Slide 24: 2020 Cash Flow
2020 Cash Flow Full Year 2020 24
Slide 25: Summary
Summary
Slide 26: Key value catalysts
Key value catalysts Dussafu Hibiscus / Ruche Maromba to Tortue Phase 2 development exploration first oil • Hibiscus Extension • Tortue Phase 2 Q3/Q4 2021: ~8,000 bbls/day peak • ANP approved FDP gross production • Seismic reprocessing • Target FID Q1 2022 evaluation • Hibiscus / Ruche development wi
Slide 27: Slide 27