BW Energy Ltd. · OSL:BWE
BW Energy — Q2 2022 Earnings Presentation
28 slides from BW Energy's earnings presentation, Aug 25, 2022
Slide 1: Q2 2022
Q2 2022 Carl K. Arnet, CEO Knut R. Sæthre, CFO Lin G. Espey, COO 25 August 2022
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 • H1 2022 EBITDA of USD 71 million and net Agreed to acquire Golfinho and Camarupim Clusters with profit of USD 19.2 million FPSO to add ~9,000 barrels of oil per day from early 2023 • Strong operational cashflow and balance sheet with cash position of USD 123 million • Q2 EBITDA of USD 5
Slide 4: Zero-harm objective for people and environment
Zero-harm objective for people and environment Minimizing impact to Working for local society Sound governance environment • COVID-19 still affecting general project execution, equipment deliveries, FPSO operations and offshore modification work • No recorded LTIs in Q2 • BW MaBoMo (formerly Hibiscu
Slide 5: Production outlook
Production outlook Net production estimate bbls/day1 100 000 Maromba Phase 2 Maromba Phase 1 75 000 Hibiscus / Ruche Phase 2 Hibiscus / Ruche Phase 1 Tortue 50 000 25 000 0 2018 2019 2020 2021 2022E 2023E 2024E 2025E 2026E 2027E 2028E 73.5% WI in the Dussafu licence 95.0% WI in the Maromba licence 5
Slide 6: Dussafu
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Slide 7: Production at Dussafu
Production at Dussafu • Q2 gross production 975,000 barrels, equal to ~10,700 bbls/day ‒ Q2 OPEX at USD ~35 per barrel includes COVID-19 costs and reflects reduced production • Additional gas lift capacity required to reach full potential ‒ Periodic use of nitrogen for intermittent supplement gas li
Slide 8: Dussafu production forecast
Dussafu production forecast • 2022 production estimate ~4.0 million barrels Gross production profile kbbls/day ‒ Additional gas lift capacity expected in 1Q 2023 50 ‒ Expected production increase from Hibiscus / Ruche Phase 1 Hibiscus / Ruche Phase 2 40 Hibiscus / Ruche Phase 1 in 1Q 2023 Tortue 30
Slide 9: BW MaBoMo conversion completed with production unit enroute to Gabon
BW MaBoMo conversion completed with production unit enroute to Gabon • Converted jack-up rig under mobilisation on heavy-lift vessel following conversion at Lamprell Yard in Dubai • Strong HSE performance with zero LTIs on ~1.9 million man-hours • Scheduled arrival in Gabon end-September 9
Slide 10: Hibiscus / Ruche on track for first oil at end Q1 2023
Hibiscus / Ruche on track for first oil at end Q1 2023 • Hibiscus and Ruche fields estimated to add ~30,000 bbls/day of production with all wells in operation during 2023 ‒ Expected late delivery of drilling rig due to third-party options and BOP change ‒ Initial drilling campaign targeting four Hib
Slide 11: Maromba
Maromba
Slide 12: Unlocking material production in the Campos Basin
Unlocking material production in the Campos Basin • 2P gross reserves of 105 million barrels1 ‒ Additional 2C gross reserves of 41 million barrels1 • Development plan approved by ANP and IBAMA environmental approval expected in due course • Final investment decision subject to completion of project
Slide 13: Kudu
Kudu
Slide 14: Confirmed high potential for the Kudu license
Confirmed high potential for the Kudu license • MOU negotiations progressing with power off-takers for the Kudu Gas to Power project • Recent oil and gas discoveries made by TotalEnergies and Shell, confirm the presence of a major new hydrocarbon play offshore southern Namibia • BW Energy has acquir
Slide 15: Golfinho
Golfinho
Slide 16: Highlights
Highlights • Agreement to acquire 100% operated working interest (“WI”) in Golfinho and Camarupim clusters and 65% WI in Brigadeiro (BM-ES-23) • Expected to add production of ~9 kboepd/day from closing planned in Q1 2023, an estimated 38 million boe1 of proven recoverable resources and 0.7 Tcf1 of r
Slide 17: Established production with clear path for growth
Established production with clear path for growth • 6 producing oil wells • Two defined in-fill well projects (GLF- 31 gas well and BWE Infill oil well) with additional potential and optimisations to be evaluated after handover • Acquisition includes gas export pipeline with access to onshore gas pr
Slide 18: Growth in production, reserves and resource base
Growth in production, reserves and resource base BWE Current Status Acquired assets and potential BWE Post Acquisition developments Six producing wells, high-quality API 28-44 crude 8,500 bbls/day1 17,500 bbls/day2 +106% Net oil production Gas export pipeline and access to gas process facility Net o
Slide 19: Significant resource with upside
Significant resource with upside Gross resources1 Planned gross production1 (kboepd) Producing (oil) 38 Undeveloped (oil) Undeveloped (gas) 20 +154 Planned mmboe Future 14 9 11 8 8 116 7 7 2023 2024 2025 2026 2027 2028 2029 2030 • In-fill oil well opportunities expected to add production in 2026 • E
Slide 20: Phased payment structure
Phased payment structure Field transaction FPSO transaction • Field acquisition cost up to USD 75 million • FPSO cost of USD 73 million ‒ USD 3 million at signing ‒ USD 25 million at closing ‒ USD 12 million at closing expected in Q1 2023 ‒ USD 13 million at FPSO take over expected in Q1 2023 ‒ Up t
Slide 21: Q2 Financials
Q2 Financials
Slide 22: Income Statement
Income Statement • EBITDA decreased due to no liftings in Q2 • Decrease due to lower revenue • Increase due to Polvo 22
Slide 23: Cash Flow
Cash Flow • USD 114 million payment for March lifting received in April • RBL facility finalised ‒ Up to USD 300 million international facility ‒ Initially to finance the development of the Dussafu license ‒ Six year tenor ‒ Syndicate of five international banks 23
Slide 24: Balance Sheet
Balance Sheet • Polvo purchase partly offset by depreciation • Mainly due to Ruche Phase 1 development • USD 6.8m Polvo, USD 3.8m for Kudu and USD 2m Maromba • Under-lift adjustment and Ruche Phase 1 build up • Mainly due to March lifting proceeds received in Q2 • Due to the USD 45 million FPSO Polv
Slide 25: Summary
Summary
Slide 26: Strategic priorities and value levers
Strategic priorities and value levers • Production and exploration Step-change in production ahead ‒ Optimising Dussafu output including new gas lift capacity Gross production bbls/day1 ‒ Executing Dussafu exploration program 35 000 • Development 30 000 ‒ Bring Hibiscus / Ruche to first oil at end o
Slide 27: Q&A
Q&A
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