Q1 2023 trading and financial update
Q1 2023 trading and financial update
BW Energy today provides an update on the operations and development of the Dussafu Marin license in Gabon. The Company will publish financial figures for the first quarter of 2023 on Wednesday, 24 May 2023.
Gross production from the Tortue field averaged approximately 7,300 barrels of oil per day in the first quarter of 2023, amounting to a total gross production of approximately 660,500 barrels of oil for the period. Production was impacted by planned annual maintenance of the BW Adolo in February as well as the field development activities in association with Hibiscus/Ruche first oil.
BW Energy completed one lifting in the first quarter at a price of USD 77 per barrel. Production cost (excluding royalties) for the period was approximately USD 58 per barrel due to the lower production in the quarter.
BW Energy’s share of gross production was approximately 485,000 barrels of oil. The net sold volume, which is the basis for revenue recognition in the financial statement, was 750,000 barrels with an over-lift position of 247,000 barrels at the end of the period.
BW Energy had a cash balance of USD 166 million on 31 March 2023, compared to USD 210 million on 31 December 2022. The decrease is due to continued investments in the Hibiscus / Ruche development project. The Company had a total drawn balance of USD 200 million as of 31 March 2023. BW Energy is pleased to announce that the additional USD 100 million accordion has now been committed by three additional banks, bringing the total RBL facility for Dussafu up to USD 300 million.
At the start of the period, the Company had commodity price hedges for a remaining total volume 1.29 million barrels for 2023 and 2024, of which approximately 70% was for 2023. These were a combination of swaps and zero-cost collars that will allow for future cash flow stability for ongoing development projects. BW Energy has recognised unrealised crude oil hedge gains in the amount of USD 3.4 million for the first quarter.
In early April, the Company safely achieved first oil from the Hibiscus / Ruche Phase 1 development. Production performance from the first well remains in line with expectations at approximately 6,000 barrels per day. Drilling and completion work is currently underway on the second production well. The Hibiscus / Ruche Phase 1 drilling campaign targets four Hibiscus Gamba and two Ruche Gamba wells which are expected to add approximately 30,000 barrels per day of total oil production when all wells are completed in early 2024. The wells are drilled by the Borr Norve jackup rig.
Separately, commissioning of the gas lift compressor is ongoing on the BW Adolo. Once in operation, it will support production from the existing six Tortue wells. The start-up of the gas lift compressor is expected later in the month of May.
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 million barrels at the start of 2023.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.