BW Energy: Q1 2024 trading update
30 April 2024 - 3:30PM
BW Energy: Q1 2024 trading update
BW Energy: Q1 2024 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 first quarter of 2024 on Friday, 24 May
2024.
Net production to BW Energy from the operated assets was 2.48
million barrels of oil in the first quarter of 2024. This includes
production from the Tortue, Hibiscus and Hibiscus South fields in
the Dussafu licence (73.5% working interest) and production from
the Golfinho field (100% working
interest).DUSSAFU
Net production from the Dussafu licence averaged 18,260 barrels
of oil per day in the quarter, amounting to a net production to BW
Energy of 1.66 million barrels of oil for the period. Production
remained impacted by the electrical issues affecting the ESPs
(electrical submersible pumps) on the Hibiscus field, as one well
remained offline. BW Energy completed two liftings in the quarter,
both in March of approximately 1.4 million barrels in total net at
an average realised price of USD 83 per barrel. Production costs
(excluding royalties) for the period was approximately USD 23 per
barrel. This compares with Q4 production costs of USD 28 per barrel
reflecting improved operational efficiency and production.
The net sold volume, which is the basis for revenue recognition
in the financial statement, was approximately 1.7 million barrels
including 97,500 barrels of DMO deliveries and 203,800 barrels
state profit oil with an over-lift position of 167,800 barrels at
the end of the period.
On 8 March, production started from the DHBSM-1H well in the
Hibiscus South field five months after the initial discovery in
November 2023. Production performance from the well has been in
line with expectations.
Drilling of the DRM-3H well in the Ruche field has been
completed with production start pending delivery of a new
conventional ESP (electrical submersible pump). This is expected
during the second quarter. The well was drilled as a horizontal
well from the MaBoMo production facility to a total depth of 5,795
metres into Gamba sandstone reservoir. The well is located
approximately 3.7 kilometres east of the MaBoMo production
platform.
Following completion, the Borr Norve jackup has commenced
drilling operations on an additional pilot well, DHBSM-2P, to test
the northern part of the recently discovered Hibiscus South field
where the DHBSM-1H production well was recently put on production.
If the DHBSM-2P pilot well is successful, a production well is
planned.
Separately, in May, the FPSO BW Adolo will undergo annual
scheduled maintenance, resulting in a planned shutdown for
approximately three weeks.GOLFINHO
Net production from the Golfinho field averaged 9,030 barrels of
oil per day in the first quarter, amounting to a total production
of 822,500 barrels in the period. One lifting was carried out in
February of 490,000 barrels at a realised price of USD 82 per
barrel. Remaining inventory was approximately 657,900 barrels at
the end of the period. Production cost (excluding royalties)
averaged USD 48 per barrel. This compares with Q4 production costs
of USD 44 per barrel, mainly reflecting lower
production.OTHER ITEMS
During the quarter, the Company extended and increased the
Golfinho prepayment facility to USD 120 million from originally USD
80 million. The facility was fully drawn at the end of the
period.
The Company has also executed a sale and leaseback agreement
with a Minsheng Financial Leasing Co entity for the MaBoMo
production facility. The agreement will provide USD 150 million of
gross sales proceeds under a ten-year lease term with an option to
repurchase the unit from the end of year seven. The transaction
frees up net USD 110 million of liquidity to BW Energy, which will
be used to finance the execution of the growth strategy including
the continuing development projects in Gabon.
BW Energy had a cash balance of approximately USD 150 million on
31 March 2024, compared to USD 194 million on 31 December 2023. The
decrease reflects the net impact from oil sold in the period,
drawdown on the expanded prepayment facility and investments,
primarily related the ongoing Hibiscus Ruche field development. The
Company had a total drawn debt balance of USD 412.8 million as of
31 March 2024 including the Golfinho prepayment facility.
The company expects to recognise a net loss of USD 3.3 million
in the first quarter related to the hedging program, of which USD
3.8 million is unrealised.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, 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 580 million barrels of oil equivalent at the start
of 2024.This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
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