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.