BW Energy: Q3 2023 trading and financial update
26 Octobre 2023 - 7:30AM
BW Energy: Q3 2023 trading and financial update
Q3 2023 trading and financial 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 third quarter of 2023 on Thursday, 16
November 2023.
Gross production from the operated assets was 27,400 barrels of
oil per day in the third quarter 2023. This included a full quarter
of production from the Tortue and Hibiscus fields in the Dussafu
licence (73.5% working interest) and production from the Golfinho
field after assuming 100% ownership on 28
August.
INCREASED PRODUCTION IN GABON
Gross production from the Dussafu licence averaged approximately
23,200 barrels of oil per day in the quarter, amounting to a total
gross production of approximately 2.14 million barrels of oil for
the period. Production was positively impacted by first oil from
two additional Hibiscus wells during the quarter and start-up of
the additional gas lift compressor on the FPSO BW Adolo. BW Energy
completed one lifting in the third quarter at a price of USD 79 per
barrel. Production costs (excluding royalties) for the period was
approximately US 28 per barrel. The reduction, compared to the
previous quarter, reflects mainly the increased
production.
BW Energy’s share of gross production was approximately 1.57
million barrels of oil, an increase of over 50% from the prior
quarter. The net sold volume, which is the basis for revenue
recognition in the financial statement, was approximately 1 million
barrels including 32,500 barrels of Domestic Market Obligation
(DMO) deliveries with an under-lift position of 116,000 barrels at
the end of the period.
CLOSING OF THE GOLFINHO ACQUISITION IN BRAZIL
Gross production from the Golfinho field averaged approximately
11,200 barrels of oil per day from the period 28 August to 30
September, amounting to a total production of 381.700 barrels in
the period. There were no liftings in the quarter. The first
Golfinho lifting of about 500,000 barrels of oil Is expected to
occur in November. Production cost (excluding royalties) averaged
USD 48 per barrel for the period.
OTHER ITEMS
BW Energy had a cash balance of USD 197.6 million on 30
September 2023, compared to USD 233 million on 30 June 2023. The
decrease is primarily due to ongoing development of Hibiscus Ruche
and the Golfinho closing, offset by, draw-down on the USD 80
million Golfinho prepayment facility. The Company had a total drawn
debt balance of USD 380 million as of 30 September 2023 including
the prepayment facility.
At the start of the period, the Company had commodity price
hedges for a remaining total volume of approximately 1.56 million
barrels for 2023, 2024 and 2025, of which approximately 46% was for
2023. These were a combination of swaps and options that will allow
for future cash flow stability for ongoing development projects. BW
Energy has recognised crude oil hedge losses in the amount of USD
9.1 million for the third quarter of which approximately USD 0.3
million were realised.
In July and September, the Company safely commenced production
from the third and fourth well, respectively, of the Hibiscus /
Ruche Phase 1 development. Challenges with the ESP (electronical
submersible pump) on the DHIBM-3H and -4H wells temporarily
impacted production. The ESPs were re-started in mid-October and
the Company is working to stabilise production from both wells. The
current total Dussafu gross production, with all the Tortue and
Hibiscus wells in operation, is approximately 35,000 barrels of oil
per day.
At the Ruche field, drilling- and completion activities on the
DRM-3H production well was temporarily suspended pending an
alternative final casing design after encountering oil in the Gamba
reservoir. The Company expects to return to complete this well
later in the drilling campaign when additional casing material is
received.
To maximize the use of the contracted drilling rig, the Dussafu
partners have initiated drilling of the Hibiscus South exploration
prospect (DHBSM-1), located about 5 kilometers southwest of the BW
MaBoMo production platform. If DHBSM-1 contains commercial volumes,
the plan is to return to the well and complete it as a production
well in early 2024. The ongoing Hibiscus / Ruche drilling campaign
has the potential to bring total oil production on the Dussafu
license up to approximately 40,000 barrels per day gross when all
wells are completed and on-stream.
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 in, 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 546 million barrels of oil equivalents at the start
of 2023, when including the Golfinho Clusters.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
BW Energy (TG:6BW)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
BW Energy (TG:6BW)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024