BW Energy has provided an update on the operation and development of the Dussafu Marin license in Gabon. The Company will publish its financial report for the first quarter 2021 as the Gross production from the Tortue field averaged approximately 13,600 barrels of oil per day in the first quarter of 2021, amounting to a total gross production of 1.22 million barrels of oil for the period.
BW Energy completed one lifting in the quarter and realised an average price of USD 66.7 per barrel. Production cost (excluding royalties) was approximately USD 23 per barrel. This includes approximately USD 1.0 million of additional costs related to the continued handling of the COVID-19 pandemic through the period.
BW Energy’s share of gross production was approximately 900,000 barrels of oil. Net sold volume, which is the basis for revenue recognition in the financial statement, was 650,000 barrels including approximately 97,000 barrels of quarterly Domestic Market Obligation (DMO) deliveries, resulting in an under-lift position of around 156,000 barrels at the end of the period.
BW Energy had a cash balance of USD 185 million at 31 March 2021, compared to USD 120 million at 31 December 2020. The increase is mainly due to the capital raise of USD 75 million in January 2021. The company is well capitalised for the upcoming investment activities with a robust balance sheet and no external debt.
In April, one subsequent lifting of 666,000 barrels was completed to BW Energy and JV partners. The next lifting is scheduled to take place in June.
The drilling of the Hibiscus Extension appraisal well (DHIBM-2) started about two weeks ago. Drilling activities are progressing as planned. The vertical well is designed to test the northern extension of the Gamba reservoir of the Hibiscus field, discovered in 2019. The Company will give a more detailed presentation of the ongoing drilling campaign at the upcoming Q1 2021 presentation.
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 FPSOs 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 242 million barrels at the start of 2021.
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