BW OFFSHORE LIMITED HIGHLIGHTS oEBITDA ofUSD 57 million for the fourth quarter 2019 andUSD 191.7 million for the full year 2019 oNet profit ofUSD 26.2 million for the fourth quarter 2019 andUSD 72.5 million for the full year 2019 oLifting from Tortue was 1,307,000 bbls of oil in the quarter net toBW Energy and 4.3 million bbls for the full year oTullow 10% back-in right exercised oDTM-4H and DTM-5H wells successfully drilled and completed for Tortue phase 2 development oBW Energy shares commenced trading onOslo Stock Exchange 19 February under the ticker "BWE" oThrough the IPO, the company raisedUSD 125 million of growth capital in an over-subscribed offering EBITDA for the fourth quarter of 2019 wasUSD 57 million , up fromUSD 35.1 million in the third quarter. The increase was due to the impact of two liftings from Tortue, which yielded net 1.3 million bbls toBW Energy , compared to 0.6 million bbls the previous quarter. Gross production from Tortue averaged 11,800 bbls per day for the year and 10,735 bbls for the fourth quarter. The total gross production from the Tortue field in the fourth quarter was 987,000 bbls of oil. The two liftings completed by the licence partners in the quarter realised an average price ofUSD 65.1 per barrel. Production cost (excluding royalty) wasUSD 22.8 per barrel in the quarter andUSD 21.1 per barrel for the full year. On 19 February,BW Energy commenced trading on theOslo Stock Exchange (OSE) after completing the IPO and listing process, raising gross proceeds of approximatelyUSD 125 million before overallotment to finance future growth investments. Approximately 95% of the shares were allotted to institutional investors and 5% to investors in the retail offering. Some 700 investors were allocated shares in the IPO in addition to approximately 4,000 shareholders ofBW Offshore who receivedBW Energy shares distributed as dividend-in-kind. "We will execute our strong pipeline of projects and look forward to delivering long-term value creation for existing and new shareholders as a listed growth E&P company," saidCarl Krogh Arnet , the CEO ofBW Energy . "We plan to increase production five-fold to 50,000 bbls per day by end of 2022. The first step towards the target is increased production from Torture as we by March and June this year complete and tie in four new subsea wells before drilling a further exploration well on the Dussafu license." FINANCIALS Net financial expense wasUSD 6 million for the full year 2019. Total equity at31 December 2019 wasUSD 363.1 million (USD 229.5 million in 2018). The equity ratio was 49.2%. Total available liquidity as of31 December 2019 amounted toUSD 81.0 million . The funds from the IPO were received in the BW Energy accounts on 20 February.BW Energy is also in process of entering into a reserved based lending facility (RBL). The RBL facility ofUSD 200 million plus an accordion ofUSD 100 million , is expected to be available in Q2 2020. E&P DEVELOPMENT Drilling operations at Tortue are currently ongoing where the rig has completed the first two of four subsea production wells on the Tortue field. The rig is currently drilling the third well where progress is according to plan. The first two production wells of the Tortue Phase 2 development will be tied back to the BW Adolo and will increase oil output. First production from the completed cluster, consisting of the DTM-4H and DTM-5H production wells, is planned forMarch 2020 . The second cluster, also consisting of two wells, is expected to be in production byJune 2020 . Following completion of the two remaining production wells, the rig will mobilise to a new location and drill one exploration well. The location of this well is being determined based on reprocessed seismic for the licence. CORPORATE EVENTS On17 December 2019 ,Tullow Oil Gabon S.A. exercised its 10% back-in right to the Dussafu production sharing contract ("PSC"). The agreement is pending a resolution of disputed costs ofUSD 18.7 million . If an agreement is not reached, then the dispute will be submitted to a simplified arbitration. Following the completion of the back-in right, the interests of the parties in the PSC are;BW Energy (73.5%), Tullow (10%),Gabon Oil Company (9%) and Panoro (7.5%). SUBSEQUENT EVENTS On19 February 2020 ,BW Energy was listed on theOslo Stock Exchange . In the IPO, the company raised approximatelyUSD 125 million in new equity, at a price ofNOK 24.40 per share. A total of 46,904,200 shares were issued in the IPO. An additional 7,035,630 shares were over-allotted, representing 15% of the number of shares sold in the offering. Free float after completion of the offering (excluding overallotment) and theBW Offshore dividend distribution is approximately 25%. Following the offering and dividend distribution,BW Offshore holds 38.8%,BW Group Limited 35.1% and Arnet Energy approximately 1% ofBW Energy , respectively. On18 March 2020 BW Energy will release its full annual report for 2019 including consolidated financial statements. For further information, please contact: Knut Sæthre, CFO BW Energy, +47 91 11 78 76 ir@bwenergy.no AboutBW 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 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 offshoreGabon and a 95% interest in the Maromba field inBrazil , both operated by the Company. Total net 2P+2C reserves are 247 million barrels at the start of 2020 and gross average production from Dussafu was 11,779 bbl/day in 2019. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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