Presentation

BW Energy is an E&P company with assets in Gabon, Brazil and Namibia. The company was spun out of BW Offshore and listed as a separate entity on the Oslo Stock Exchange in February 2020. BW Offshore currently owns 35.2% of the outstanding shares while BW Group holds a direct 35.1% stake in the company. BW Energy currently has 77 mill bbl net of 2P reserves and 165 mill bbl net of 2C resources. The company has a market capitalization of USD 740m and cash position of USD 120m.

BW Energy holds a 73.5% working interest in the Dussafu block offshore Gabon. The block was acquired in April 2017, with no clear path to an FID. Only 18 months later, BW Energy achieved first oil on the Tortue block, on time and budget. In addition, the company acquired the Maromba field in March 2019, where it holds a 95% interest and is the operator.

Whilst Covid-19 has delayed drilling activities, the company is prepared to drill the Hibiscus extension well once restrictions allow for it. If successful it could double the company’s reserves, noting that BWE has already delivered a 7.5x increase in 2P reserves since it secured operatorship in 2017. The development activities however have progressed well the past year, with first oil on Hibiscus & Ruche expected in Q1’23e. This will bring gross production to 40,000 bbl/day, a level where we estimate that BW Energy will generate its entire EV in FCF in less than three years at Brent USD 60/bbl.