BW Offshore: BW Energy announces revised plan of development for Ruche phase 1

BW Offshore Limited (BWO) is pleased to announce a revised Ruche development plan including the Hibiscus discovery which will accelerate production growth from the Dussafu license offshore Gabon. Under the revised plan, estimated gross production from Ruche phase 1 is forecasted to double from 15,000 bbls/day to 30,000 bbls/day. These volumes will come in addition to the production from the Tortue field. The Company is also pleased to announce that the management estimate for the Hibiscus reserves has been confirmed by the independent auditor.

The changes to the Ruche development plan follow the recent successful Hibiscus exploration well (DHIBM-1). Under the revised plan, the contemplated platform will be moved 4 km to the west to incorporate the Hibiscus resources. Ruche phase 1 will in its revised form consist of four Hibiscus production wells and two Ruche wells, all from the Gamba formation. Phase 2 of the Ruche development will develop the additional proven resources through up to 7 wells to maintain the production plateau. The change in development plan will not affect expected timing of first oil from Ruche.

“Hibiscus is proving to be a discovery of equal quality and magnitude to the Tortue field. The revised development will add significantly to our production capacity and take us above the FPSOs current nameplate of 40,000 bbls/day. We are confident that the license partners will support the revised development plan launched by BW Energy," said Carl K. Arnet, CEO of BW Energy.

The estimated capex for the revised Ruche phase 1 incorporating the Hibiscus development has been increased to USD 445 million (gross) from the original estimate of USD 375 million. The estimated incremental reserves produced by Ruche phase 1 are 50 million bbls gross (management estimate). Total field operating costs including Ruche phase 1 are estimated to be USD ~10/bbls excluding royalties and taxes at current FPSO nameplate capacity.

BW Offshore has received updated reserve report from independent auditor Netherland, Sewell & Associates Inc. (“NSAI”) which assess the Hibiscus reserves at 45.4 million barrels of oil (2P) gross. This increases the Dussafu license 1P, 2P and 3P gross 68%, 68% and 69% respectively. A detailed overview of these reserves is found in attachment 1 to this press release.

BW Energy is currently drilling four new production wells on Tortue which will be followed by one more exploration well under the current sanctioned development program. This program is expected to result in an average gross production of 16,000 bbls/day in H1 2020 and 23,000 bbls/day in H2 2020. The Tortue field produced gross average of ~11,600 bbls/day in Q3 2019.  

BW Energy has agreed options for additional two exploration wells with the drilling contractor Borr Drilling. These wells will if the options are exercised extend the current drilling campaign to Q3 2020.

“We are considering using one or two of these options based on our successes to date and the number of prospects we have identified. We also expect results from ongoing seismic reprocessing by year-end which combined with information from the ongoing drilling campaign will provide valuable data points. I think it is safe to say that the Dussafu development is delivering beyond our initial expectations,” said Carl K. Arnet.

BW Energy expects to finance the Ruche phase 1 development from existing liquidity and cash-flow from operations. The company continues its preparations for a planned listing on the Oslo Stock Exchange.

The Dussafu license (Ruche EEA) contains the following management estimates of discoveries and prospects updated as per the latest Hibiscus discovery. A table is found in attachment 2 to this press release.

For further information, please contact:
Knut R. Sæthre, CFO BW Energy, +47 911 17 876
Ståle Andreassen, CFO BW Offshore, +65 97 27 86 47

About BW Energy

BW Energy Ltd. (BWE) is a differentiated E&P company with production, development and exploration licenses in West Africa and Brazil, targeting proven reservoirs by redeployment of existing FPSOs for highly efficient field developments and low-risk production growth. BWE holds a 73.5% working interest in the Dussafu Marin Block offshore Gabon and a 100% interest in Maromba field offshore Brazil.

BWE is 68.6% owned by BW Offshore Limited, 30.5% by BW Group Limited and 0.9% by Arnet Energy Pte Ltd.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.