Bw Energy Ltd

Okay. Good morning, everyone. Pleasure seeing you here live at Hotel Continental in Oslo. And also welcome to you who are following us on stream. My name is Martin Simonsen. I'm head of investor relations in BW Energy. And I'll take you through the Q&A session later. But first, we have a large part of our management team here today traveling in from Lisbon. So they'll take you to the Q1 2026 and strategy updates. So please save up some questions for them after the presentation. And with that, I'll leave the word to our CEO, Carl Arnott.

Thank you, Martin. Again, a warm welcome to this presentation of first quarter and we have added a small update on our activities. Please note our disclaimer as usual. So today will be hosted by first our Chief Operating Officer Brice Morlot that will take you through the operational update. Then Jerome Berthaud will take you through the Maromba update and then Thomas Young will round it off with the financial update. I will have the pleasure of taking you through a little lead-in where I boast about our exploits, of course. And then Martin will be taking care of the... He will be the moderator for the questions, Q&A. So first quarter, all projects on plan and cost. We have been able to sanction Burdon and new Golfino wells. And we have lifted our production target to more than 100,000 barrels per day, sustained production into the next decade. We have a strong position financially and we are generating cash so the business looks good and we had a very decent operational performance in the first quarter. That's the bottom line. EBITDA 111 million net profit 33 and this will of course be gone through in detail and our end cash position was a healthy 161 million plus we have of course unused facilities on top of that. So BW Energy is delivering on its growth strategy. We are pleased that we can now say that Maromba, which we presented to you last year, more or less exactly a year ago, we said we were going to do funding. We have delivered on all the funding activities. We have acquired the jack-up. It's now in the yard and the conversion has started and the FPSO upgrades are going well. So we are very much on track for first oil in end 2027 and we are working hard now on the next phases of the Maromba development. This is of course a big transformative project for us and we will go through that in more detail. Golfino Boost project is on track. We have done the initial subsea work that is completed. We are now entering a phase where we will focus on the FPSO and optimize that and its operations. This is an old asset and we have to lift the performance of this asset, which is something we have known about for a long time, which we are very capable of. We have done this many times in our previous life, so we know exactly what to do. But it is a significant effort, but we have now a very clear path for production and production increase. And that's why we are now going to take this significant step and upgrade Vittoria. We have sanctioned Berdon. This will add very material resources to our DUSIFU license. We have also achieved a license extension. But more of that will follow. The Bourdon development will follow the Mabomo blueprint. So it's a sister rig. It will be a somewhat simpler topside. but it will have 12 well slots and this is of course to be able to harvest from the greater Beurdon area. It will be placed in a location where it will have very nice reach over nearby potential resources. So we have also sanctioned four greater Burdon area appraisal wells, and we will also drill one well in the Walt Whitman area as the next area in the DUSAFU license we want to unlock. So again, DUSAFU continues to deliver We're extremely proud of the license and what we have been able to do with this license. Golfino, we have sanctioned new wells. These are infill wells, low risk wells that we will drill and connect to the infrastructure that is there. We're targeting to lift production from Golfino to 30,000 barrels. And we have now completed a very extensive study of the total Golfino area. We have a huge license in Golfino and we have now had time and let's say we've had the time to go through all the data that we have acquired with the license from Petrobras, the previous operator, and we are finding a lot of opportunities. More wells and more appraisals will follow on Golfino as well. We have identified a huge number of targets for these activities. We are actually 10 years this year. BW Energy and if we look back from 2016 when we started we estimate that about 300 million dollars has been invested and the current market cap is 1.5 billion. So we are, I think, rightly proud of that. And as we are going to explain today, there's a lot more coming and we're targeting more than 100,000 barrels per day in 2028. So our model, We have explained this many times, but I think it doesn't hurt to repeat. We are looking at discovered resource, but that cannot be unlocked with potential. That's the first step. If we get access to it, we reuse existing infrastructure, we repurpose, facilities. We thereby do not have to take on the huge investments associated normally with oil and gas developments. So we limit the cash at risk. We are now fully capable of doing all developments internally. Of course, we use subcontractors, but we run all our projects in-house. Then we prove up. We show that our models are working, that we get the production we're supposed to have, and then we scale. And on top of that, we have very efficient infrastructure financing. So we are very capital efficient. So this is the BWE model. I think we're quite unique in many of these aspects. And in particular, I think we're unique in our ability to repurpose existing assets and in the financing that we have managed to put together for these assets. So if you look at our Assets, we have demonstrated this strategy, I think very clearly. Jusufu started out 24 million barrels. Today, we have increased that by 580%. Golfino, not as significant yet, but we're working on it. And of course, Moromba, there was no clear path to development at all. So in percentage terms, it's unlimited. But of course, it's 122 million barrels of reserves in the current development. So in aggregate, I think we have an excellent track record of expanding our high quality resource base. And we have had excellent reserve replacement, which I think is also a bit unique as this is getting tougher and tougher in the industry in general. Our portfolio. So today, production is about 25,000 barrels per day. We operate two production assets, Golfino and Dusafu. And as you can see, we have five projects in execution and our total reserve base is more than 600. And we have a lot of reserve life left at current production, but we're also, of course, working to increase our resource base. We operate in what we consider to be very stable locations, very stable countries. I know there are some confusion on what stability is. We're not necessarily talking about political stability, but we're talking about stable conditions for the type of business we are in. And if you look at Gabon, they have an excellent track record of 100 years of never challenging PSA terms. That is more than you can say about a lot of other places where oil and gas operate. Brazil, we also see that as a stable country in terms of their support for the oil and gas industry and their interest in exploiting their indigenous resources. A bit more temperamental on tax maybe, but Still, we regard this as a very stable place. And all the places like Namibia, we think also has great stability. So we operate in what we consider to be an interesting part of the world, the Atlantic margin. Today we are executing, we have three projects in execution that will add 154 million barrels of oil equivalent to P reserves. We have just FID'd two more projects which will add 68 and we have significant growth potential in all these licenses. That is really the bottom line. So we have a clear path to sustaining more than 100,000 barrels per day production. And as you can see, this is how it's composed of project producing, project in execution and appraisal and upsides. And of course, we have a significant exploration activity. And just to remind everybody, we recently shot seismic of the Niossi and Gduma licenses in Gabon. We also covered part, the Walt Whitman part of the Dusevu license, where the seismic resolution was not perfect. So we are active also in the near field exploration activities already. So investment case, more than 600 million barrels of oil equivalent, reserves and resources, more than 100,000 barrels per day by end of 28, more than 30% IRR at 60, and we will generate between 2 and 4 billion US dollars at 60 to 90 dollar oil price from until 2030. So with that, I will hand over to Brice that will take you through Ducifu and Golfino and the operations in general. And then he will hand over to Jerome that will go through Maromba. And then we have Thomas that will take you through the financials.

Thank you, Carl. Good morning everyone. Operational performance and production availability stays high. At Dusafu, we completed a well workover to maintain ESP. The job was completed with a hydraulic workover unit, so without a rig in three months, so we are very happy with this result. and Dusafu has since returned to normal operating level. Production availability for the quarter is high at 86%. At Golfino, the production was impacted by one unplanned whale maintenance, but corrective measures are underway, and availability for the quarter was 79%. On the rig schedule, we have decided to optimize the 2026 drilling sequence to confirm the potential of the northwest hibiscus area. We will drill two pilot wells, the 10P1 and 10P2, and the objective is to confirm this area upfront because in a case of success, we will install two additional slots on the Mabomo well bay and we will increase the well capacity of the platform from 12 to 14. So that means that at the end of Mabomo phase 2 draining campaign we can add two additional wells and we'll have six wells in production by the end of 2027. Therefore, we are updating the 2026 guidance to 23,000 to 26,000 bpd. The revised reading sequence is a value-driven decision and it sets the stage for higher long-term production capacity at DUSAFU. On OPEX, OPEX were impacted by one workover in Gabon and one unplanned maintenance in Brazil. So the Q126 OPEX came in at $26.9 per barrel. So this reflects two factors, the lower production because of the Goldfino well maintenance and the workover cost at Dusafu. So in light of this production outlook guidance revised, we revised as well the OPEX guidance to $22 to $26 per barrel. The change is driven by a revised production range and it's not indicative of a structural cost increase. Let's go to Gabon now. Dusafu remains the backbone of the company. And this illustration is interesting because it demonstrates the strategy of the company, which is repurposing assets to develop discovered resources. The company installed the FPSO Adolo with just two subsea wells. And at the time, the recoverable reserves were only 24 million, which is very low. Since then, the reserves have been multiplied by seven. Tortue was a success. The company added four additional subsea whales, then spent money in appraisal and discovered the hibiscus field. They installed a jack-up, repurposed a drilling rig as a production facility. with more slots, with 12 slots and it was a success because today we have 8 ESPs in production and at the end of Mabomo phase 2 we'll have 12 and maybe 14 if Northwest is a success. So that's great and in Q1 26 the asset produced 19.2 1,000 barrels of oil per day for the quarter, net to BW Energy. Operating costs in Gabon are low at $16 per barrel. One important milestone is this quarter, we have now produced a total of 50 million barrels on the Dusafu license. 50 million barrels produced already in this license from zero. We are continuously adding new discoveries with minimal incremental capital and we have grown the net 2p and 2c recoverable resources to 136 million barrels. Since 27, BW has delivered good reserve growth and multiplied by 7. So we can now zoom in on the reserve. This slide is quite interesting. This slide captures the reserve and resources trajectory of DUSAFU and the underlying approach that has driven it. 11 of 12 successful exploration and appraisal wells since the inception. And at the beginning in 2017, the reserve has grown from 24 million to 163 now. So this track record speaks directly to the quality of our subsurface understanding. Looking ahead, there are a lot of left potential in the license. All the yellow dots you see will be appraised. And we have both short-term and long-term plans for the area. So let me go through the next drilling campaign. This is the Mabomo phase 2 drilling campaign. The drilling program is designed to maximize long-term value rather than near-term production. So we will spud in July with the bore rig. And we will first drill the northwest region of Hibiscus to appraise this region. And in case of success, that would trigger two additional development wells. We have the long-league items, so in case of success, we will put those wells in production. Mabumo Phase 2, outside of these two additional wells, is four wells that will be put in production end of 26 and in 27, and each well will add 5,000 bpd, with a first oil expected by the end of this year. Then we will present you Bourdon. Bourdon is the next step on Dusafu. This is a major development for us and we are very happy today to announce that we have made final investment decision on the Bourdon project. We have a short video to show you the project.