Bw Energy Ltd

Welcome to the BW Energy Q2 presentation. My name is Alan. I'll be your coordinator for today's event. Please note this call is being recorded and for the duration, your lines will be on listen only. However, you have the opportunity to ask questions at the end. This can be done by pressing star one on your telephone keypad. If you require assistance at any time, please press star zero and you'll be connected to an operator. I will now hand you over to your host, Carl Arnet, to begin today's conference. Thank you.

Thank you, operator. A warm welcome to this BW Energy second quarter 2026 update. This update will be hosted as usual by our chief operating officer, Brice Morlot, and our chief financial officer, Thomas Young, and myself, Carl Arnet. Please note our disclaimer. and then on to the second quarter highlights. We have just started the Mabomo phase 2 drilling campaign. Super exciting and more of that will follow later on in the presentation. All development projects are on plan and budget and we had of course a record high cash flow on the current oil prices in the quarter. which have strengthened our financial position with respect to sources and uses. We are very much on track to deliver above 100,000 barrels production per day in 2028. On the Q2 results, we had revenues of $296 million in the second quarter We had a net profit of 44, cash from operations we're at 260 million dollars and we had a very healthy cash position of 254 million end of Q2. BW Energy is executing on five projects currently which will add 222 million barrels of 2P reserves and all these have low break-evens and rapid payback. This will take us to 100,000 barrels per day. We will double production in 2027 and we will double again in 2028 from current levels of around 25,000 barrels. The Mabomo Phase 2 drilling has just started and is on track. Maromba project is on track. Golfino goose project is on track. Verdun is on track. And we have also the Golfino new wells, the new infill wells we're planning. This is also on track where we have ordered all the lead items. In addition to our Let's say very concrete plans that you will be also given more granularity on later on in the presentation. We have significant upsides in all our licenses. We have the Bordeaux area upsides. We have additional DUSIFU targets in the north and east of our license with the Walt Whitman area. We have the Maromba Carbonates and we have the prospects of the greater Golfino area. So we have a significant backlog of additional targets that we are aiming to unlock as we go. Very quickly I will give you the update or status on the Maromba project. The FPSO Steel Renewal is very near completion and the current main work stream is on the top side piping and equipment refurbishment and tying of new equipment. The Wellhead platform, the leg extension has been executed. Very impressive. We have some of the longest legs in the business right now. and we are continuing with the refurbishment of the equipment. So far we've had no impact of the turmoil in the area and the logistic challenges have been solved without causing any project impact. SURF, the SURF contractor has been selected and procurement is continuing of all long lead items and we are also progressing well on the engineering. On the drilling we have selected drilling contractor and we are preparing for the initial six wells. So that's it, short and sweet. I will then leave the word to Brice that will take you through the operational update.

Thank you, Carl. Good afternoon, everyone. Now, let me walk you through the operational performance in the quarter. Total net production was 25,000 in Q2, broadly in line with Q1. At Dusafu, production was 19,000 bariloids per day, with a 98% production availability, reflecting strong consistent performance in Gabon. At Golfino, we produce 6,000 barrel oil per day at 74% availability, stable relative to Q1 and in line with the expectation as we manage the ESP configuration ahead of the boost installation. Under full year guidance of 24,000 to 27,000 barrel oil per day, this is unchanged. For the second half, three events would impact the production output. We have a two weeks planned shutdown at Dusafour in September. One Dusafour ESP is malfunctioning and potentially would require a workover if confirmed down. We are working right now to confirm this. And on the positive side, we see upsides to golfino production. Should the gas leaf compressor reliability be improved in the second half? We are working to resolve that as well. This is the issue that is the core improvement of the golfino boost project and should be removed in total by mid-year next year. As there are both events on the upside and downside that could happen, we keep the range unchanged, but production is expected to track towards the lower end of the guidance range for the full year. On the unit OPEX in Q2, it was $24 per barrel, so slightly above Q1, that was $22 per barrel. The absolute costs are largely stable. The increase is primarily driven by higher fuel prices for power generation, so no structural cost deterioration. The full year OPEX guidance of $22 to $26 per barrel isn't changed. First half average was $23 per barrel, so comfortably within the range. The H2 profile will be influenced by the Dusafu shutdown and in Brazil by the Golfinho gas cost sensitivity to oil price. So, Mabomo Phase 2 drilling campaign. I'm very pleased to present this today. The campaign has started. We started a few days ago. We are currently drilling two northwest hibiscus appraisal wells. targeting additional reserves in a part of the DUSAFU field that has not been produced before. If the appraisal confirms the resource, we will fast track conversion to production wealth in late 2027, adding production with minimal incremental cost. So a successful outcome could add up to 10,000 barrel oil per day, and this is on top of the four Mabomo platform production wells already planned in the business plan. These four production wells follow the appraisal program and each well is expected to add approximately 5,000 bpd gross. And we expect first oil from this campaign in early Q1 27 and the sequencing is deliberate, apprised first, then convert and scale consistent with how we operate across the portfolio. So Doosafu has a long and layered production runway and this slide shows how it builds up. We have the Mabomo phase two delivered for the first oil in Q1, 2027. adding approximately 20,000 barrel oil per day from four new producers with a further 10,000 barrel oil per day potential from the two appraisal wells that we are drilling as we speak, if successful. We should get the answer by September. Bourdon phase one follows in Q128 adding approximately 10,000 barrel oil per day from three initial wells across a 12-slot platform. Then we'll have Bourdon Phase 2 that will come in 2029. And then Walt Whitman Appraisal Drilling is planned for 2030. The long-term production targets for the Doucefou area is between 30 and 45,000 miles per day growth. The ACUMOED platform, which is the platform for Bourdon, is currently in conversion and will serve as a hub for the Bourdon development and opens up the southern part of the license for further exploration with Bourdon UpDeep, Bourdon SoftWest, Abaye and Bourdon SoftEast. Dusafu is not a maturing asset. The asset still has the majority of its production life ahead of it. Now Thomas will take you through the financial section.