Bw Energy Ltd

Welcome to the BW Energy Q2 presentation. My name is Alan and 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 will have the opportunity to ask questions at the end. This can be done by pressing star 1 on your telephone keypad. If you require assistance at any time, please press star 0 and you'll be connected to an operator. I will now hand you over to your host, Carl Arnet, CEO, to begin today's conference. Thank you.

Good afternoon and welcome to this BW Energy third quarter presentation. This presentation will, as usual, be hosted by our Chief Operating Officer, Brice Morlot, and our Chief Financial Officer, Thomas Young, and myself, Carl Arnet. Before we talk about the quarter, I want to talk about the recent incident As you are aware, on the 24th of October, the Prospect 5 rig sank during preloading just outside our Mabomo facility. 115 people were on board, with 110 of them rescued and safely brought to Port Shanti. Our thoughts are with the families, friends, and colleagues of those affected. This is a tragedy, and it puts everything else in the past. We talk about today into perspective, of course. I want to thank particularly the crews and rescue teams who brought the 110 people safely to shore. And thank you also to the country of Gabon, President Nigema, his administration, to Boar Drilling, and to our neighbors Valko and Perenko. All came to help without hesitation. This is really the industry at its best. Our priority remains to support the search, the people affected, and then analyze what happened. On the business side, briefly, production was already shut down as a precaution before the rig arrived, and there is no damage to our facilities. That has been ascertained with video surveillance. There was a known volume of diesel on board the drilling rig and we are working to minimize any environmental impacts. As you understand, we are still in an early phase and the main focus has so far been on the search and rescue efforts. This will impact our DUSIFU timeline and Brice will provide some further comments on that. I'm sure there are many questions and we will do our best to answer what we can today based on what we know today. Beyond the incident, the third quarter brought real progress to the corner of Hibiscus, Maine. We made a strategic entry into Angola, and this will be commented further. The Kudu farm down has drawn strong interest, and we will provide some comments on that too. And we extended key financial agreements. Production was 21,500 barrels per day. and Brice will cover in more detail how that was achieved. Financial results reflected the timing of liftings, which Thomas will explain in detail. We have, as you know, five projects in execution, which we expect to add 222 million barrels of 2P reserves. Malbomo Phase 2 is the one affected by the incident. The other projects we are pleased to report are on track, and that is why we maintain our target of more than 100,000 barrels per day in 2028. The appraisal results were strong, but of course, first oil from Mabomo will have to be rescheduled to a later date than the planned first quarter of next year. Maromba is our largest project and it is on track. The FPSO topside modules have been delivered to site at Dalian and we are working towards the sale away of the FPSO in the second quarter next year. The well-oiled platform will go to Brazil by heavy lift in January. Subsea equipment and drilling are all on schedule. We are on track for first oil late 2027. The next key step in the Maromba project is getting the wellhead platform from Dubai to Brazil. The tow through the Strait of Hormuz is planned for December and a transfer to heavy lift in January and then to Brazil. We are constantly reviewing the security situation, and we are in constant dialogue with the tow operators. When we get to Brazil, the unit will have to pass several regulatory approvals from AMP, IBAMA, Navy, and obviously also Customs. And we work closely, proactively with all of them, and all these processes are in line with the schedule. We have also in the quarter been pleased to announce our strategic entry into one of Africa's most important oil basins. Together with E2 as operator and our partner Chariot, we have gained exposure to producing assets. Our share is expected to be around 8,000 barrels per day from the first quarter of 27 when we expect closing. The terms are attractive, around $6 per barrel of 2p reserves after interim cash flows, with payback in under two years, and last but not least, a fully funded abandonment fund. Just as important, there are more than 500 million barrels of identified upsides. Some of those resources are already being targeted and brought forward from the nearby PKBV field, which should add further production in the coming years. Last but not least, the Kudu farm down. The CARAS 1A results are now fully integrated, and they showed three plays with both oil and gas potential. This summer, we launched a farm down, Interest is strong. We are in dialogue with around 50 companies with about 20 NDAs signed so far. We expect to complete the farm down including government approvals in the second half of 27. In parallel we continue our dialogue with the government on gas to power and with that I hand over to Brice for the operational update.

Thank you Carl and good afternoon everyone. Before discussing the quarter, I want to acknowledge the tragic incident of Saturday, leaving five people missing. Our thoughts are with the families and colleagues affected, and I want to sincerely thank the rescue team, Gabonese Authority and the oil and gas company operating in Gabon for their exemplary support. For the quarter, the net production was 21.5 thousand barrels per day, or 2 million barrels, down to 25.3 in Q2. The facility performed well. The decline came from two well-specific issues, one at each asset. At Golfino, production was 4.7 thousand barrels per day, with 58% production availability. This reflects a pump failure in one well, which will be replaced later this year and continued downtime on the gas lift compressor. That is exactly the constraints GOLFINO BOOST will remove from the next year. At DUSAFU, net production was 16.8 thousand barrels per day with 99% production availability on the FPSO at the low. The loss came from one album well where the electrical submersible pump failed in July after nearly two years in operation. The well has been shut in since then, waiting for a workover. The workover was planned with the drilling rig and is therefore delayed. However, it can be done with a hydraulic workover unit, so bringing the well back does not depend on a new rig and we are working on mobilizing a unit in the coming months. In the fourth quarter, we moved the planned two-week maintenance at Dusafu to October to coincide with the ESP workover. By the time of the rig incident, the maintenance was complete and Mabomo had been shut in as a standard pre-mobilization procedure while BWA Dolo FPSO continued to produce. Mabomo has been confirmed safe to operate and production has resumed. We expect the full year guidance of approximately 23,000 barrels per day as announced in our operational update to hold, including the impact of the incident. Moving to cost, Unitopex was $27 per barrel in the quarter, up from $24 in Q2. This is a volume effect. Absolute production costs were 55 million, flat on the previous quarter. So the same cost base was spread over a lower production. By asset, Dusafu came in at $19 per barrel and Golfino 58. Golfino is also affected by the cost of gas for power generation, which follows the oil price. For the first nine months, Unit OPEX averaged 24.5 per barrel and the full year OPEX guidance is maintained at 22 to 26 per barrel. Turning to Mabomo Phase 2, before the incident, the campaign had delivered a strong result, both appraisal wells in the northwest pond oil that brings our track record at Dusafu to 13 successful wells out of 14. The first well formed a 30 m oil column in the Gambas reservoir with a good reservoir quality. We estimate around 17 million barrels of oil in place and about 6 million barrels of incremental recovery from dislocation. And the second well formed 16 m of oil column in a separate accumulation confirming as well movable oil. Together, the two wells support around 8 to 9 barrels of recoverable volume and two additional production wells. It is too early to say exactly when we will be able to drill, but we are already working to find solutions to continue the drilling program. This slide shows the depths of Dusafu portfolio and the options it gives us. Mabumo Phase 2 will add up to 20,000 barrels per day gross from 5 new producers once drilling can proceed. Bourdon Phase 1 is planned for first soil in the first quarter of 2028, adding up to around 15,000 barrels per day from the Akum Wellhead platform, which is being converted in Dubai right now. Before that, beyond that, we have an infield well on Tortue, Bourdon phase 2 in 29, and wet treatment appraisal drilling planned in 2028. With the Prospector 5 due to come off contract in 2027, before the incident, we had already started sourcing a rig for the Bourdon development. We are now looking at how best to fit Mabomo Phase 2 wells alongside that program and we will come back with our 2027 production outlook once the plan is filmed up. On the long-term picture, it hasn't changed. Dusafu can sustain 30 to 45 thousand barrels per day gross and we remain confident in reaching more than 100 thousand barrels per day for the company in 2028. With that, I hand over to Thomas for the financials.