NOT FOR DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO
Targeting Q1 2020 IPO of BW Energy as an independent E&P company
Highlights:
- BW Energy plans Initial Public Offering (IPO) and listing following strong growth and value creation in 2019
- IPO and listing planned through a combination of a distribution of shares from
BW Offshore and a contemplated equity raise of about ofUSD 175 million - New investors will be invited to subscribe for new shares at a valuation of
USD 700-800 million for the current outstanding share capital of BW Energy - The target for the first day of trading on the
Oslo Stock Exchange is within Q1 2020 - Strong operational performance on Dussafu in 2019, with an average production of 11,779 bbl/day (gross), field uptime of 98% and average OPEX of
USD 21.7 /bbl (excluding royalty) - Financial position of
USD 39.6 million net cash as of31 December 2019 and no external interest-bearing debt - In process of finalising a
USD 200 million RBL facility for Dussafu with expected closing in Q1 2020
“Throughout 2019, we exceeded operational and financial targets at Dussafu. Successful in-field exploration significantly increased our reserves base and led to an acceleration of future production growth. In
BW Energy is a fast-growing E&P company with a differentiated strategy targeting proven offshore oil and gas reservoirs through phased developments by utilising existing FPSOs to reduce time to first oil and cash-flow with lower investments than traditional offshore developments. Currently, the two main assets of the Company are the producing Dussafu Marine Permit offshore
“BW Energy has matured into a full cycle E&P company with competencies covering the full scope of offshore field developments and a clear path to future production growth and value creation,” said
Effective from the day of listing, the Board of Directors of BW Energy will consist of;
IPO to fund production growth
Following the growth and maturation of the Company, the current owners and the Board of Directors have decided to proceed with the previously communicated plan to list the Company.
The listing is intended to be executed through a combination of i) an IPO of new shares in the Company raising gross proceeds of about
The net proceeds from the IPO will strengthen the Company’s financial position and fund the development of the Maromba field as well as future growth opportunities. Based on initial feedback obtained by the Joint Global Coordinators, the Company and its current shareholders expect to execute the IPO at a pre-money valuation of current outstanding share capital in the range of
The Company intends to satisfy the free float requirement for listing on the
Continued strong operational performance on Dussafu, progressing Maromba towards development
As operator of the Dussafu block offshore
Following the announced Hibiscus discovery in
In
BW Energy financial status per year end 2019
In Q4 2019, two liftings plus domestic market sales were made from the Dussafu license for a total of 1.31 million barrels net of state profit oil. The average realized price was
The Company is in advanced stages of finalising a
New stand-alone corporate website
Please visit the new corporate website at www.bwenergy.no for more information.
Contact details
Email: ir@bwenergy.no
CFO BW Energy – Knut Sæthre: +47 91 11 78 76
CFO
Head of Corporate Finance –
About BW Energy
BW Energy is a growth E&P company with a differentiated strategy targeting proven offshore oil and gas reservoirs through low risk phased developments. The Company has access to existing FPSOs to reduce time to first oil and cash-flow with lower investments than traditional offshore developments. The main assets are 73.5% of the producing Dussafu Marine Permit offshore
About
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Not for distribution in or into
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These materials do not constitute or form a part of any offer of securities for sale or a solicitation of an offer to purchase securities of the Company in
In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the EU Prospectus Regulation, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State. The expression "EU Prospectus Regulation" means Regulation (EU) 2017/1129 of the
In the
The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Transaction.
For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Company's shares.
Each distributor is responsible for undertaking its own Target Market Assessment in respect of the Company's shares and determining appropriate distribution channels.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice.
This announcement is made by and, and is the responsibility of, the Company. The Managers are acting exclusively for the Company and no one else and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients, or for advice in relation to the contents of this announcement or any of the matters referred to herein.
Neither the Managers nor any of their respective affiliates makes any representation as to the accuracy or completeness of this announcement and none of them accepts any responsibility for the contents of this announcement or any matters referred to herein.
This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities of the Company. Neither the Managers nor any of their respective affiliates accepts any liability arising from the use of this announcement.
Each of the Company, the Managers and their respective affiliates expressly disclaims any obligation or undertaking to update, review or revise any statement contained in this announcement whether as a result of new information, future developments or otherwise.
The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.
Attachments
- BW Energy Investor presentation
- 2019 Q3 BW Energy Financial Report
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