BW Energy provided an update on the operation and development of the Dussafu Marin permit in Gabon. Gross production from the Tortue field averaged around 10,500 barrels of oil per day in the second quarter of 2021, for a total gross production of 0.95 million barrels of oil for the period. The decrease in production compared to the first quarter of 2021 is mainly due to a scheduled shutdown for maintenance.
BW Energy completed two removals during the quarter and achieved an average price of $ 69.8 per barrel. The cost of production (excluding royalties) was around $ 31 per barrel. The increase in the cost of production per barrel was affected by the decline in quarterly production. The overall cost of production includes approximately $ 1.5 million in costs related to the continued management of the COVID-19 pandemic during the period.
BW Energy’s share of gross production was approximately 700,000 barrels of oil. The net volume sold, which is the basis of revenue recognition in the financial statements, was 1,140,000 barrels, of which approximately 97,000 barrels were quarterly domestic market bond (DMO) deliveries, resulting in a over-lift position of approximately 300,000 barrels at the end of the period. .
BW Energy had a cash balance of $ 216 million as at June 30, 2021, compared to $ 185 million as at March 31, 2021. The increase is primarily due to strong operating cash flow reflecting a higher realized oil price . The company is well capitalized for future investing activities with a strong balance sheet and no external debt.
At the Tortue field, the drilling of the last horizontal production well, DTM-7H, was successfully completed according to plan. High quality oil sands were encountered according to the prognosis. Work will now continue with the completion and connection of the two wells (DTM-6H and DTM-7H) with first oil expected at the start of the fourth quarter of 2021.
The Hibiscus North exploration well (DHBNM-1) was drilled earlier this week and drilling activity is progressing as planned. The well has a geological analogue to the Beehive field, where the Gamba structure is the primary target.
The Company will make a more detailed presentation of the current drilling campaign during the next Q2 2021 presentation scheduled for August 20, 2021.
Source: Petroleum Africa