March 18, 2020 / 6:37 AM / 22 days ago

BRIEF-BW Energy To Not Exercise Options For Two Exploration Wells Under Rig Contract

March 18 (Reuters) - BW Energy Ltd:

* BW ENERGY: OPERATIONAL UPDATE AND 50% CAPITAL EXPENDITURE REDUCTION FOR

* TODAY ANNOUNCES ADJUSTMENTS TO DEVELOPMENT PROGRAM ON OPERATED DUSSAFU MARIN LICENSE IN GABON IN RESPONSE TO SPREAD OF CORONAVIRUS (COVID-19) AND RESTRICTIONS ON INTERNATIONAL TRAVEL

* DEFERRAL OF INVESTMENTS ALSO REFLECTS INCREASED MARKET VOLATILITY AND OIL PRICE UNCERTAINTY.

* ON CORONAVIRUS: PRODUCTION ACTIVITIES IN GABON REMAIN UNINTERRUPTED AS BW ENERGY COMPLIES WITH PUBLIC HEALTH ADVISORY AT ALL ITS LOCATIONS TO ENSURE SAFE OPERATIONS AND CONTRIBUTE TO STOPPING SPREAD OF COVID-19.

* IMPACT OF INTERNATIONAL TRAVEL RESTRICTIONS IS LIMITING COMPANY’S ABILITY TO MOVE ESSENTIAL PERSONNEL, SUBCONTRACTORS AND EQUIPMENT TO AND FROM GABON

* DECIDED TO NOT EXERCISE OPTIONS FOR TWO ADDITIONAL EXPLORATION WELLS UNDER EXISTING RIG CONTRACT

* BW ENERGY HAS DECIDED TO DEFER RUCHE PHASE 1 DEVELOPMENT

* REVISED CAPITAL SPENDING PROGRAM FOR 2020 AMOUNTS TO APPROXIMATELY USD 125 MILLION, OF WHICH ABOUT USD 30 MILLION WAS INCURRED AS OF END OF FEBRUARY

* REVISED PROGRAM REPRESENTS A 50% REDUCTION TO COMPANY’S PREVIOUSLY ANNOUNCED CAPITAL EXPENDITURE PROGRAM OF APPROXIMATELY USD 250 MILLION FOR 2020

* TOTAL AVAILABLE LIQUIDITY AS OF END FEBRUARY 2020 AMOUNTED TO USD 184.5 MILLION IN CASH WITH NO DEBT

* DUSSAFU DAILY OPERATIONS CONTINUE TO PERFORM IN LINE WITH EXPECTATIONS WITH FOUR WELLS PRODUCING TO FPSO BW ADOLO AT A CURRENT RATE OF APPROXIMATELY 20,000 BBL/DAY OIL PRODUCTION (GROSS)

* TOTAL DUSSAFU PRODUCTION FOR 2020 IS PROJECTED TO BE 16,000 - 18,500 BBLS/DAY (GROSS) BASED ON FIVE PRODUCING WELLS, COMPARED TO 11,800 BBLS/DAY ON AVERAGE IN 2019 Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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