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Hibiscus reserve estimates raised after successful completion of drilling operations

BW Offshore is pleased to announce the successful completion of drilling operations on the Hibiscus Updip prospect in the Dussafu license. Both the exploration well and appraisal side-track encountered oil on the Hibiscus structure.

The DHIBM-1 exploration well was drilled by the Borr Norve jack-up drilling rig to a total depth of 3,538 meters in water depths of 116 meters. Evaluation of logging and sampling data has confirmed that the well has encountered approximately 21 meters of pay in an overall hydrocarbon column of 33 meters in the Gamba formation. The appraisal side-track (DHIBM-1 ST1), drilled 1,100 meters north-west of the original wellbore, encountered 26 meters of pay in the Gamba formation. The oil-water contact was at the same level in both wells, confirming continuity of the hydrocarbon deposit. 

Preliminary evaluation indicates gross recoverable reserves of 40 to 50 million bbls of oil, significantly greater than the pre-drill expectations.

“Hibiscus is the fourth consecutive oil discovery made on the Dussafu license with drilling operations completed safely and within budget,” said Carl K. Arnet CEO of BW Energy. “It is in line with our phased development strategy for long-term value creation at Dussafu through increased production and identifying additional resources. The Hibiscus discovery and its surrounding prospects represent another area of significant potential in the Dussafu block and we are looking forward to the next phase of the programme as we continue to unlock the potential of the Dussafu field.”

The DHIBM-1 well was designed to appraise one of several prospects that have been mapped in the greater Ruche area of the Dussafu license. The objective was to identify additional resources, which will be aggregated with the existing Ruche discovery and form the basis for future development. The company will complete the evaluation of the Hibiscus Updip discovery and evaluate the optimal commercial development.

The rig will now proceed to drill four subsea production wells on the Tortue field which will be tied back to BW Adolo, before drilling another exploration well.
  
For further information, please contact:

Knut R. Sæthre, CFO BW Energy, +47 911 17 876
Ståle Andreassen, CFO BW Offshore, +65 97 27 86 47

IR@bwoffshore.com

About BW Offshore:
BW Offshore is a leading provider of floating production services to the oil and gas industry. The company also participates in developing proven offshore hydrocarbon reservoirs. BW Offshore is represented in all major oil and gas regions world-wide with a fleet of 15 owned FPSOs. The company has more than 30 years of production track record, having executed 40 FPSO and FSO projects. BW Offshore is listed on the Oslo Stock Exchange.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.