Potential Farmout/JV Partners, page-24

Ooops BG Gas should be BW Energy - like others I am on holiday and struggling digitally!

BW Energy has signed a Letter Agreement (“LA”) with Reconnaissance Energy Africa Ltd (“ReconAfrica”) to acquire approximately 16.8 million common shares and 16.8 million warrants for a total consideration of USD 16 million in ReconAfrica’s announced equity raise. By participating in the equity raise, BW Energy will also receive a 20% non-operating interest in the onshore Petroleum Exploration License 73 (“PEL 73”) where ReconAfrica will provide BW Energy with a carry of USD 6.4 million based on the intended initial work program. BW Energy has also committed to certain contingent payments to ReconAfrica based on specific field development milestones.

BW Energy is progressing a revised development plan for the gas-to-power project that will utilize a repurposed semi-submersible drilling rig as a Floating Production Unit. Repurposing will enable an optimisation of the project timeline and significantly reduce capital investments compared to previous development concepts.The revised development concept offers tangible financial, schedule and environmental benefits. The re-use of existing facilities also supports a substantial reduction in field development related greenhouse gas emissions compared to a newly built facility. The revised integrated development plan aims to supply competitive power to a growing African market with significant upside potential.A development of the Kudu field is an attractive opportunity for BW Energy to engage in the electricity market and potentially fully or partially assume a position as an Independent Power Producer (IPP) through strategic partnering.