DALLAS--(BUSINESS WIRE)--Feb. 3, 2014--
Kosmos Energy Ltd. (“Kosmos”) (NYSE:KOS) announced today an oil and gas
reserve replacement ratio of 140% supported by increased oil reserves in
the Jubilee field. Additionally, the company reported a 2014 capital
spending plan of approximately $575 million.
2013 capital spend came in under budget at $425 million primarily
related to the deferral of certain development and appraisal activities
into 2014. As a result, the company’s overall liquidity position at
year-end 2013 was stronger than expected with cash and cash equivalents
of $598 million and total available liquidity of $1.2 billion.
“Our foundation as a self-funded explorer underlies our capital program
for the year as we continue the momentum we have created to deliver new,
meaningful value for our shareholders,” stated Brian F. Maxted, chief
executive officer and chief exploration officer at Kosmos. “In addition
to advancing our development projects in Ghana, we are highly focused on
our upcoming exploration drilling campaign. Further, we are continuing
to build and mature our potentially transformational exploration
2014 Capital Program
Ghana-related development and appraisal capital spending comprises
approximately two-thirds of the 2014 forecast program, with around $70
million of the Ghana expenditure ascribed to spending deferred from
2013. The remaining one-third is allocated for exploration activities
and reflects the benefits of last year’s farm-out initiatives in Morocco.
The company’s 2014 Ghana development and appraisal activity is targeted
at around $400 million, about equally divided between the Greater
Jubilee and TEN (Tweneboa, Enyenra and Ntomme) projects. This includes
funds for further development at Jubilee, including the remaining
activities associated with the Phase 1A development, facility upgrades,
and long-lead equipment and engineering for the next phase of
development, as well as additional appraisal activities for the
Mahogany, Teak and Akasa discoveries. The capital program also provides
funds for continued development at TEN.
As part of the company’s planned exploration activities, which total
approximately $175 million for the year, Kosmos expects to participate
in the drilling of two offshore exploration wells. The FA-1 well is
anticipated to spud on the Eagle prospect in the first half of 2014 on
the Foum Assaka Offshore block, and late in the year, the company plans
to spud a well on the Gargaa prospect in the Cap Boujdour Contract Area.
Each well is expected to take about three months to complete.
Additionally, two large 3D seismic surveys are planned, one in the
Tarhazoute Offshore block and the other in the Cap Boujdour Contract
Area. Exploration-based new venture activities are also included in the
Year-End 2013 Reserves
The company’s proved net reserves at the end of 2013 were 46.8 million
barrels of oil equivalent, an increase of 3.3 million barrels of oil
equivalent from year-end 2012. The year-end 2013 volumes include natural
gas reserves of 1.8 million barrels of oil equivalent, essentially
unchanged from the previous year, which represents only the gas
anticipated to be used for power generation on the Jubilee floating
production, storage and offloading (FPSO) vessel.
A reserve replacement ratio of 140%, on a net proved basis, was realized
in the Jubilee field at year-end 2013. The increase in reserves was
largely related to observed field performance and Phase 1A well results.
The company’s reported reserves are prepared by Netherland Sewell &
Associates, Inc., an independent reserve engineering firm.
About Kosmos Energy
Kosmos Energy is a leading independent oil and gas exploration and
production company focused on frontier and emerging areas along the
Atlantic Margin. The company’s asset portfolio includes existing
production and other major development projects offshore Ghana, as well
as exploration licenses with significant hydrocarbon potential offshore
Ireland, Mauritania, Morocco (including Western Sahara) and Suriname. As
an ethical and transparent company, Kosmos is committed to doing things
the right way. The company’s Business
Principles articulate our commitment to transparency, ethics, human
rights, safety and the environment. Read more about this commitment in
the Kosmos 2012
Corporate Responsibility Report. Kosmos is listed on the New York
Stock Exchange and is traded under the ticker symbol KOS. For additional
information, visit www.kosmosenergy.com.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that Kosmos expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Kosmos’ estimates and forward-looking statements are
mainly based on its current expectations and estimates of future events
and trends, which affect or may affect its businesses and operations.
Although Kosmos believes that these estimates and forward-looking
statements are based upon reasonable assumptions, they are subject to
several risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or
other similar words are intended to identify forward-looking statements.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Kosmos, which may
cause actual results to differ materially from those implied or
expressed by the forward-looking statements. Further information on such
assumptions, risks and uncertainties is available in Kosmos’ Securities
and Exchange Commission (“SEC”) filings. Kosmos undertakes no
obligation and does not intend to update or correct these
forward-looking statements to reflect events or circumstances occurring
after the date of this press release, except as required by applicable
law. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their
entirety by this cautionary statement.
Source: Kosmos Energy Ltd.
Kosmos Energy Ltd.
Thomas Golembeski, +1-214-445-9674