DALLAS--(BUSINESS WIRE)--Mar. 1, 2012--
Energy (NYSE: KOS) announced today its 2012 organic capital program,
which totals approximately $600 million. Exploration and appraisal
activities represent approximately 55 percent of the amount, with
development comprising the remaining 45 percent. Over 90 percent of the
2012 program is anticipated to be invested in Ghana.
Brian F. Maxted, President and Chief Executive Officer, stated, “Our
2012 capital program is highly focused on furthering our exploration
program to identify and discover substantial new petroleum systems, as
well as enhancing the value of our existing assets. Offshore Ghana, we
are continuing to advance the development of Jubilee, and we are taking
significant steps toward the next major project developments. Our
appraisal and exploration drilling program is substantial, with plans to
participate in nine new wells in 2012, including a number of high impact
exploration prospects. In addition, we have the potential to expand this
program with additional contingent wells. In our current portfolio
outside of Ghana, we are planning, acquiring and processing important 3D
seismic in newly acquired petroleum systems such as Morocco and
Suriname, and our teams are preparing to commence our first operated
well onshore Cameroon late in the year. We are continuing to identify
new petroleum system opportunities for Kosmos, and I expect that we will
capture additional new ventures in 2012 that strategically fit with our
overall growth strategy. Kosmos is well-positioned to execute our growth
programs and further build substantial value for our shareholders.”
As part of an integrated appraisal and delineation program for the
Company’s discoveries on the West Cape Three Points Block, offshore
Ghana, Kosmos anticipates drilling at least two appraisal wells at the
Teak discovery and one appraisal well at the Mahogany discovery in 2012.
In addition, the Company targets performing multiple flow tests and
reservoir studies for the Teak, Mahogany, Akasa, and Banda discoveries.
On the Deepwater Tano Block, offshore Ghana, the Company is planning to
participate in two appraisal wells in 2012, as well as certain flow
tests and well activities, at the Enyenra and Ntomme oil discoveries. A
plan of development for the Tweneboa/Enyenra/Ntomme area is expected to
be submitted for governmental approval in 2012.
Kosmos also anticipates participating in at least four new exploration
wells in 2012, with three located offshore Ghana and one onshore
Cameroon. Offshore Ghana, the Company anticipates drilling the Deepwater
Sapele, Wawa, and Turonian Deep (also known as ‘Tweneboa Deep’)
prospects on the Deepwater Tano Block, which have net unrisked mean
resources of more than 100 million barrels of oil equivalent combined.
In Cameroon, the Company plans to commence the Sipo well (testing the
Liwenyi prospect) on the Ndian River Block late in 2012. Sipo is a 150
million barrel of oil equivalent prospect, net unrisked mean.
Also included in the Company’s planned exploration program are
significant 3D seismic acquisitions in its positions offshore Morocco
and Suriname. First drilling is planned as early as 2013 for Morocco and
2014 for Suriname.
The Company’s planned development investments are primarily composed of
ongoing activities at the first phase of Jubilee, as well as
implementation of the next development phase at the field, Phase 1A. As
part of its production enhancement program, Kosmos anticipates
performing up to three sidetracks of existing Phase 1 wells in 2012, as
well as certain alternative production enhancement methods. The Phase 1A
program provides for five new production wells, three water injection
wells, and additional subsea infrastructure. By the end of the year, the
Company anticipates four production wells and one injection well to be
online. Kosmos anticipates gross production at Jubilee to average
between 70,000 and 90,000 barrels of oil per day in 2012. This
production range equates to between 6 and 8 Kosmos liftings in 2012.
As previously announced, the Company has exercised a right to acquire an
additional 4.05 percent interest in the Deepwater Tano Block, offshore
Ghana, which increases the Company’s Jubilee field interest by 1.75
percent. The impact of the increased share on the Company’s organic
capital program will be an incremental $40 million, subject to the
closing of the transaction, which is expected in the second quarter 2012.
Conference Call and Webcast Information
Kosmos will host a conference call and webcast to discuss year-end 2011
financial and operating results, as well as the 2012 capital program and
guidance, today at 10:00 a.m. Central time (11:00 a.m. Eastern time).
Interested parties can access a live webcast on the Investors page of
Kosmos’ website at www.kosmosenergy.com.
The dial-in telephone number for participation in the call is
+1.877.407.3982. Callers outside the United States should dial
+1.201.493.6780. A replay of the conference call will be available on
the Investors page of Kosmos’ website.
About Kosmos Energy
Kosmos Energy Ltd. is a leading independent oil and gas exploration and
production company focused on frontier and emerging areas in Africa and
South America. The Company’s asset portfolio includes existing
production, major discoveries and exploration prospects offshore Ghana,
as well as exploration licenses with significant hydrocarbon potential
offshore Morocco and Suriname and onshore Cameroon. 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 the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. The Company’s 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 the Company 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 the Company. 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 the Company, 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 the Company’s Securities and Exchange
Commission (“SEC”) filings. The Company’s SEC filings are
available on the Company’s website at www.kosmosenergy.com.
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