Company to maintain primary listing on NYSE
DALLAS--(BUSINESS WIRE)--Aug. 2, 2017--
Kosmos Energy Ltd. (“Kosmos” or the “Company”), a leading independent
oil and gas exploration and production (“E&P”) company, today announces
its intention to pursue a secondary listing on the standard segment of
the Main Market of the London Stock Exchange (“LSE”).
Kosmos – Key Highlights
Founded in 2003, Kosmos is a leading independent oil and gas
exploration and production company focused on frontier and emerging
areas along the Atlantic Margins.
In 2007, Kosmos discovered the Jubilee Field offshore Ghana, one of
the largest oil discoveries offshore West Africa during the last
decade. Oil production began in 2010, just 42 months after discovery,
a record for a deepwater development in this water depth in West
In 2011, Kosmos undertook an initial public offering of its shares,
with trading beginning on the New York Stock Exchange (“NYSE”) on 11
Building on its initial success, Kosmos opened a new basin offshore
Mauritania and Senegal in 2015-2016 with major discoveries of natural
gas, including the Greater Tortue area. According to Kosmos’
estimates, it has now discovered approximately 40 trillion cubic feet
of gross pmean resource through the drilling of six consecutive
successful exploration and appraisal wells offshore Mauritania and
Senegal at a 100% success rate.
In December 2016, Kosmos announced a partnership with BP in Mauritania
and Senegal following a competitive farm-down process. As a result of
the transactions, Kosmos’ balance sheet has been strengthened by
materially reducing its capital expenditure requirements, effectively
funding its Mauritania-Senegal exploration and development work
program for the next several years. This includes three consecutive
high impact exploration wells beginning in the third quarter of 2017,
and the development of the Greater Tortue field.
Kosmos’ solid balance sheet with $1.2 billion in liquidity, low
leverage, and strong free cash flow generation has enabled management
to consistently execute its growth strategy in a low commodity price
Currently, all of Kosmos’ operating revenues are generated from its
operations offshore Ghana. During the first half of 2017, gross sales
volumes from Ghana averaged approximately 132,000 barrels of oil per
day (net: 26,900 bopd).
Background to and reasons for the listing
Kosmos has continued to develop since its IPO in 2011 and has now
become one of the few independent international E&P companies listed
in the United States. Consequently, the Company believes it is now the
right time to obtain a secondary listing on the LSE.
Kosmos benefits from a diverse and supportive shareholder base built
over a sustained period since listing on the NYSE in 2011. However,
Kosmos believes there are a number of European investment funds and
specialist international oil and gas investors that are currently
unable to hold Kosmos’ shares due to their listing outside of a
European regulated market.
Kosmos anticipates that the number of analysts providing independent
investment research on the Company will increase following the listing
of Kosmos’ shares on the LSE, in line with the level of analyst
coverage that the Company’s London listed peers currently attract.
As a result, the listing is expected to broaden Kosmos’ international
Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos Energy,
said: “We believe that Kosmos represents a compelling investment
proposition both in terms of its upcoming high-impact exploration
program and the development of recent gas discoveries. We have
experienced tremendous growth over the years driven by increasing
production and cash flow in Ghana and recent discoveries offshore
Mauritania and Senegal.
“This secondary listing is the next step in the company’s evolution. Our
NYSE listing has enabled Kosmos to attract blue chip investors and given
us access to significant opportunities. We selected the LSE for our
secondary listing because of its strong liquidity, reputation for
transparency, and participants’ knowledge of the role of frontier
exploration and development in our industry”.
The listing process is expected to be completed later in the third
quarter of 2017.
Notes to Editors
Kosmos Energy is a leading independent oil and gas exploration and
production company focused on frontier and emerging areas along the
Atlantic Margins. Its assets include existing production and development
projects offshore Ghana, large discoveries and significant further
exploration potential offshore Mauritania and Senegal, as well as
exploration licences with, Kosmos believes, significant hydrocarbon
potential offshore Suriname, Sao Tome and Principe, Morocco, and Western
The business strategy focuses on achieving four key objectives: (1)
maximise the value of the Ghana assets; (2) develop the discovered
resources offshore Mauritania and Senegal; (3) continue to explore,
appraise and develop the deepwater basin offshore Mauritania and Senegal
to further grow value; and (4) increase value further through a
high-impact exploration programme which is designed to unlock new
Principal Activities and Markets
Kosmos currently has operations in Africa and South America. Currently,
all operating revenues are generated from operations offshore Ghana.
The West Cape Three Points (“WCTP”) Block and the Deepwater Tano (“DT”)
Block are located within the Tano Basin, offshore Ghana. Discoveries to
date on licence areas offshore Ghana consist of: (1) the Jubilee field,
discovered by Kosmos in 2007, with first oil produced in November 2010.
Appraisal activities confirmed that the Jubilee discovery straddled the
WCTP and DT Blocks. Kosmos’ current unit interest is 24.1%; (2) the
Tweneboa, Enyenra and Ntomme (“TEN”) fields. In November 2012, Kosmos
submitted a declaration of commerciality and PoD over the TEN
discoveries. In May 2013, the government of Ghana approved the TEN PoD.
First oil came from the TEN fields in August 2016. The TEN discoveries
are being jointly developed with shared infrastructure and a single
floating production storage and offloading unit. The construction and
connection of a gas pipeline between the Jubilee and TEN fields to
transport natural gas to the mainland for processing was completed in
the first quarter of 2017; (3) the Mahogany discovery; (4) the Teak
discovery; (5) the Akasa discovery; and (6) the Wawa discovery.
Mauritania and Senegal
Kosmos holds a 28% participating interest and BP (the operator) holds a
62% participating interest in four blocks offshore Mauritania. Kosmos
has acquired approximately 6,300 line-kilometres of 2D seismic data and
21,750 square kilometres of 3D seismic data covering portions of the
four blocks in Mauritania, has drilled two successful exploration wells
and an appraisal well, and has identified numerous additional prospects
in its blocks.
Kosmos BP Senegal Limited (“KBSL”), a majority owned affiliate of Kosmos
(owned 50.01% by Kosmos and 49.99% by BP) is the operator of two blocks
offshore Senegal and owns 60% of participating interest. Kosmos has
acquired approximately 11,400 square kilometres of 3D seismic data
covering portions of the two blocks in Senegal, has drilled three
successful exploration wells and has identified numerous prospects in
Offshore Mauritania and Senegal, Kosmos has made the following
discoveries: (1) the Greater Tortue discovery, a play-opening gas
discovery for the outboard Cretaceous petroleum system. The Greater
Tortue discovery straddles Block C8 offshore Mauritania and Saint Louis
Offshore Profond offshore Senegal. Kosmos has now drilled three wells
within the Greater Tortue discovery; (2) the BirAllah discovery
(formally known as Marsouin) in Mauritania; (3) the Terenga discovery in
Senegal; and (4) the Yakaar discovery in Senegal.
Kosmos is the operator for petroleum contracts covering Block 42 and
Block 45 offshore Suriname, with a 33.3% and 50% participating interest
respectively. The blocks are located within the Guyana Suriname Basin,
along the Atlantic transform margin of northern South America. The
emerging petroleum system in Suriname has been proven by the presence of
onshore producing fields and most recently by nearby discoveries
offshore Guyana, including the Liza-1 well. Kosmos has identified
numerous prospects in its Suriname acreage and plans to drill up to two
wells in 2018.
Sao Tome and Principe
During 2015 and 2016, Kosmos acquired acreage in Blocks 5, 6, 11 and 12
offshore Sao Tome and Principe in the Gulf of Guinea. Kosmos is the
operator of Blocks 5, 11 and 12, and Galp, a wholly owned subsidiary of
Petrogal, S.A., is the operator of Block 6. Kosmos has approximately
1,250 line kilometres of 2D seismic covering portions of its blocks and
is currently acquiring approximately 16,000 square kilometres of 3D
seismic across its position. Kosmos has identified numerous leads in its
Sao Tome and Principe acreage.
Morocco and Western Sahara
Kosmos’ petroleum contracts in Morocco and Western Sahara include the
Boujdour Maritime block, which is within the Aaiun Basin, and the
Essaouira Offshore Block, which is within the Agadir Basin. Kosmos is
the operator of these petroleum contracts.
Further information can be found at www.kosmosenergy.com
No offer of securities
This announcement does not constitute an offer of securities for sale or
a solicitation of an offer to purchase securities in any jurisdiction
nor shall it (or any part of it) or the fact of its distribution, form
the basis of, or be relied on in connection with, any contract therefor.
No offer of shares of Kosmos Energy Ltd. will be made as part of the
listing and a prospectus for Kosmos Energy Ltd. will be issued solely in
connection with the admission of Kosmos’ shares to trading on the Main
Market for listed securities of the LSE.
The contents of this announcement, which has been prepared by and is the
sole responsibility of the Company, have been approved by BMO Capital
Markets Limited (“BMO Capital Markets”) solely for the purposes of
section 21(2)(b) of the Financial Services and Markets Act 2000, as
BMO Capital Markets is authorised and regulated by the FCA and is acting
exclusively for the Company and no one else in connection with the
listing, and will not regard any other person as their respective
clients in relation to the listing and will not be responsible to anyone
other than the Company for providing the protections afforded to their
respective clients nor for providing advice in relation to the listing,
the contents of this announcement or any transaction, arrangement or
other matter referred to herein.
None of BMO Capital Markets or any of its respective directors,
officers, employees, advisers or agents accepts any responsibility or
liability whatsoever for, or makes any representation or warranty,
express or implied, as to, the truth, accuracy or completeness of the
information in this announcement (or whether any information has been
omitted from the announcement) or any other information relating to the
Company, its subsidiaries or associated companies, whether written, oral
or in a visual or electronic form, and howsoever transmitted or made
available or for any loss howsoever arising from any use of this
announcement or its contents or otherwise arising in connection
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’ U.S.
Securities and Exchange Commission 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170801006871/en/
Source: Kosmos Energy Ltd.
Thomas Golembeski, +1-214-445-9674
Pretzlik/Stuart Donnelly, +44 207 404 5959
Financial Advisor to the listing and
Jeremy Low, Neil Haycock, Thomas Rider,
+44 207 236 1010