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Kosmos Energy Announces Intention to Pursue Secondary Listing on the London Stock Exchange

08/02/17 06:00 GMT

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 Africa.
  • In 2011, Kosmos undertook an initial public offering of its shares, with trading beginning on the New York Stock Exchange (“NYSE”) on 11 May 2011.
  • 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 environment.
  • 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 investor base.

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

About Kosmos

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 Sahara.

Business Strategy

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 petroleum systems.

Principal Activities and Markets

Kosmos currently has operations in Africa and South America. Currently, all operating revenues are generated from operations offshore Ghana.

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 its blocks.

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.

Suriname

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.

Disclaimer

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 amended.

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 therewith.

Forward-Looking Statements

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.

Source: Kosmos Energy Ltd.

Kosmos Energy
Investor Relations
Neal Shah, +1-214-445-9628
nshah@kosmosenergy.com
or
Rhys Williams, +1-214-445-9693
rwilliams@kosmosenergy.com
or
Media Relations
Thomas Golembeski, +1-214-445-9674
tgolembeski@kosmosenergy.com
or
Charlie Pretzlik/Stuart Donnelly, +44 207 404 5959
cpretzlik@brunswickgroup.com
sdonnelly@brunswickgroup.com
or
BMO Capital Markets
Financial Advisor to the listing and Corporate Broker
Jeremy Low, Neil Haycock, Thomas Rider, +44 207 236 1010

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