Kosmos Energy Provides Operational Update
DALLAS, Jul 05, 2011 (BUSINESS WIRE) --
Kosmos Energy (NYSE: KOS) today provided an update on the company's operations in Ghana, Cameroon and Morocco.
Kosmos will drill an additional well as part of its 2011 exploration campaign offshore the Republic of Ghana on the West Cape Three Points Block. The company has secured additional rig capacity on the "Transocean Marianas" semi-submersible rig to drill the Cedrela-1 well west of the Makore prospect near the block's southern boundary. The well will target multiple objectives that the company previously has encountered on the block and is located nine kilometers (km) (six miles) north of the Paradise-1 discovery well recently announced by Hess Corporation (NYSE: HES). Kosmos anticipates that the well will be spudded in the third quarter of 2011.
The "Atwood Hunter" semi-submersible rig currently is drilling the Makore-1 exploration well in the southern portion of the West Cape Three Points Block. The Makore-1 well is targeting Upper Cretaceous Turonian-age reservoirs similar to those encountered in Kosmos' Jubilee oil field. The "Atwood Hunter" will remain on the West Cape Three Points Block to drill the Akasa-1 well, formerly known as the Dahoma Up-dip prospect.
The drilling of the Cedrela-1 well will bring Kosmos' 2011 capital spending budget for Ghana to $430 million, $260 million of which will be spent on exploration and appraisal drilling.
Kosmos is the operator of the West Cape Three Points Block in which the company holds a 30.875% interest. An affiliate of Anadarko Petroleum Corporation has a 30.875% interest; an affiliate of Tullow Oil plc has a 22.896% interest; E.O. Group Limited has a 3.5% interest; Sabre Oil & Gas Holdings Limited has a 1.854% interest; and Ghana National Petroleum Corporation has a 10% carried interest.
Kosmos reports that the company's N'gata-1 exploration well, recently drilled onshore Cameroon on the Kombe-N'sepe Block, encountered multiple reservoirs containing subcommercial quantities of natural gas. The results of drilling, wireline logs and reservoir fluid samples show the N'gata-1 well penetrated 44 meters (144 feet) of reservoir with 10 meters (33 feet) of net gas-bearing pay. An additional deeper thick sand interval with gas shows was encountered, but complete wireline logs were unable to be obtained over this target due to operational difficulties. The well has been plugged and abandoned. Kosmos has now completed its initial drilling program commitment on the Kombe-N'sepe Block. This program has demonstrated viable reservoirs and a working hydrocarbon system. Future technical evaluation will focus on identifying these play elements in areas of the block where liquid content and trap effectiveness may improve.
Kosmos Energy holds a 35% interest in the Kombe-N'sepe Block. Perenco operates the block with a 40% interest, and Société Nationale des Hydrocarbures (SNH) has a 25% interest in the block.
Kosmos has entered into a petroleum agreement with the Office National des Hydrocarbures et des Mines (ONHYM), the national oil company of Morocco, covering the Foum Assaka area offshore the Kingdom of Morocco. The agreement will become effective upon publication of a ministerial order in accordance with Moroccan law. The Foum Assaka area, which covers approximately 6,500 square kilometers (1,606,179 acres), is located in the Atlantic Ocean's Agadir Basin about 43 kilometers (27 miles) west of the port city of Agadir and contains play elements similar to those seen in Kosmos' other West African acreage. Kosmos will be block operator and will have a 37.5% participating interest in the agreement. ONHYM will have a 25% interest that will be carried through the exploration phase, and Pathfinder Hydrocarbon Ventures Limited will hold the remaining 37.5% participating interest.
About Kosmos Energy
Kosmos Energy Ltd. (NYSE: KOS) is an international oil and gas exploration and production company focused on underexplored regions in Africa. The company's asset portfolio includes major discoveries and exploration prospects with significant hydrocarbon potential in several West African countries. For additional information, visit www.kosmosenergy.com.
Except for the historical information contained herein, the matters set forth in this news release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.The company intends that all such statements be subject to the "safe-harbor" provisions of those Acts.Many important risks, factors and conditions may cause the company's actual results to differ materially from those discussed in any such forward-looking statement.These risks include, but are not limited to, estimates or forecasts of reserves, estimates or forecasts of production, future commodity prices, exchange rates, interest rates, geological and political risks, drilling risks, product demand, transportation restrictions, the ability of the company to obtain additional capital, and other risks and uncertainties described in the company's filings with the Securities and Exchange Commission.The historical results achieved by the company are not necessarily indicative of its future prospects.The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Kosmos Energy Ltd.
Kosmos Energy Ltd.
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