Kosmos Energy Announces Intention to Pursue Secondary Listing on the London Stock Exchange
Company to maintain primary listing on
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 Africaduring 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
Mauritaniaand Senegalin 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 Mauritaniaand Senegalat a 100% success rate.
December 2016, Kosmos announced a partnership with BP in Mauritaniaand Senegalfollowing 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- Senegalexploration 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 billionin 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
Ghana. During the first half of 2017, gross sales volumes from Ghanaaveraged 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
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
NYSEin 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
Londonlisted peers currently attract.
- As a result, the listing is expected to broaden Kosmos’ international investor base.
“This secondary listing is the next step in the company’s evolution. Our
The listing process is expected to be completed later in the third quarter of 2017.
Notes to Editors
The business strategy focuses on achieving four key objectives: (1)
maximise the value of the
Principal Activities and Markets
Kosmos currently has operations in
The West Cape Three Points (“WCTP”) Block and the Deepwater Tano (“DT”)
Block are located within the
Kosmos holds a 28% participating interest and BP (the operator) holds a
62% participating interest in four blocks offshore
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
During 2015 and 2016, Kosmos acquired acreage in Blocks 5, 6, 11 and 12
Kosmos’ petroleum contracts in
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
The contents of this announcement, which has been prepared by and is the
sole responsibility of the Company, have been approved by
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’
View source version on businesswire.com: http://www.businesswire.com/news/home/20170801006871/en/
Neal Shah, +1-214-445-9628
Rhys Williams, +1-214-445-9693
Thomas Golembeski, +1-214-445-9674
Charlie Pretzlik/Stuart Donnelly, +44 207 404 5959
BMO Capital Markets
Financial Advisor to the listing and Corporate Broker
Jeremy Low, Neil Haycock, Thomas Rider, +44 207 236 1010