DALLAS--(BUSINESS WIRE)--Feb. 4, 2015--
Kosmos Energy (NYSE: KOS) announced today that it has entered into a
farm-out agreement with Chevron Mauritania Exploration Limited, a wholly
owned subsidiary of Chevron Corporation (NYSE: CVX), covering the C8,
C12 and C13 contract areas offshore Mauritania. Under the terms of the
agreement, Chevron will acquire a 30 percent non-operated working
interest in each of the C8, C12 and C13 contract areas in exchange for
paying a disproportionate share of the costs of one exploration well and
a second contingent exploration well, subject to maximum expenditure
caps. In addition, Chevron will pay its proportionate share of
previously incurred exploration costs. Chevron will not initially fund
drilling of the Tortue prospect, but retains the option to participate
in this prospect after the transaction is completed. The transaction is
subject to customary closing conditions, including Mauritanian
government approval.
Andrew G. Inglis, chairman and chief executive officer, said: “This
agreement with Chevron validates the quality and scale of our Mauritania
licenses, which enabled us to successfully farm out the acreage despite
the current environment. The terms are consistent with our business
strategy of retaining operatorship through exploration and collaborating
with industry leading partners who bring significant technical expertise
and strong financial capabilities.”
On closing the transaction, the interests in the three contract areas
will be as follows, with Société Mauritanienne Des Hydrocarbures et de
Patrimoine Minier (“SMHPM”), the national oil company, having a carried
interest:
|
Kosmos
Chevron
SMHPM
|
|
|
|
60% (Operator)
30%
10%
|
Kosmos’ 2015 exploration work program in Mauritania currently includes
two wells to be drilled by the Atwood Achiever drillship. The first
exploration well will test the Tortue prospect, with estimated resources
of approximately 2 billion barrels of oil equivalent recoverable across
both Mauritania and Senegal. A second exploration well will test the
Marsouin prospect with estimated resources of approximately 300 million
barrels of oil equivalent recoverable, replacing the previously
announced Orca prospect in the 2015 drilling program.
Kosmos has held rights to conduct exploration in the C8, C12 and C13
contract areas since 2012 under production sharing contracts with the
Government of Mauritania. The blocks are contiguous, range in water
depth between 1,600 and 3,000 meters, and have combined acreage of
approximately 27,200 square kilometers.
About Kosmos Energy
Kosmos Energy is a leading independent oil and gas exploration and
production company focused on frontier and emerging areas along the
Atlantic Margin. Our assets include existing production and other major
development projects offshore Ghana, as well as exploration licenses
with significant hydrocarbon potential offshore Ireland, Mauritania,
Morocco (including Western Sahara), Senegal and Suriname. As an ethical
and transparent company, Kosmos is committed to doing things the right
way. The company’s Business
Principles articulate our commitment to transparency, ethics, human
rights, safety and the environment. Read more about this commitment in
the Kosmos 2013
Corporate Responsibility Report. Kosmos is listed on the New York
Stock Exchange and is traded under the ticker symbol KOS. For additional
information, visit www.kosmosenergy.com.
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’ Securities
and Exchange Commission (“SEC”) 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
Kosmos Energy
Investor Relations
Neal Shah, +1-214-445-9628
nshah@kosmosenergy.com
or
Media
Relations
Thomas Golembeski, +1-214-445-9674
tgolembeski@kosmosenergy.com
