Kosmos Energy Announces 2013 Capital Program and Production Outlook
Jubilee Field Production to Average Between 105,000 and 115,000 Barrels of Oil
DALLAS -- January 28, 2013
Kosmos Energy (“Kosmos”) (NYSE: KOS) announced today its 2013 planned capital
program, which totals approximately $525 million. Development activities
offshore Ghana comprise approximately 55 percent of the total anticipated
amount, with the remaining 45 percent allocated for exploration and appraisal
activities across Kosmos’ global exploration portfolio.
In addition, the Company estimates Jubilee field production to average between
105,000 and 115,000 barrels of oil per day in 2013, with the midpoint of the
range representing an increase of greater than 50 percent from the 2012
average. Kosmos anticipates a year-end exit rate for 2013 to be above the high
end of its annual guidance range. Included in the estimate is a planned
two-week shutdown for regular maintenance at the Jubilee floating production,
storage, and offloading vessel (FPSO).
Kosmos’ net interest in the estimated 2013 production average is approximately
25,150 barrels of oil per day, at the midpoint of the range. Based on the
Company’s crude oil inventory position at the beginning of the year and its
expected net portion of 2013 production, Kosmos anticipates selling nine crude
oil cargoes during the year. Each crude oil cargo sold represents slightly
less than one million barrels of oil and is anticipated to continue trading
consistent with Brent crude pricing.
Brian F. Maxted, Chief Executive Officer, stated, “Kosmos’ strategy of organic
growth through exploration and development success is highlighted by our 2013
capital program. Our plans for the year include advancing the development of
the world-class Jubilee field, as well as further progressing our other
discoveries offshore Ghana. Jubilee continues to demonstrate outstanding
performance, with current field deliverability substantially above the FPSO
capacity. This is a result of resolving the original well productivity issues
and completing new Phase 1A wells, which are showing tremendous delivery.
Throughout the year, we are challenging the Jubilee teams to identify
opportunities to meaningfully enhance throughput of the production facility,
allowing us to bring forward substantial value from the field.”
“Elsewhere, we are highly focused on maturing our existing exploration assets
to the drilling phase and continuing the build-out of a world-class portfolio
of impactful exploration opportunities. Key to our plans for 2013 and beyond
is the ability to internally fund our planned investment programs, a result of
the successes we have had to date, combined with our disciplined approach to
capital spending. We are strongly positioned, both financially and
operationally, to continue the momentum we have created and deliver new
meaningful value for our shareholders,” Maxted added.
Kosmos’ estimated development program, which totals approximately $290
million, includes funds for further development at Jubilee, with the majority
relating to the ongoing implementation of Phase 1A at the field. The Company
estimates finalizing the drilling and completion of all Jubilee Phase 1A
production and water injection wells by the middle part of the year. Our 2013
capital program also provides funds for the initiation of development at TEN
(Tweneboa, Enyenra, and Ntomme), as well as additional appraisal activities
and development studies for Mahogany, Teak, and Akasa. The TEN plan of
development, which represents Kosmos’ second major project development, has
been submitted to the government of Ghana and is awaiting approval.
As part of the Company’s planned exploration and appraisal activities, which
total approximately $235 million, Kosmos is participating in two near-term
exploration wells. Among these is the Sapele prospect, which is currently
drilling on the Deepwater Tano Block offshore Ghana, with results expected by
the end of February 2013. In addition, the Company anticipates spudding the
Sipo-1 prospect, which is located onshore Cameroon on the Ndian River Block,
in early February. Results from Sipo-1 are anticipated around the end of the
first quarter 2013.
On the Company’s offshore Morocco licenses, Kosmos’ planned capital program
provides for additional geologic studies, as well as further processing and
interpreting of 3D data already acquired on the Agadir Basin Blocks. Included
in the 2013 capital program are funds for the completion of the Company’s
acquisition of an additional 37.5 percent interest in the Essaouira Block,
which was previously announced. First drilling offshore Morocco is targeted to
commence as early as late 2013.
In Mauritania, Kosmos anticipates commencing a large 2D seismic survey in the
first half of the year, to be followed by a 3D seismic program later in 2013.
Offshore Suriname, the Company anticipates additional spending related to the
processing and interpreting of a 3D seismic survey which was acquired in late
Also included in the anticipated exploration program for 2013 is an amount for
new business opportunities, with the majority allocated for seismic
expenditures in the current year.
One of the Company’s strategic goals in 2013 is to secure important
co-venturer arrangements in several of its exploration areas. The announced
2013 capital program excludes the impacts of any completed farm-outs during
About Kosmos Energy
Kosmos Energy is a leading independent oil and gas exploration and production
company focused on frontier and emerging areas in Africa and South America.
The Company’s asset portfolio includes existing production and other major
project developments offshore Ghana, as well as exploration licenses with
significant hydrocarbon potential offshore Mauritania, Morocco and Suriname
and onshore Cameroon. Kosmos is listed on the New York Stock Exchange and is
traded under the ticker symbol KOS. For additional information, visit
This press release contains forward-looking statements within the meaning of
Section27A of the Securities Act of 1933 and Section21E 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.
Brad Whitmarsh, +1-214-445-9772
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