Kosmos Energy Finalizes Offshore Agadir Farm-Out Agreements with BP

  Kosmos Energy Finalizes Offshore Agadir Farm-Out Agreements with BP

      Kosmos signs petroleum agreement for the Tarhazoute Offshore block

Business Wire

DALLAS -- October 15, 2013

Kosmos Energy (NYSE: KOS) today announced that it has entered into three
farm-out agreements with BP plc (LSE: BP) (NYSE: BP), covering three blocks in
the Agadir Basin, offshore Morocco. Under the terms of the agreements, BP will
acquire a non-operating interest in each of the Essaouira Offshore, Foum
Assaka Offshore and Tarhazoute Offshore blocks. BP will fund Kosmos’ share of
the cost of one exploration well in each of the three blocks, subject to a
maximum cost per well. In the event a second exploration well is drilled in
any block, BP shall pay a disproportionate share of the well cost subject to a
maximum cost per well. BP shall also pay its proportionate share of past
costs. Completion of the transactions is subject to customary closing
conditions, including Moroccan Government approvals.

Kosmos also announces that it has recently signed a petroleum agreement with
the Office National des Hydrocarbures et des Mines (ONHYM) covering the
Tarhazoute Offshore block, previously held under a reconnaissance contract
since 2011. The Tarhazoute block is contiguous with the Essaouira and Foum
Assaka blocks and will allow integrated exploration over a significant portion
of the Agadir Basin, one of the last remaining underexplored salt basins along
the Atlantic Margin.

Brian F. Maxted, Chief Executive Officer, Kosmos Energy, commented: “The
Agadir Basin farm-out along with the petroleum agreement for Tarhazoute mark
significant and important forward steps for Kosmos in Morocco as we prepare to
commence drilling in the first half of 2014. We are delighted that BP will be
joining this venture as they add significant value to our operations,
particularly given their proven success in salt basin exploration and
production.”

On closing of the transaction, the interests in the three blocks will be as
follows, with ONHYM having a carried interest through the exploration period:

Essaouira:      Kosmos        30.0% (Operator)
                   BP               45.0%
                   ONHYM            25.0%
                                    
Foum Assaka:       Kosmos           29.925% (Operator)
                   BP               26.325%
                   Pathfinder       18.750%
                   ONHYM            25.000%
                                    
                                    
Tarhazoute:        Kosmos           30.0% (Operator)
                   BP               45.0%
                   ONHYM            25.0%
                                    

The three contiguous blocks cover approximately 25,000 km2 and water depths
range up to 3,000 meters. Pathfinder Hydrocarbon Ventures Limited is a
wholly-owned subsidiary of Fastnet Oil & Gas plc (AIM: FAST).

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. The
Company’s asset portfolio includes existing production and other major
development projects offshore Ghana, as well as exploration licenses with
significant hydrocarbon potential offshore Ireland, Mauritania, Morocco 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 2012 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
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.

Contact:

Kosmos Energy
Investor Relations
Jon Cappon, +1-214-445-9669
jcappon@kosmosenergy.com
or
Media Relations
David Webster, +1-214-263-7301
dwebster@kosmosenergy.com
 
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