Kosmos Energy Finalizes Cap Boujdour Farm-out with Cairn Energy

  Kosmos Energy Finalizes Cap Boujdour Farm-out with Cairn Energy

Business Wire

DALLAS -- October 28, 2013

Kosmos Energy (NYSE:KOS) today announced that it has entered into a farm-out
agreement with Capricorn Exploration & Development Company Limited, a
wholly-owned subsidiary of Cairn Energy PLC (LSE:CNE), covering the Cap
Boujdour Contract Area. Under the terms of the agreement, Cairn will acquire a
20% non-operated interest in the exploration permits comprising the Contract
Area. Cairn will pay a disproportionate share of future exploration costs
including a 3D seismic survey, an initial exploration well in 2014 and, if
successful, two appraisal wells, all subject to maximum expenditure caps.
Completion of the transaction is subject to customary closing conditions,
including Moroccan Government approvals.

Brian F. Maxted, Chief Executive Officer of Kosmos Energy, commented, “Our
farm-out with Cairn marks a significant step forward for Kosmos as we continue
to advance our exploration plans while retaining a strategic position in the
block and operatorship in one of the last undrilled petroleum systems along
the Atlantic Margin. This agreement is consistent with our strategy of
bringing industry leading partners such as Cairn who have significant
technical expertise, strong financial capabilities and a proven management
team to the Cap Boujdour project. This concludes the pre-drill farm out of our
Moroccan assets.”

Simon Thomson, Chief Executive of Cairn Energy commented, "This new acreage
offers significant potential in a region where Cairn is already well
established. We are delighted to be working with Kosmos who are a proven and
valuable operating partner with a track record of exploration success in this
play type along the West African margin. The farm-in builds on our existing
Atlantic Margin portfolio where we have a strategic presence across three
countries in Morocco, Senegal and Mauritania and has commenced a twelve month
multi-well high impact frontier exploration program that will potentially
offer shareholders material growth."

On closing of the transaction, the interests in the block will be as follows
with the Office National des Hydrocarbures et des Mines (ONHYM), having a
carried interest through the exploration period:


Kosmos                55.0% (Operator)
Cairn (Capricorn)         20.0%
ONHYM                     25.0%
                          

Kosmos has held rights to conduct exploration activities in the Cap Boujdour
Contract Area since 2006 under a petroleum agreement with ONHYM. The Cap
Boujdour Contract Area comprises 29,740 square kilometers located
approximately 70 kilometers offshore Western Sahara.

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
(including Western Sahara) 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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