Kosmos Energy Announces 2014 Production Outlook
Jubilee Field Unit Operator Provides Revised Production Forecast
DALLAS -- January 15, 2014
Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today that Tullow Oil plc
(LSE: TLW), the operator of the Jubilee field, has provided a revised
production forecast of 100,000 barrels of oil per day (Bopd) for the full year
2014. This rate allows for a potential two-week shutdown for regular
maintenance at the Jubilee floating production, storage, and offloading vessel
Based on the operator’s revised production guidance, Kosmos’ net interest in
the field’s 2014 production is approximately 24,100 Bopd, similar to 2013 net
production levels. As a result, Kosmos currently expects to sell eight crude
oil cargoes during 2014.
The revised forecast is unrelated to reservoir performance and well
productivity, which remain strong. The new forecast primarily stems from the
recently completed third gas injection well which started up in the fourth
quarter of 2013 and provided minimal relief. Additionally, delays in restoring
full water injection during 2013 further compounded the gas handling
challenges. Restoration of full water injection was achieved late in the
Short, medium and longer-term options to ameliorate the situation in the best
interest of all stakeholders are being discussed with Ghanaian authorities.
The Ghana National Gas Company’s Western Corridor Gas Infrastructure system is
currently expected to be ready to receive gas from the Jubilee field in late
2014. Achievement of the revised production forecast is contingent on the
timely resolution of these matters.
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.
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’s 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’s 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.
Kosmos Energy Ltd.
Jon Cappon, +1-214-445-9669
Thomas Golembeski, +1-214-445-9674
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