Kosmos Energy Establishes New Exploration Positions in Porcupine Basin, Offshore Ireland
Kosmos
Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today that it has
entered into two farm-in agreements, whereby Kosmos is acquiring an
interest in multiple blocks in the prospective Porcupine Basin, offshore
the west coast of Ireland. The farm-in agreements were executed with
Antrim Energy Inc. (“Antrim”) covering Licensing Option 11/5 and with
Europa Oil & Gas (Holdings) plc (“Europa”) covering Licensing Options
11/7 and 11/8.
Per the agreement with Antrim, Kosmos is acquiring a 75 percent
participating interest and operatorship in the approximately 1,410
square kilometer Licensing Option 11/5 in exchange for carrying the full
costs of a planned 3D seismic program on the block. In addition, the
Company will reimburse Antrim for a portion of previously-incurred
exploration costs.
Kosmos is also acquiring an 85 percent participating interest and
operatorship in Licensing Options 11/7 and 11/8, an area totaling 2,000
square kilometers, in a separate agreement with Europa. According to
terms of the agreement, Kosmos will fully fund a planned 3D seismic
program on each block and will reimburse Europa for a portion of its
previously-incurred exploration costs. Contingent upon an election by
Kosmos and Europa to enter into a subsequent exploration drilling phase
on one or both of the blocks, Kosmos will also fund 100 percent of the
costs of the first exploration well on each block, subject to an
investment cap. The per-well investment cap for the first well is $90
million on Licensing Option 11/7 and $110 million on Licensing Option
11/8.
Paul Dailly, Senior Vice President and Chief Geoscientist, commented,
“The addition of these highly-prospective blocks offshore Ireland
represents further opportunity to leverage our understanding of
Cretaceous-age combination structural-stratigraphic plays in overlooked
and underexplored basins. With a number of significant leads already
identified on 2D, our plans are to commence 3D seismic acquisition over
portions of these deepwater acreage positions later in 2013, subject to
finalizing the areas as Frontier Exploration Licenses. Combined with our
positions offshore Morocco, Mauritania, and Suriname and onshore
Cameroon, we are building out a premier exploration portfolio and
exposing Kosmos to substantial upside exploration value.”
The completion of the farm-in agreements remains subject to Irish
government approval and other customary closing conditions. Following
approval, Kosmos and co-venturers will pursue converting the Licensing
Options to Frontier Exploration Licenses and seek approval of a work
program.
A map of the acreage will be available under the Operations tab at www.kosmosenergy.com.
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 project developments offshore Ghana, as well
as exploration licenses with significant hydrocarbon potential offshore
Ireland, 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 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 the Company expects,
believes or anticipates will or may occur in the future are
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