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:
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Kosmos
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30.0% (Operator)
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BP
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45.0%
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ONHYM
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25.0%
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Foum Assaka:
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Kosmos
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29.925% (Operator)
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BP
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26.325%
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Pathfinder
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18.750%
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ONHYM
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25.000%
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Tarhazoute:
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Kosmos
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30.0% (Operator)
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BP
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45.0%
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ONHYM
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25.0%
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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 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 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.
Copyright Business Wire 2013