Kosmos Energy announces today that it has added a second block
offshore the Republic of Ghana to the company's West African portfolio
and has secured partners on both blocks. Kosmos and its partners have
a rig under contract and plan to drill an exploratory well in 2007.
Kosmos' Ghanaian affiliate, Kosmos Energy Ghana HC, has signed a
petroleum agreement covering the Deepwater Tano Block offshore Ghana
in the Gulf of Guinea's Tano Basin. Kosmos and its partners will
reprocess about 1,100 square kilometers of 3D seismic data and
evaluate other technical information as part of the initial phase of
the six-and-a-half year exploration agreement.
Kosmos and its partners will utilize the "Belford Dolphin" - a
dynamically positioned generation-5 deepwater drillship under
long-term contract to Anadarko - to drill a well on the West Cape
Three Points Block, also in the Tano Basin. The partners expect to
spud the well during the second quarter of 2007. The block's
seven-year exploration agreement calls for an exploratory well after a
3D seismic survey, which was acquired in 2005.
"We have expanded our asset base in West Africa by acquiring an
interest in a second block offshore Ghana, which reaffirms our
confidence in the upside potential of the Tano Basin," said James C.
Musselman, Kosmos Chairman and Chief Executive Officer. "We are
excited about drilling our first well offshore Africa since Kosmos was
established in 2003. It is extremely fitting that it is located in
this highly prospective region of Ghana.
"We welcome Tullow and Anadarko, our new partners, who are
collaborating with us in our Ghanaian venture. They are strong E&P
companies who bring vast experience in and a commitment to Africa and
are valuable members of our team," Musselman said. "We are pleased to
work with the Ghana National Petroleum Corporation, an organization
with a talented technical staff. We are dedicated to building a solid,
long-term business relationship with the Ghanaian government as we
help Ghana develop its natural resources."
Farmout Details
Kosmos farmed out half of its initial 36% interest in the
Deepwater Tano Block to Anadarko WCTP Company, an affiliate of
Anadarko Petroleum Corporation (NYSE:APC), which now holds an 18%
interest. Other partners in the block include Tullow Ghana Limited, an
affiliate of Tullow Oil plc, 49.95% interest and operator, and Sabre
Oil and Gas Limited, 4.05% interest. With a 10% participating interest
in the project, the Ghana National Petroleum Corporation (GNPC) will
be carried through the exploration and development phases.
Kosmos also farmed out portions of its 86.5% interest in Ghana's
West Cape Three Points Block to Anadarko and Tullow. Kosmos remains
operator and now holds a 30.875% interest in the block. Anadarko has a
30.875% interest, Tullow has a 22.896% interest and Sabre a 1.854%
interest in the block. The E.O. Group, a Ghanaian oil and gas company,
holds a 3.5% interest in the block. With a 10% participating interest
in the project, GNPC will be carried through the exploration and
development phases.
Ghanaian Blocks' Statistics
The West Cape Three Points Block comprises 1,761 square kilometers
(435,200 acres) in water depths ranging from 50 meters to 1,800 meters
(approximately 165 feet to 5,900 feet). The block is about 12
kilometers (7.4 miles) from the Ghanaian coastline and 95 kilometers
(59 miles) southwest of the port city of Takoradi.
The Deepwater Tano Block is located west of and adjacent to the
West Cape Three Points Block. The Deepwater Tano Block comprises 1,106
square kilometers (273,298 acres) in water depths ranging from 200
meters to 2,060 meters (approximately 656 feet to 6,758 feet).
About Kosmos Energy
Kosmos Energy is a privately held international oil exploration
and production company with a focus in West Africa. Kosmos is led by a
seasoned management and technical team with extensive international
and West Africa experience, and a proven record of finding and
developing significant oil reserves. With the financial backing of
international private equity investors Warburg Pincus and Blackstone
Capital Partners, the company possesses significant financial and
operational capability to generate and participate in multiple
high-impact upstream projects. For additional information, visit
www.kosmosenergy.com.
