Kosmos Energy Increases Reserves for Seventh Consecutive Year
12 February 2020 - 6:00PM
Business Wire
Kosmos Energy (NYSE/LSE: KOS) announced today that total 1P
reserves at year end 2019 were approximately 169 million barrels of
oil equivalent (MMBoe) and 2P reserves were approximately 552
MMBoe.
In addition, following the recent signing of the Sale and
Purchase Agreement (SPA) for the Phase 1 LNG offtake of the Greater
Tortue Ahmeyim project, Kosmos intends to book additional net 1P
reserves of approximately 100 MMBoe. Adjusting for these additional
volumes increases total 1P reserves to approximately 268 MMBoe.
"The quality of our diverse portfolio was demonstrated again in
2019 as Kosmos organically replaced approximately 106 percent of
production on a 1P basis, marking the seventh consecutive year of
greater than 100 percent of production replacement," said Andrew G.
Inglis, Chairman and Chief Executive Officer of Kosmos Energy. "In
addition, we reached another milestone in the Greater Tortue
Ahmeyim development with the signing of the Phase 1 SPA with BP Gas
Marketing, enabling Kosmos to book our 1P reserves for the project.
With a 1P reserve base of 268 MMBoe, split approximately 60% oil,
40% gas, we have a 1P reserve to production ratio of approximately
11 years, supporting growth with an increasing contribution of
gas."
(MMBoe)
1P Reserves
2P Reserves
Year-End 2018 Reserves
167
513
- Production
-24
-24
+Revisions
25
63
Year-End 2019 Reserves
169
552
+ Greater Tortue Ahmeyim Phase 1 1
100
n/a
Adjusted Current Reserves
268
552
Reserve Replacement Ratio 2
518%
265%
The increase in 1P reserves (excluding the impact of the Greater
Tortue Ahmeyim Phase 1 LNG SPA) is primarily driven by performance
in Ghana, where additional drilling has increased oil in place
estimates. Jubilee recent production performance has been impacted
by facilities issues and gas handling constraints, and the
reservoir performance remains strong.
The increase in 2P reserves was primarily driven by performance
at Jubilee and an increase at Greater Tortue Ahmeyim following the
GTA-1 appraisal well drilled in 2019. 2P reserves in Equatorial
Guinea and the Gulf of Mexico were held relatively flat, with
revisions replacing most of 2019 production.
The company’s reported reserves are prepared by Ryder Scott
Company, L.P., an independent third-party reserve engineering firm.
Proved reserves have been calculated using SEC guidelines at a
weighted average price of $63.15/bbl Brent. Proved plus probable
reserves have been calculated using PRMS guidelines using a nominal
Brent oil price of $60/bbl in 2020 increasing thereafter.
1) Tortue Phase 1 SPA was signed on February 11, 2020 and proved
reserves from Tortue have been included in a certified reserve
report by Ryder Scott Company L.P.. Probable reserves for Phase 1
of Tortue were booked in 2018 as a result of the approval of the
Phase 1 plan of development. 2) Reserve replacement ratio (RRR) is
the amount of oil and gas added to the company's reserves divided
by the amount extracted for production in 2019.
About Kosmos Energy Kosmos is a full-cycle deepwater
independent oil and gas exploration and production company focused
along the Atlantic Margins. Our key assets include production
offshore Ghana, Equatorial Guinea and U.S. Gulf of Mexico, as well
as a world-class gas development offshore Mauritania and Senegal.
We also maintain a sustainable exploration program balanced between
proven basin infrastructure-led exploration (Equatorial Guinea and
U.S. Gulf of Mexico), emerging basins (Mauritania, Senegal and
Suriname) and frontier basins (Cote d'Ivoire, Namibia, Sao Tome and
Principe and South Africa). Kosmos is listed on the New York Stock
Exchange and London Stock Exchange and is traded under the ticker
symbol KOS. 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 2018 Corporate Responsibility Report. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200211006127/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Rhys Williams +1-214-445-9693 rwilliams@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
Kosmos Energy (NYSE:KOS)
Historical Stock Chart
From Apr 2024 to May 2024
Kosmos Energy (NYSE:KOS)
Historical Stock Chart
From May 2023 to May 2024