TIDMKOS
RNS Number : 3912U
Kosmos Energy Limited
24 October 2017
Kosmos ENERGY Expands STRATEGIC Position in Gulf of Guinea
Kosmos/Trident joint venture acquires portfolio offshore
Equatorial Guinea with
new exploration acreage and oil production
DALLAS, Texas, October 24, 2017 - Kosmos Energy (NYSE/LSE: KOS)
announced today that in partnership with Trident Energy (Trident),
it has agreed to acquire an interest in three exploration licenses,
as well as Hess Corporation's interest in the adjacent Ceiba Field
and Okume Complex assets offshore Equatorial Guinea on a 50-50
basis. Under the terms of the agreements, Kosmos will be primarily
responsible for exploration and subsurface evaluation while
Trident, a newly formed international oil and gas company supported
by Warburg Pincus, will be primarily responsible for production
operations and optimization. The transactions capture a material
position in proven but under-explored oil basin originally
discovered and operated by members of the Kosmos management
team.
Highlights of the Transactions:
* Increases Kosmos' total gross acreage in the Gulf of
Guinea by approximately 6,000 square kilometers,
adding to its existing 25,000 square kilometer
position offshore Sao Tome in the same petroleum
system
* Provides exploration opportunities for large frontier
prospects, as well as near-field, short-cycle
tie-backs through existing infrastructure with good
fiscal terms
* Adds approximately 13,500 barrels of oil per day
(bopd) of net(1) production (gross: 45,000 bopd),
with identified opportunities for resource and value
upside
* Includes approximately 45 million barrels (mmbbl) of
net(1) identified 2P/2C remaining recoverable
resource (gross: 155 million barrels) based on
Kosmos/Trident company estimates
* Expected to generate approximately $120 million of
operating cash flow per year at $50 Brent over the
next several years, net to Kosmos
"This transaction expands our significant position in a proven,
but under-explored oil basin," said Andrew G. Inglis, chairman and
chief executive officer. "The Ceiba and Okume fields, which our
team originally discovered and managed, provide low-cost,
high-margin production with several identified opportunities for
resource and value upside. These discoveries de-risked the key play
elements in the basin, but limited exploration in subsequent years
means we have the chance to fully unlock the exploration potential
of the Rio Muni basin. Our differential knowledge of the basin and
access to under-utilized infrastructure, creates a unique
opportunity for the company. Furthermore, our partnership allows us
to add value through our core expertise while leveraging the proven
management team at Trident to deliver the upside from the Ceiba and
Okume fields. In addition, the attractive purchase price means the
acquisition is immediately accretive from both a value and leverage
perspective, and enhances our already strong financial
position."
Financial Terms
The gross acquisition price of $650 million is effective as of
January 1, 2017. Kosmos is expected to pay net cash consideration
of approximately $240 million at close, subject to post-closing
adjustments. The company plans to fund the acquisition using cash
on hand and availability from its reserves based lending (RBL)
facility. As a result of the transaction, Kosmos expects the RBL to
increase, resulting in Kosmos maintaining its current liquidity of
approximately $1.2 billion. The transaction is expected to close by
year end, subject to customary closing conditions.
Effective Participating Interests (2)
Ceiba Field Blocks
and Okume EG-21,
Complex W, S
--------------- ------------ --------
Kosmos Energy 40.375 % 40.0%
--------------- ------------ --------
Trident
Energy 40.375 % 40.0%
--------------- ------------ --------
Tullow Oil 14.25% NA
--------------- ------------ --------
GE Petrol
(3) 5.0 % 20.0%
--------------- ------------ --------
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/3912U_-2017-10-23.pdf
1. Based on Kosmos net entitlement at $50 per barrel. Net of royalty
2. Net effective participating interests upon transaction closing
3. GE Petrol manages the interest in the Ceiba and Okume fields
on behalf of the Republic of Equatorial Guinea
Conference Call & Webcast Information
Kosmos will host a conference call and webcast to discuss its
entry into Equatorial Guinea on Tuesday, October 24, 2017 at 9:00
a.m. CDT.
Dial-in telephone numbers:
U.S. / Canada: +1.877.407.3982
International: +1.201.493.6780
Webcast: investors.kosmosenergy.com
A slide presentation will be made available on the Investors
page of Kosmos' website at www.kosmosenergy.com prior to the call.
A replay of the webcast will be available on the website for
approximately 90 days following the event.
About Kosmos Energy
Kosmos is a leading independent oil and gas exploration and
production company focused on frontier and emerging areas along the
Atlantic Margin. Our assets include existing production and
development projects offshore Ghana, large discoveries offshore
Mauritania and Senegal, as well as exploration licenses with
significant hydrocarbon potential offshore Suriname, Sao Tome and
Principe, Morocco and Western Sahara. 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 2016 Corporate
Responsibility Report. Kosmos is listed on the New York Stock
Exchange and the London Stock Exchange under the ticker symbol KOS.
For additional information, visit www.kosmosenergy.com.
About Trident Energy
Trident Energy is a newly formed independent oil and gas
exploration and production company focused on the acquisition,
operational improvement and optimization of international mid-life
assets. The company is currently building a diversified portfolio
of onshore and offshore producing operated assets through
acquisitions. Trident Energy has a global mandate, with a primary
focus on Africa and South America. The company is led by an
experienced management team with over 100 years of international
oil and gas operating experience.
Trident Energy is supported by an equity commitment of up to US$
600 million led by Warburg Pincus, a leading private equity firm
focused on growth investing with significant energy experience. For
further information, visit www.trident-energy.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.
###
Inside Information
This announcement contains inside information. The person
responsible for arranging the release of this announcement is Neal
Shah, Vice President, Finance and Treasurer.
CONTACT:
Investor Relations
Neal Shah
+1-214-445-9628
nshah@kosmosenergy.com
Rhys Williams
+1-214-445-9693
rwilliams@kosmosenergy.com
Media Relations
Thomas Golembeski
+1-214-445-9674
tgolembeski@kosmosenergy.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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