DALLAS–(BUSINESS WIRE)–Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today two developments that together strengthen the company’s liquidity and better position Kosmos for continued success in a lower commodity price environment. In addition, the company provided an update on its exploration drilling program.
Kosmos announced today that the borrowing base under its reserves-based lending facility remains unchanged at $1.5 billion following its lenders’ semi-annual redetermination process which concluded on September 30, 2015. Kosmos ended the third quarter with approximately $1.9 billion of liquidity and net debt of $0.5 billion as of September 30, 2015, which is flat with the second quarter of 2015.
Kosmos also announced today an amendment to its contract for the Atwood Achiever drillship. The agreement reduces the operating day rate and extends the contract end date by one year. As part of the agreement, Kosmos Energy has an option, which may be exercised at any time through October 1, 2016, to revert the contract to the original operating day rate and original end date.
Kosmos’ second exploration well offshore Mauritania, Marsouin-1, was spud on August 28, 2015, with results anticipated in the middle of the fourth quarter. Marsouin-1 is located in Block C8 approximately 60 kilometers north of the basin-opening Tortue-1 well in a water depth of approximately 2,400 meters. The well is designed to test a four-way trap with multiple stacked targets, including Lower Cenomanian, Albian, and Aptian formations. As operator of the well, Kosmos currently holds a 60 percent working interest with its partners Chevron Mauritania Exploration Limited, a wholly owned subsidiary of Chevron Corporation (NYSE: CVX), and Société Mauritanienne Des Hydrocarbures et de Patrimoine Minier (SMHPM) holding 30 percent and 10 percent, respectively.
Andrew G. Inglis, chairman and chief executive officer, said, “Our successful semi-annual borrowing base redetermination and amendment of the Atwood Achiever contract are both part of our continuing effort to strengthen our overall liquidity and position Kosmos for success in a ‘lower-for- longer’ commodity price environment. Our favorable financial position and reduced drilling costs further enhance our ability to invest in our exploration and appraisal program to grow shareholder value.”
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. Our assets include existing production and other major development projects offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Mauritania, Portugal, Senegal, Suriname, 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 2014 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.