*Note: Two separate press releases*

Kosmos Energy Provides Operational and Financial Update

Kosmos Energy (KOS) provided today an operational and financial update in advance of releasing its fourth quarter 2015 results.


Gross production volumes from the Jubilee field averaged approximately 106,000 barrels of oil per day (bopd) during the fourth quarter, and 102,500 bopd for the full year 2015. There were three liftings net to Kosmos during the fourth quarter, resulting in sales of 2.8 million barrels. Gas exports continued to increase during the fourth quarter averaging approximately 92 million cubic feet per day and exiting the quarter at more than 110 million cubic feet per day. The Greater Jubilee Full Field Development Plan, which includes the Mahogany and Teak fields, was submitted to the Government of Ghana in December 2015 and approval is expected in the first half of 2016. The Tweneboa, Enyenra and Ntomme (TEN) project, our second major oil development in Ghana, remains on-budget and on-track to deliver first oil in the third quarter of 2016. The project is now over 80 percent complete. The TEN FPSO sailed from Singapore on January 23 and is expected to be on location in Ghana in March 2016.

Year-End 2015 Reserves

The Company’s proved net reserves at the end of 2015 were 76.4 million barrels of oil equivalent, resulting in a 110% reserve replacement ratio on a net proved basis. Reserves increased primarily due to continued positive reservoir performance, more than offsetting the impact of lower oil prices. The Company’s reported reserves are prepared by Ryder Scott Company, L.P., an independent reserve engineering firm.

Liquidity and 2015 Capital Program

Kosmos exited the fourth quarter of 2015 with $1.8 billion of liquidity and $614 million of net debt. This is compared to $1.9 billion of liquidity and $517 million of net debt as of September 30, 2015. Total capital expenditures in the fourth quarter were approximately $265 million. For the full year ended December 31, 2015, total capital expenditures were approximately $780 million, below previous guidance of $800 million.


As of the year-ended 2015, Kosmos’ commodity derivative asset position had a mark-to-market value of approximately $235 million. The fourth quarter results are expected to include a mark-to-market gain of approximately $80 million related to the Company’s oil derivative contracts. The Company’s hedging position as of December 31, 2015 was 10.9 million barrels through 2018.

“With another year of greater than 100% reserve replacement, our Ghana asset continues to demonstrate its world class quality. Our focus for 2016 is to maintain our financial strength through the continued strong operating performance from Ghana together with the disciplined allocation of capital,” said Andrew G. Inglis, chairman and chief executive officer.

Kosmos Energy Announces Significant Gas Discovery Offshore Senegal

Kosmos Energy (KOS) announced today that its Guembeul-1 exploration well, located in the northern part of the St. Louis Offshore Profond license area in Senegal, has made a significant gas discovery.

Located approximately five kilometers south of the basin-opening Tortue-1 gas discovery (renamed Ahmeyim) in approximately 2,700 meters of water, Guembeul-1 was drilled to a total depth of 5,245 meters. The well encountered 101 meters (331 feet) of net gas pay in two excellent quality reservoirs, including 56 meters (184 feet) in the Lower Cenomanian and 45 meters (148 feet) in the underlying Albian, with no water encountered. Importantly, Guembeul-1 has demonstrated reservoir continuity as well as static pressure communication with the Tortue-1 well in the Lower Cenomanian, suggesting a single, large gas accumulation. Moreover, the well has significantly de-risked adjacent prospectivity, including proving the existence of excellent quality reservoirs in the Albian. Furthermore, it has provided additional calibration of our seismic attribute exploration tool, confirming its reservoir and fluid predicative capability for these primary exploration targets.

Based on the integration of the Guembeul-1 well results, our Pmean gross resource estimate for the Tortue West structure has increased to 11 Tcf from 8 Tcf as a result of greater reservoir (net to gross) confidence in the Cenomanian, as well as the inclusion of volumes in the Albian. Accordingly, the Pmean gross resource estimate for the Greater Tortue Complex has increased to 17 Tcf from 14 Tcf.

Kosmos has also entered into a Memorandum of Understanding (MOU) signed by Pétroles du Sénégal (Petrosen) and Société Mauritanienne Des Hydrocarbures et de Patrimoine Minier (SMHPM), the national oil companies of Senegal and Mauritania, respectively, which sets out the principles for an intergovernmental cooperation agreement for the development of the cross-border Greater Tortue resource. The MOU enables Kosmos and the two governments to work together toward early development of the field, thereby maximizing value for all stakeholders.

“We are pleased to have delivered another major discovery with our first exploration well offshore Senegal. Guembeul-1 confirms the presence of a world class gas resource that extends into both Senegal and Mauritania. With our successful appraisal program and support of both governments, the initial gas development is gaining momentum,” said Andrew G. Inglis, chairman and chief executive officer. “The Guembeul-1 well continues our 100% success rate in the outboard Cretaceous petroleum system offshore Senegal and Mauritania, which we believe is a strategically important new oil and gas province and we are focused on unlocking the basin’s full potential.”

The Atwood Achiever drillship will now proceed to Mauritania to drill the Ahmeyim-2 delineation well in the southern part of Mauritania’s Block C-8. This will test the downdip limits of the field and is expected to complete appraisal of the Tortue West structure.

Kosmos holds a 60 percent interest in the Guembeul-1 well, along with Timis Corporation Limited at 30 percent and Petrosen at 10 percent. Since 2014, Kosmos has held rights to conduct exploration in the St. Louis Offshore Profond and Cayar Offshore Profond license areas under production sharing contracts with the Government of Senegal.

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, Sao Tome and Principe, 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, visitwww.kosmosenergy.com.

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