Kosmos to Boost Jubilee Production, Exploration Targets

- Kosmos to Boost Jubilee Production, Exploration Targets

Thursday, August 11, 2011
Kosmos Energy Ltd.

Kosmos announced financial and operating results for the second quarter ended June 30, 2011. The Company generated a net loss of $9.1 million in the second quarter of 2011, or $0.03 pro forma basic and diluted net loss per share attributable to common shareholders. This compares with a net loss of $32.5 million for the same period in 2010.

Second-quarter 2011 oil revenues were $124.1 million on sales of 996 thousand barrels of oil, or $124.62 per barrel. Jubilee Field average production for the quarter was approximately 66 thousand barrels of oil per day (bopd) gross. EBITDAX was $102.5 million for the second quarter of 2011, compared with $9.7 million for the second quarter of 2010.

The Company's cash on hand at the end of the second quarter grew to $818 million. Total liquidity, including cash and available borrowing under the existing debt facility was nearly $1 billion.

"Kosmos' recent initial public offering enhanced our strong financial foundation and provided additional capacity to continue accelerating the development and exploration of our assets. The commissioning of the Jubilee Field Phase 1 development is ongoing, with water and gas injection facilities now progressing well. We are seeing continued improvement in operating uptime, and field production is anticipated to further ramp up during the remainder of 2011. The Company's near-term outlook includes growing Jubilee production and a number of exploration and appraisal drilling targets. In addition, we are progressing our inventory of discoveries in Ghana, and our exploration team continues to enhance our overall portfolio with significant new areas," said Brian F. Maxted, President and Chief Executive Officer.

Operational Update

Ghana

Current gross production at the Jubilee Field is approximately 80 thousand bopd. With final commissioning of process and injection facilities, completion of the remaining wells and the sidetrack of an existing well, the Company is targeting production reaching the FPSO capacity around year-end 2011. Planning for the next phase of Jubilee Field development is underway, and Kosmos expects implementation to commence during 2012.

The Atwood Hunter semi-submersible rig is currently drilling the Akasa-1 exploration well on the Kosmos-operated West Cape Three Points Block. The Akasa-1 well is expected to reach final target by the end of August 2011. In addition, the Company plans to further appraise the Teak discovery with an initial two-well program, commencing as early as late 2011.

Appraisal activity to support development planning continues on the adjacent Deepwater Tano Block. Drillstem tests were recently performed on the Tweneboa-2 and Tweneboa-4 wells as part of an integrated reservoir evaluation program. Kosmos also anticipates drilling two additional appraisal wells in the Enyenra Field later this year.

Cameroon

Kosmos continues to perform an extensive technical evaluation of the Kombe N'sepe Block following initial drilling results. The Kombe N'sepe Block operator recently has exercised a contractual right for a six-month extension to the current exploration phase. The Company anticipates drilling the Liwenyi prospect on the Kosmos-operated N'dian River Block in 2012.

Morocco

The Company recently entered into two new petroleum agreements covering the Foum Assaka and Cap Boujdour areas offshore the Kingdom of Morocco. The Foum Assaka license covers approximately 1.6 million acres, and Kosmos will be the operator with a 37.5 percent working interest. The Cap Boujdour license agreement covers 7.3 million acres. Kosmos also will be the operator of the Cap Boujdour license with a 75 percent working interest.

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Tullow 1H Revenue Seen Boosted By Jubilee, Higher Oil Price

- Tullow 1H Revenue Seen Boosted By Jubilee, Higher Oil Price

Tuesday, July 05, 2011
Dow Jones Newswires
LONDON

Tullow Oil said it expects to post record first-half revenue of $1.05 billion next month, as the London-based explorer continues to ramp up production from its Jubilee field offshore Ghana to 80,000 barrels of crude a day, a 14.3% increase from the level announced last month.

In a trading update, Tullow said first-half working interest production has averaged 75,350 barrels of oil equivalent a day, an 35% increase from the 55,800 boe/day logged in the corresponding period in 2010.

For the full year, Tullow said it expects to produce 90,000 to 94,000 boe/day, more than 50% higher than last year, boosted by new licenses in Ghana and the North Sea acquired earlier this year.

"The performance of our business since the beginning of 2011 has been excellent and we expect to deliver record financial results for the first half of the year," said Chief Executive Aidan Heavey.

Tullow said it expects total first-half revenue of around $1.05 billion, compared with $486 million for the same period in 2010, attributing the sharp rise to higher sales volumes thanks to the contribution of Jubilee, its largest discovery and which is expected to reach plateau production of 120,000 barrels a day in August.

The company's anticipated surge in revenue has also been underpinned by "significantly higher" oil and gas prices, the company said, adding that its oil production sold at an average discount of approximately 2% to Brent during the first half of 2011.

Analysts said while the trading update didn't contain any surprises, it did confirm Tullow's growth program remains on track.

Angus McPhail said it was further evidence "that Tullow is graduating from E&P to integrated player," while Oriel Securities' Richard Rose said its diverse exploration portfolio had "considerable upside potential."

Copyright (c) 2011 Dow Jones & Company, Inc.

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