Kosmos Energy Completes Farm Down of Exploration Assets to Shell
December 10 2020 - 2:00AM
Business Wire
Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”) today
announced that it has closed the previously announced transaction
with B.V. Dordtsche Petroleum Maatschappij (“Shell”), a
wholly-owned subsidiary of Royal Dutch Shell PLC (LSE: RDSA), to
farm down interests in Suriname, Sao Tome & Principe and
Namibia for approximately $95 million, plus future contingent
payments of up to $100 million. The transfer of interests in South
Africa is expected to take place in 2021.
Andrew G. Inglis, Kosmos Energy’s chairman and chief executive
officer said: “We are pleased to complete this transaction with
Shell on schedule. The proceeds enable Kosmos to strengthen the
balance sheet while accelerating high graded exploration
opportunities in proven basins. The contingent payments locked into
the agreement with Shell ensure we retain upside from frontier
exploration with no further investment.”
Kosmos has allocated up to one-third of the initial proceeds for
two high-quality infrastructure-led exploration prospects in the
Gulf of Mexico, each offering hub scale potential with a low-cost,
lower-carbon development scheme. The first test on the Winterfell
prospect is currently drilling with results expected early next
year. The company expects to use the remainder of the proceeds to
reduce borrowings outstanding under its credit facilities.
Post completion of the transaction, Kosmos retains a focused
exploration portfolio with over six billion barrels of gross
resource potential in proven basins in West Africa and the Gulf of
Mexico.
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. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20201209005752/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
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