www.kosmosenergy.com
Kosmos Energy Ltd. is an independent oil and gas exploration and production company focused on under-explored regions in Africa.
Full Kosmos Energy profile here
Thu 12:20 pm by Olivia D’Orazio
Kosmos Energy (NYSE:KOS) said Thursday it pulled from a loss in its fourth quarter as the oil and gas producer recorded strong oil sales.
For the three months ended December 31, the company posted net income of $34.3 million, or $0.09 per share, compared to a net loss of $94.1 million a year ago.Total revenues for the period rose to $221.7 million, from just under $3.0 million in the same period last year.Oil and gas sales totaled $220 million, from nil a year ago, representing an average $110 per barrel in sales. Interest income, however, fell three percent to $1.63 million.Executive VP and CFO, W. Greg Dunlevy said: “The fourth quarter of 2011 wrapped up a significant and transformational year for Kosmos Energy, which included our successful transition to becoming a public company. “Excellent exploration results were highlighted by new discoveries at Teak, Tweneboa Deep, Akasa, and Ntomme, making 2011 the second best year in our history for exploration. “We also created significant momentum with our appraisal programs, which are directed towards advancing two additional developments offshore Ghana. “Furthermore, our strategic new ventures program identified and captured a number of attractive exploration opportunities, adding material acreage offshore Morocco and Suriname. “We entered 2012 in a very strong position, with a focus on profitably growing our operations in Ghana and exploring for substantial new petroleum systems.”Production expenses for the quarter totaled $25 million, or $12.59 per barrel sold. Meanwhile, exploration expenses rose seven percent to $21.8 million, including about $17 million in seismic expenditures.The company reported a nine percent decline in total proved reserves, to 51 million barrels of oil equivalent, reflecting the company’s sales volumes in 2011. Proved oil reserves fell ten percent to 47 million barrels, though proved gas reserves increased nine percent to 24 billion cubic feet.For the full year fiscal 2011, the company narrowed its loss to $2.09 million, from a $323 million loss in 2010. Total revenues rose to $676.8 million, from just $9.34 million in the same period a year ago.Separately, Kosmos announced its 2012 capital program, totaling $600 million, with exploration and appraisal activities comprising55 percent of the budget, and development comprising the remaining 45 percent. Over 90 percent of the budget will be invested in the company’s operations in Ghana.Kosmos president and CEO, Brian F. Maxted said: “Our 2012 capital program is highly focused on furthering our exploration program to identify and discover substantial new petroleum systems, as well as enhancing the value of our existing assets. “Offshore Ghana, we are continuing to advance the development of Jubilee, and we are taking significant steps toward the next major project developments. “Our appraisal and exploration drilling program is substantial, with plans to participate in nine new wells in 2012, including a number of high impact exploration prospects. In addition, we have the potential to expand this program with additional contingent wells. “In our current portfolio outside of Ghana, we are planning, acquiring and processing important 3D seismic in newly acquired petroleum systems such as Morocco and Suriname, and our teams are preparing to commence our first operated well onshore Cameroon late in the year.”At its offshore Teak discovery in Ghana, where Kosmos successfully completed the Teak-3 appraisal well in the fourth quarter, the company said it will complete another two appraisal wells in 2012.The company’s development investments in 2012 will be focused on the company’s phase one activities at Kosmos’ Jubilee operations, also in offshore Ghana. During the fourth quarter, Kosmos said it completed two liftings at Jubilee, totaling about 2.0 million net barrels of oil. It also drilled and completed the J-7 sidetrack well at Jubilee, utilizing a new completion design.In 2012, Kosmos said it will perform up to three sidetracks at Jubilee. At the end of this year, the company said it anticipates four production wells and one injection well to be online. Gross production at Jubilee is expected to average between 70,000 and 90,000 barrels of oil per day in 2012.During the fourth quarter, Kosmos expanded its position in the Agadir basin in offshore Morocco, to over six million gross acres, with the execution of a Reconnaissance Contract for the Tarhazoute area. First drilling is planned for as early as 2013.Kosmos also acquired its first acreage position outside of Africa during the fourth quarter. The company said it captured two substantial offshore blocks in Suriname, South America, totaling nearly three million gross acres. First drilling is planned for 2014.In New York, shares of the Bermuda-based company rose 0.43 percent to $14.07, as of 11:50 am EDT.
