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Thursday, February 5, 2015
Kosmos Energy entered into a farm-out agreement with Chevron Mauritania Exploration Ltd. covering the C8, C12, and C13 contract areas offshore Mauritania. Under the terms of the agreement, Chevron will acquire a 30% non-operated working interest in each of the contract areas in exchange for paying a disproportionate share of the costs of one exploration well and a second contingent exploration well, subject to maximum expenditure caps.
In addition, Chevron will pay its proportionate share of previously incurred exploration costs. Chevron will not initially fund drilling of the Tortue prospect, but retains the option to participate in this prospect after the transaction is completed. The transaction is subject to customary closing conditions, including Mauritanian government approval.
Kosmos’ 2015 exploration work program in Mauritania currently includes two wells to be drilled by the Atwood Achiever drillship. The first exploration well will test the Tortue prospect, with estimated resources of approximately 2 billion recoverable boe across both Mauritania and Senegal. A second exploration well will test the Marsouin prospect with estimated resources of approximately 300 million recoverable boe, replacing the previously announced Orca prospect in the 2015 drilling program.
Andrew G. Inglis, chairman and CEO, said: “This agreement with Chevron validates the quality and scale of our Mauritania licenses, which enabled us to successfully farm out the acreage despite the current environment. The terms are consistent with our business strategy of retaining operatorship through exploration and collaborating with industry leading partners who bring significant technical expertise and strong financial capabilities.”
On closing the transaction, the interests in the three contract areas will be as follows with Société Mauritanienne Des Hydrocarbures et de Patrimoine Minier (SMHPM), the national oil company, having a carried interest,Kosmos will hold 60% (operator), Chevron 30%, and SMHPM 10%.
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