Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today financial and operating results for the first quarter of 2018. For the first quarter of 2018, the Company generated a net loss of $50.2 million, or $0.13 per diluted share as compared to net loss of $28.8 million or $0.07 per diluted share in the same period last year. When adjusted for certain items that impact the comparability of results, the Company generated an adjusted net loss of $23.2 million or $0.06 per diluted share for the first quarter of 2018.
“Kosmos is off to a good start in 2018 across all three areas of our business,” said Andrew G. Inglis, chairman and chief executive officer. “Strong and growing production from our high-margin assets in Ghana and Equatorial Guinea continues to generate significant free cash flow, underpinning our solid financial position. The Tortue gas development, which represents the next phase of major production growth for Kosmos, continues to move forward at pace with all FEED contracts now awarded and a clear path to FID around year end. In addition, we have a balanced exploration portfolio with multiple, visible opportunities in proven, emerging, and frontier basins, including two exploration wells offshore Suriname this year. “First quarter 2018 oil revenues were $127.2 million versus $103.4 million in the same quarter of 2017, on sales of 1.9 million barrels of oil in 2018 as compared to 2.0 million barrels in 2017. Including the impact of the Company’s hedging program, hedged revenue was $55.56 per barrel of oil sold in the first quarter of 2018. At the end of the quarter, the Company was in a net underlift position of approximately 0.8 million barrels of oil.
Operational Update
Ghana
During the first quarter of 2018, gross sales volumes from Ghana averaged approximately 132,400 barrels of oil per day (bopd), including volumes from the Jubilee and TEN fields.
At Jubilee, gross production averaged approximately 63,800 barrels of oil per day. The Jubilee turret remediation work is progressing as planned with the stabilization shutdown being conducted in two phases, the first of which is complete and oil production is back online. The second phase is expected to commence during the second quarter of 2018, and it is anticipated that oil production will be offline for around two weeks as a consequence of this shutdown. It is anticipated that the gas system will be shut-in for slightly longer to complete non-turret related maintenance. We now expect the rotation of the vessel to take place around the end of 2018 with minimal impact to production in 2018.
Gross production from TEN in the first quarter averaged approximately 68,600 bopd.
With drilling now resumed, the focus in Ghana has turned to growing production across Jubilee and TEN. In March, the Maersk Venturer drillship arrived in Ghana and commenced operations. In 2018, the partnership plans to drill and complete four producers, including two each at Jubilee and TEN, and complete a water injector at Jubilee. The Ntomme-5 well at TEN is the first well scheduled to be placed on production, anticipated in early July. Drilling activity at TEN is expected to allow production to increase towards the FPSO capacity of 80,000 bopd. Kosmos and its partners are continuing to evaluate the addition of a second rig, which should allow drilling and completion operations to be accelerated.
Source: businesswire.com
