DALLAS--(BUSINESS WIRE)--Kosmos Energy (NYSE: KOS) announced today that it has entered into a farm-out agreement with Hess Suriname Exploration Limited, a wholly-owned subsidiary of the Hess Corporation (NYSE: HES), covering the Block 42 contract area offshore Suriname. Under the terms of the agreement, Hess will acquire a one-third non-operated interest in the Block 42 contract area from both Chevron Corporation (NYSE: CVX) and Kosmos. As part of the agreement, Hess will fully fund the cost of a 6,500 square kilometer 3D seismic survey, subject to an agreed maximum limit, inclusive of Hess’ share, expected to commence in the third quarter of 2016. Additionally, Hess will disproportionately fund a portion of the first exploration well in the Block 42 area, subject to an agreed maximum limit, inclusive of Hess’ share, contingent upon the partnership entering the next phase of the exploration period. The agreement is subject to certain customary closing conditions.
Andrew G. Inglis, chairman and chief executive officer, said: “Given recent industry success in the basin, Suriname is a top ranked opportunity in our exploration portfolio. This agreement with Hess, executed in an industry environment of capital constraints, validates the quality of our acreage position and the ongoing work to mature a number of significant prospects toward drilling. The terms of the agreement are consistent with our business strategy of retaining operatorship through exploration and collaborating with industry-leading partners who bring technical and regional expertise, as well as strong financial capabilities.”
Upon closing of the transaction, the interests in the Block 42 contract area will be as follows:
| Kosmos |
33.33% |
(Operator) |
||||||||||||||||
| Chevron | 33.33% | |||||||||||||||||
| Hess | 33.33% | |||||||||||||||||
Kosmos has held rights to conduct exploration in the Block 42 and Block 45 contract areas since 2011 under production sharing contracts with the Government of Suriname. The blocks are contiguous and cover more than 11,000 square kilometers.
About Kosmos Energy
Kosmos is a leading independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. Our assets include existing production and development projects offshore Ghana, large discoveries offshore Mauritania and Senegal, as well as exploration licenses with significant hydrocarbon potential offshore Portugal, Sao Tome and Principe, Suriname, Morocco and Western Sahara. 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 2014 Corporate Responsibility Report. Kosmos is listed on the New York Stock Exchange and is traded under the ticker symbol KOS. 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.
