Latest Kosmos Energy News
Jan 19, 2022
The stock price of Kosmos Energy Ltd (NYSE: KOS) increased by 4.15% today. This is why it happened. The stock price of Kosmos Energy Ltd (NYSE: KOS) increased by 4.15% today. Investors responded positively to Kosmos Energy (NYSE: KOS) announcing the completion of the drilling of the Winterfell-2 appraisal well on Block 943 in the Green Canyon area of the U.S. Gulf of Mexico. The Winterfell-2 well (Kosmos working interest ~16.4%), was drilled to evaluate the adjacent fault block to the northwest of the original Winterfell discovery and was designed to test 2 horizons that were oil bearing in the Winterfell-1 well, with an exploration tail into a deeper horizon. And the well discovered approximately 40 meters (~120 feet) of net oil pay in the first and second horizons with better oil saturation and porosity than pre-drill expectations. The exploration tail has discovered an additional oil-bearing horizon in a deeper reservoir — which is also prospective in the blocks immediately to the north. The results of the appraisal well further define the resource potential in the central Winterfell area with the current estimate around 100 million barrels gross. Separately, Kosmos farmed down an interest in the 2 blocks immediately to the north of the Winterfell discovery to the owners of the central Winterfell discovery in exchange for cash consideration and the retention of an overriding royalty interest. And this aligns the partnership and provides the ability to further scale the development with low-risk follow-on drilling. Kosmos is going to retain a 35% working interest in the two blocks, which have been significantly de-risked following the results of the Winterfell-1 and Winterfell-2 wells. And the Winterfell complex is located within tie-back distance to several existing and planned host facilities and the partnership is working to define the development plan. The Winterfell-2 well is located in about 1,600 meters (~5,800 feet) of water and was drilled to a total depth of approximately 8,700 meters (~28,500 feet). And an affiliate of Beacon Offshore Energy LLC is an operator of the Winterfell-2 well. The additional interest owners include Red Willow Offshore LLC, Ridgewood Monarch North LLC, CSL Exploration, LP, CL&F Offshore LLC, Houston Energy, L.P., Beacon Offshore Energy Exploration LLC, and Beacon Asset Holdings LLC. KEY QUOTE: “The positive result from Winterfell-2 appraisal well demonstrates the greater potential in the Winterfell area. The well results are encouraging and provide the support needed to advance a low-cost, lower-carbon development scheme that could be brought online in around two years.” — Andrew G. Inglis, Kosmos Energy’s chairman and chief executive officer Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.