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Kosmos Energy's Mahogany-2 Appraisal Well Flows 5,200 Barrels of Oil During Drillstem Test Offshore Ghana

Posted on: Tuesday, 10 June 2008, 03:00 CDT

Kosmos Energy announces today that the company's deepwater Mahogany-2 appraisal well in the Jubilee Field offshore the Republic of Ghana on the Kosmos-operated West Cape Three Points Block tested at a flow rate of 5,200 barrels of oil per day ('bopd') of 36-degree API gravity crude oil and approximately 5.5 million cubic feet per day of associated natural gas on a 40/64-inch choke with a flowing tubing pressure of 1,543 pounds per square inch. The test encompassed a single 17 meter zone representing less than one third of the well's oil bearing pay. The flow rate was significantly limited by equipment and surface facilities. Kosmos estimates that a Jubilee production well should be capable of flowing in excess of 20,000 bopd when completed with 5 1/2-inch tubing. The favorable test results confirm that the Jubilee Field reservoirs are highly productive, which validates Kosmos' fast-track appraisal and field development program.

"The findings of this drillstem test go one giant step further to endorse the upside potential of the Jubilee Field by confirming this reservoir is extremely productive, thereby allowing us to develop the field on an aggressive timetable and as economically as possible. Kosmos and its Jubilee Field partners are moving ahead prudently but expeditiously, and making great progress to enable early production," said Brian F. Maxted, Kosmos Chief Operating Officer. "We fully expect that Jubilee oil, a light sweet crude, will be highly attractive to refiners worldwide."

The Kosmos-led integrated project team's deepwater development scheme for the Jubilee Field includes the design and installation of subsea architecture, which will be connected to a floating production, storage and offloading vessel (FPSO). As part of the Jubilee development process, contractors are on target to submit final proposals for construction and supply of the FPSO and subsea equipment (umbilicals, risers and flow lines) by the end of June.

After completion of the testing phase, Kosmos plans to acquire oil samples to conduct comprehensive refinery assays that will ascertain the crude's characteristics and its value in the global refining marketplace. The company expects to complete the Mahogany-2 well and suspend it as a potential development well.

As previously reported on May 5, 2008, the Mahogany-2 well, the field's second appraisal well, signifies a major field extension. The well is in communication with the Mahogany-1 discovery well on the West Cape Three Points Block that Kosmos announced in June 2007 and the company's Hyedua-1 confirmation well on the Tullow operated Deepwater Tano Block announced in August 2007.

Kosmos Energy is operator of the deepwater West Cape Three Points Block in which the company holds a 30.875% interest. Anadarko WCTP Company, an affiliate of Anadarko Petroleum Corporation, has a 30.875% interest; Tullow Ghana Limited, an affiliate of Tullow Oil plc, has a 22.896% interest; the E.O. Group has a 3.5% interest; and Sabre Oil and Gas has a 1.854% interest in the block. Ghana National Petroleum Corporation (GNPC), which has a 10% participating interest in the project, will be carried through the exploration and development phases.

The West Cape Three Points Block comprises 1,761 square kilometers (435,200 acres) in water depths ranging from 50 meters (165 feet) to 1,800 meters (5,900 feet). The Jubilee Field discovery well, Mahogany-1, is located 63 kilometers from the Ghanaian coastline and 132 kilometers southwest of the port city of Takoradi and is situated in the Tano Basin.

About Kosmos Energy:

Kosmos Energy is a privately held international oil exploration and production company with a focus in West Africa. Kosmos is led by a seasoned management and technical team with extensive international and West Africa experience, and a proven record of finding and developing significant oil reserves. With the financial backing of international private equity investors Warburg Pincus and Blackstone Capital Partners, the company possesses significant financial and operational capability to generate and participate in multiple high-impact upstream projects. For additional information, visit www.kosmosenergy.com.

Source: Business Wire

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