Kosmos Energy Ltd., Dallas, expects to see production growth later this year and into 2024 with the start of three development projects, the company said as part of its second-quarter 2023 earnings Aug. 7.
Net production in this year’s second quarter came in at 58,000 boe/d, flat quarter-over-quarter. Full-year 2023 guidance is unchanged at 65,000-69,000 boe/d due to growth coming from new wells at Ghana's Jubilee field.
Production start at Tullow Oil-led Jubilee South East development in July is the first of three key development projects and places Kosmos about halfway to its 50% production growth target from 2022 levels, said chairman and chief executive officer Andrew G. Inglis (OGJ Online, July 14, 2023).
“Further production growth is expected later in the year as additional Jubilee wells come online,” he said. The other key projects, Greater Tortue Ahmeyim Phase 1 in Mauritania and Senegal, and Winterfell in the US Gulf of Mexico continue to progress,” he said. bp, operator of Tortue, pushed first gas from the Phase 1 project to first-quarter 2024 from end-2023 due to a delay in completion of subsea work (OGJ Online, Aug. 7, 2023). First oil at Winterfell is expected around the end of first-quarter 2024, he said.
Production operations
Ghana
Production in Ghana averaged 33,700 boe/d (net) in the year’s second quarter.
At Jubilee, production averaged 72,700 b/d oil (gross) during the quarter, in line with the previous quarter.
Post end-second quarter, the Jubilee South East (JSE) development commenced production with two wells coming online, about 1 month behind schedule, Kosmos said. The two new JSE wells took gross Jubilee production to around 100,000 b/d of oil. An additional Jubilee producer well and two water injector wells are expected online later in the year, which should further enhance production levels.
At TEN, production averaged 19,700 b/d of oil (gross) for the quarter, in line with expectations.
US Gulf of Mexico
Production in the US Gulf of Mexico averaged 15,900 boe/d net (81% oil) during second-quarter 2023, in line with guidance.
Progress at Winterfell continues with drilling of the first phase of the development wells expected to start in this year’s third quarter. Partners are targeting first oil around the end of first-quarter 2024.
Tiberius (33% interest), an infrastructure-led exploration (ILX) well, targeting a four-way structural trap with a pre-drill gross resource estimate of 135 million bbl of oil, began drilling early in the third quarter with initial results expected late in the quarter.
Production from the Kodiak ST-3 well has improved over the quarter and, as a result, the timing for the well workover is being optimized to include a third producing zone and is now expected to complete mid-2024, the company said.
The Odd Job subsea pump project, intended to sustain long-term production from the field, continues to progress and remains on track to be in service by mid-2024.
Equatorial Guinea
Production in Equatorial Guinea averaged 24,000 b/d of oil (gross) and 8,400 b/d of oil (net) in second-quarter 2023.
The infill drilling campaign is scheduled to begin in this year’s fourth quarter following a 2-well workover program utilizing the drilling rig. The first of three infill wells is expected to be online near the end of first-quarter 2024.
The Akeng Deep ILX opportunity, a well targeting an estimated pre-drill gross resource of about 180 million bbl of oil in the deeper Albian trend, is expected to spud next year following completion of the infill drilling campaign.
Financials
For second-quarter 2023, Kosmos generated net income of $23 million. Adjusted net income was $27 million. Revenues were $273 million and capital expenditures were $170 million. The company generated net cash provided by operating activities of $18 million.