Kosmos Energy Ltd., Dallas, has earmarked $250 million in 2020 capital expenditure for its 30% working interest in Mauritania and Senegal. Elsewhere, the company expects to spend $325-$375 million in 2020, with spending focused on maintaining existing production and growth through infrastructure led exploration.
For fourth-quarter 2019, Kosmos generated a net loss of $36 million. Net cash provided by operating activities was $228 million; with free cash flow (non-GAAP) of $139 million and revenues of $450 million. Capital expenditure for the quarter was $122 million.
Kosmos exited the fourth quarter of 2019 with approximately $825 million of liquidity, total debt of $2.05 billion, and $1.82 billion of net debt.
Operations
Total net production in the fourth quarter averaged 65,200 boe/d.
US Gulf of Mexico production averaged 26,000 boe/d net (82% oil) during the quarter. Record fourth quarter production was driven by Odd Job performance and initial production from new wells from Odd Job, Gladden, and Nearly Headless Nick fields. During the quarter, Kosmos recorded $75 million of exploration expense related to the Resolution-1 and Oldfield-1 unsuccessful wells (OGJ Online, Nov. 26, 2019; Jan. 29, 2020).
Net production from Ghana averaged 27,800 b/d of oil during the quarter. Kosmos lifted four cargos from Ghana during the quarter. Jubilee gas enhancement work program was completed in early February with production rates of 90,000 b/d of oil now being achieved.
Production in Equatorial Guinea averaged 11,400 b/d of oil net in the fourth quarter. Kosmos lifted one and a half cargos from Equatorial Guinea during the quarter.
In October, the S-5 well encountered 39 m of net oil pay in good-quality Santonian reservoir. The well is within tieback range of the Ceiba FPSO and work is currently ongoing to establish scale of the resource and evaluate a development solution.
The Greater Tortue Ahmeyim project offshore Mauritania and Senegal remains on track with Phase 1 some 25% complete. Pre-FEED work is ongoing for Phases 2 and 3 and these phases are expected to expand capacity to almost 10 million tonnes/year of LNG export capacity (OGJ Online, Feb. 12, 2020).
In October, the Orca-1 exploration well made a gas discovery offshore Mauritania in the BirAllah area. Orca was the largest deepwater hydrocarbon discovery in 2019 and the results continue the 100% success rate from nine wells targeting the inboard gas trend in Mauritania/Senegal.