Kosmos
Kosmos

Kosmos Energy Ltd. has posted its financial and operating results for the first quarter of 2014, which included net income of $75 million, or $0.20 per basic share and $0.19 per diluted share as compared with $20 million, or $0.05 per basic and diluted share in the same quarter last year. A statement issued in Dallas, US, said the current quarter?s results include a benefit to income of $24 million related to the farm-down of a portion of the company?s interest in three exploration licenses in Morocco?s Agadir Basin. In addition, first quarter results benefited from lower costs that more than offset a decrease in oil sales revenue primarily associated with lower oil prices.

Andrew G. Inglis, chairman and chief executive officer, commented: ?We had a strong first quarter largely due to consistent production from the Jubilee field and lower costs overall. Looking to the future, we are encouraged by the quality of our exploration portfolio as we mature the prospects to the drilling stage from recently acquired 3D seismic. We plan to drill a series of potentially play-opening exploration wells, with the next spud targeted for late 2014. With our cash flow from Ghana and existing liquidity, we remain extremely well-positioned to deliver this program as a self-funded explorer.?

The report said gross production from the Jubilee field averaged approximately 102,000 barrels of oil per day (bopd) in the first quarter of 2014, an increase from 93,000 bopd in the fourth quarter of last year. Collectively with our Jubilee field partners and the Government of Ghana, we are continuing work to address gas-related constraints which currently limit oil production from the field.

Appraisal of the Mahogany, Teak and Akasa (MTA) discoveries within the Greater Jubilee area continued in the first quarter as a Jubilee development well was successfully deepened to evaluate the Mahogany interval.

On its financials, Kosmos said its first quarter 2014 oil revenues were $213 million as against $228 million in the same quarter of 2013.
Production expense for the first quarter of 2014 was also lower at $16 million, against $24 million in the first quarter of 2013 reflecting lower well workover and rig maintenance expense.

Exploration expenses in the first quarter of 2014 totaled $13 million compared with $24 million in the prior year quarter. Included in the quarter were initial costs related to a large 3D seismic survey in Morocco. Depletion and depreciation expense was $46 million versus $59 million in the first quarter of 2013 with the improvement primarily related to the increase in proved reserves at the end of 2013.
General and administrative expenses in the first quarter of 2014 were $27 million versus $39 million in the first quarter of 2013 and income tax expense for the first quarter of 2014 was $51 million; the majority of the amount was related to the company?s operations in Ghana.
The company?s hedging position at the end of the first quarter totaled 9.7 million barrels.

The company is realigning and reorganizing its activities to better focus on delivering its exploration strategy. In this regard, the company intends to record an estimated $9 million charge during the second quarter to cover costs associated with these actions and associated staff redundancies.

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