Kosmos Energy Announces Ratification of Ghana License Extensions by Parliament and Provides Trading Update

Core Viewpoint - Kosmos Energy has successfully secured license extensions for its operations in Ghana, which are expected to enhance investment and production capabilities in the region [1] Group 1: License Extensions and Benefits - The Ghanaian parliament has ratified the license extensions for the West Cape Three Points and Deepwater Tano Petroleum Agreements, extending them to 2040 [1] - The extensions are projected to bring up to $2 billion in incremental investment and increase the availability of affordable gas for domestic power generation in Ghana [1] - The amended Jubilee plan will include up to 20 additional wells, leading to an expected increase in Jubilee 2P reserves [1] Group 2: Production Updates - The J74 well at the Jubilee field has ramped up to a gross daily production of approximately 13,000 barrels of oil per day (bopd), raising average gross Jubilee oil production to over 70,000 bopd in February [1] - The first well of the 2026 drilling campaign, J75, has been drilled and is expected to be completed in three zones, with production anticipated to commence by the end of Q1 2026 [1] - At the TEN fields, a sale and purchase agreement has been signed for a floating production, storage, and offloading vessel (FPSO) for a gross consideration of $205 million, expected to reduce operating expenses significantly starting in 2026 [1] Group 3: Financial Performance - In January, Kosmos completed a $350 million Norwegian bond issuance, which was well-received by investors, using $100 million to repay borrowings and the remainder for repurchasing 2027 senior unsecured notes [1] - The company has begun hedging 2027 production, securing two million barrels of oil with a floor price of $60 per barrel [1] Group 4: Strategic Outlook - The parliamentary ratification of the license extensions is viewed as a significant milestone for both Kosmos and Ghana, with expectations of unlocking further potential in the Jubilee field through continued investment and advanced technologies [1] - Kosmos aims to create long-term value for shareholders by enhancing production and financial resilience [1]