[ad_1]
Dallas-based Kosmos Energy has made an oil discovery in the U.S. Gulf of Mexico at the Tiberius exploration well.
Kosmos did testing at the Tiberius exploration well with a four-way structural trap in the outboard Wilcox trend, located in Keathley Canyon Block 964. The well encountered approximately 250 feet (75 meters) of net oil pay in the primary Wilcox target, Kosmos said in a news release Wednesday, adding that wireline logging has been completed and casing is currently being run to the target depth to enable the well as a future oil producer.
The Tiberius well is located in approximately 7,500 feet (2,300 meters) of water and was drilled to a total vertical depth of approximately 25,800 feet (7,800 meters) Kosmos is the operator of the well and has a 33.34 percent working interest, with Occidental Petroleum Corp and Equinor ASA both holding a 33.33 percent working interest each.
Kosmos said it will undertake rock and fluid analysis to confirm the production potential of the reservoir and will work with partners on subsea development options.
The discovery is located approximately six miles southeast of the Occidental-operated Lucius SPAR production facility, enabling a short tie-back in the event of a development.
“Exploration success at Tiberius validates our proven basin infrastructure-led exploration strategy, which is focused on low cost, short cycle development opportunities”, Kosmos Energy Chairman and CEO Andrew Inglis said. “The Gulf of Mexico is an advantaged basin with top quartile carbon emissions, and discoveries like Tiberius can bring lower carbon U.S. supply to meet near-term growing oil demand”.
Second Quarter Results
Kosmos reported a net income of $23.3 million in the second quarter, compared to $117.2 million in the prior-year period. The company posted total revenues of $273.3 million for the quarter, compared to $629.9 million in the same period in 2022.
Kosmos’ total net production in the second quarter averaged approximately 58,000 barrels of oil equivalent per day, in line with company guidance. Its current production was around 25 percent higher after the startup of the Jubilee South East project offshore Ghana, the company said in an earlier earnings release.
“Kosmos continued to deliver on its strategy with the commencement of production from the Jubilee South East development in July”, Inglis said. “The startup of the first of three key development projects for Kosmos is an important step to realizing the free cash flow inflection point we expect as production rises and capital spending starts to fall. With the additional production from Jubilee year-to-date, we are currently around halfway to achieving our 50 percent production growth target from 2022 levels”.
“Further production growth is expected later in the year as additional Jubilee wells come online”, Inglis added. “Our other key projects, Greater Tortue Ahmeyim Phase 1 in Mauritania and Senegal, and Winterfell in the U.S. Gulf of Mexico continue to progress with first gas at Tortue expected in the first quarter of 2024 and first oil at Winterfell expected around the end of the first quarter of 2024. We are approaching an exciting time for the business as we begin to benefit from the delivery of our multi-year investment program”.
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. Its key assets include production offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal.
To contact the author, email rocky.teodoro@rigzone.com
[ad_2]
Source link