Kosmos Energy (KOS) Tops Q1 EPS by 5c; Announces Significant Discovery at Teranga-1 Well

Kosmos Energy (NYSE: KOS) reported Q1 EPS of ($0.04), $0.05 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $62 million versus the consensus estimate of $109.16 million.

Kosmos also announced that its Teranga-1 exploration well offshore Senegal has made a significant gas discovery.

Located in the Cayar Offshore Profond block approximately 65 kilometers northwest of Dakar in nearly 1,800 meters of water, the Teranga-1 well was drilled to a total depth of 4,485 meters. The well encountered 31 meters (102 feet) of net gas pay in good quality reservoir in the Lower Cenomanian objective. Well results confirm that a prolific inboard gas fairway extends approximately 200 kilometers from the Marsouin-1 well in Mauritania through the Greater Tortue area on the maritime boundary to the Teranga-1 well in Senegal. Kosmos has now drilled five consecutive successful exploration and appraisal wells in this fairway with a 100 percent success rate. In the process, the company has discovered a gross Pmean resource of approximately 25 Tcf and estimates the fairway may hold more than 50 Tcf of resource potential.

Andrew G. Inglis, chairman and chief executive officer, said: “Our continuing exploration success demonstrates we have opened a super-major scale basin offshore Mauritania and Senegal with world-class resource potential. Given the scale and quality of the gas resource discovered along the inboard trend, our focus is to move this resource through to development. Our forward exploration plan is to mature the two independent tests with oil potential in northern Mauritania and in the outboard of Mauritania and Senegal for drilling in 2017.”

Kosmos will provide additional information about the Teranga-1 gas discovery during its first quarter 2016 conference call on Monday, May 9, 2016 at 11:00 a.m. EDT. The call will be available via telephone and webcast.

Dial-in telephone numbers:U.S. / Canada: +1.877.407.3982International: +1.201.493.6780

Webcast:investors.kosmosenergy.com

Kosmos holds a 60 percent interest in the Teranga-1 well, along with Timis Corporation Limited at 30 percent and Société des Pétroles du Sénégal (Petrosen) at 10 percent. Since 2014, Kosmos has held rights to conduct exploration in the St. Louis Offshore Profond and Cayar Offshore Profond license areas under production sharing contracts with the Government of Senegal.

For earnings history and earnings-related data on Kosmos Energy (KOS) click here.

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