Kosmos Energy Ltd - RBL Re-determination and Operational Update
KOSMOS ENERGY successfulLY completes RESERVE BASED LENDING
FACILITY re-determination AND PROVIDES OPERATIONAL UPDATE
RBL Facility and Liquidity
The Company's lending syndicate has approved an RBL borrowing base capacity of
Further Operating and Capital Cost Reductions
Kosmos has worked with its operators to identify a further
The operator's priority is maintaining the safety of its staff, contractors and the general public, and continued compliance with international and national restrictions to stop the spread of the coronavirus. With border closures, travel bans, social distancing restrictions and office closures arising from the coronavirus, the project's activities across global locations have been impacted. These ongoing restrictions have had an impact on time-critical workstreams, including the construction of the breakwater during the 2020 weather window. As a result, the Phase 1 project timeline is expected to be delayed by approximately 12 months, with first gas now expected in the first half of 2023. Phase 1 of the project is currently over 30% complete.
This delay is expected to result in a significant reduction in budgeted spend in 2020 as activity and milestone payments are delayed. With the re-phasing of the project timeline, we are working with the operator to establish a revised 2020 budget with the objectives of maintaining the project economics and extending the carry of our capital obligations through the end of this year. In addition, we continue with the Tortue sell down process to support a self-funded gas business.
Andrew G. Inglis, Kosmos Energy's Chairman and Chief Executive Officer said, "The underlying quality of our reserve base has allowed the company to successfully execute the RBL re-determination in a volatile environment. We thank our banks for their continued support. We have also further reduced our costs supporting our objective of lowering our cash flow breakeven in 2020. Coronavirus has impacted the operator's ability to execute the Greater Tortue Ahmeyim project. The year delay of the project as a result of missing the weather window is an inevitable consequence, but the safety of our people and those of our partners remains the priority during these unprecedented times. We are working with the operator to optimize the capital phasing of the project."
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. Our key assets include production offshore Ghana, Equatorial Guinea and U.S. Gulf of Mexico, as well as a world-class gas development offshore Mauritania and Senegal. We also maintain a sustainable exploration program balanced between proven basin infrastructure-led exploration (Equatorial Guinea and U.S. Gulf of Mexico), emerging basins (Mauritania, Senegal and Suriname) and frontier basins (Cote d'Ivoire, Namibia, Sao Tome and Principe and South Africa). Kosmos is listed on the New York Stock Exchange and London Stock Exchange and is traded under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The Company's Business Principles articulate our commitment to transparency, ethics, human rights, safety and the environment. Read more about this commitment in the Kosmos 2018 Corporate Responsibility Report. For additional information, visit www.kosmosenergy.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Kosmos expects, believes or anticipates will or may occur in the future are forward-looking statements. Kosmos' estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although Kosmos believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words "anticipate," "believe," "intend," "expect," "plan," "will" or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in Kosmos' Securities and Exchange Commission ("SEC") filings. Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
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