(NYSE: KOS) today provided an update on the Company’s global operations and announced record production from the Jubilee field offshore Ghana.
Jubilee field production is currently in excess of 105,000 barrels of oil per day. Significant production growth has resulted from additional acid stimulation operations performed on some of the Phase 1 wells, as well as the startup of the Jubilee Phase 1A development plan. Two additional acid stimulation operations on Jubilee Phase 1 production wells have been recently performed, at a gross cost of approximately $8 million per well. In total, seven acid stimulation operations have been performed in 2012, with all treated wells showing substantial productivity increases.
The first of five Phase 1A production wells was recently completed and has commenced production to the Jubilee floating, production, storage and offloading (FPSO) vessel. A second Phase 1A production well is expected to be online by the end of January 2013, with the remainder to be drilled, completed, and commissioned in the first half of 2013. The Company has a 24 percent participating interest in the Jubilee field.
Darrell McKenna, Chief Operating Officer, stated, “Exiting the year with Jubilee production at its highest-ever level highlights Kosmos’ and the entire Jubilee team’s successful execution of our Phase 1 enhancement program, as well as the drilling and completion of new wells in Phase 1A. We have now produced over 50 million barrels of oil at the field. The new production capacity demonstrates not only that we have solved the well productivity issues, but further confirms excellent reservoir performance. Delivery of our project objectives at this world-class field positions us extremely well from an operational and financial standpoint as we exit the year and commence 2013.”
On the Deepwater Tano Block, the TEN (Tweneboa, Enyenra, Ntomme fields) Plan of Development was submitted to the government for approval in the fourth quarter of 2012. The TEN development will be Kosmos’ second FPSO project in Ghana. In addition, the Deepwater Tano companies are preparing to spud the Sapele-1 exploration prospect, with results anticipated by the end of February 2013. The Company’s participating interest in the Deepwater Tano Block is 18 percent.