(“Kosmos”) (NYSE: KOS) announced today its 2013 planned capital program, which totals approximately $525 million. Development activities offshore Ghana comprise approximately 55 percent of the total anticipated amount, with the remaining 45 percent allocated for exploration and appraisal activities across Kosmos’ global exploration portfolio.
In addition, the Company estimates Jubilee field production to average between 105,000 and 115,000 barrels of oil per day in 2013, with the midpoint of the range representing an increase of greater than 50 percent from the 2012 average. Kosmos anticipates a year-end exit rate for 2013 to be above the high end of its annual guidance range. Included in the estimate is a planned two-week shutdown for regular maintenance at the Jubilee floating production, storage, and offloading vessel (FPSO).
Kosmos’ net interest in the estimated 2013 production average is approximately 25,150 barrels of oil per day, at the midpoint of the range. Based on the Company’s crude oil inventory position at the beginning of the year and its expected net portion of 2013 production, Kosmos anticipates selling nine crude oil cargoes during the year. Each crude oil cargo sold represents slightly less than one million barrels of oil and is anticipated to continue trading consistent with Brent crude pricing.
Brian F. Maxted, Chief Executive Officer, stated, “Kosmos’ strategy of organic growth through exploration and development success is highlighted by our 2013 capital program. Our plans for the year include advancing the development of the world-class Jubilee field, as well as further progressing our other discoveries offshore Ghana. Jubilee continues to demonstrate outstanding performance, with current field deliverability substantially above the FPSO capacity. This is a result of resolving the original well productivity issues and completing new Phase 1A wells, which are showing tremendous delivery. Throughout the year, we are challenging the Jubilee teams to identify opportunities to meaningfully enhance throughput of the production facility, allowing us to bring forward substantial value from the field.”