NEW YORK (TheStreet) -- Shares of Kosmos Energy (KOS) - Get Report were falling 8% to $8.26 Monday after the oil drilling company provided an update for its 2015 exploration drilling program.

Kosmos Energy said that its CB-1 exploration well in the Cap Boujdour permit area off Westerned Sahara encountered hydrocarbons. The well penetrated about 14 meters of net gas and condensate pay in clastic reservoirs over the gross hydrocarbon bearing interval of about 500 meters.

The oil drilling company said the well will be plugged and abandoned as the discovery was non-commercial.

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The CB-1 well was drilled on plan to a total depth of 5,700 meters at a net cost to the company of about $85 million.

"The CB-1 exploration well was designed to open the frontier Laâyoune Basin by testing the Al Khayr Prospect," Chairman and CEO Andrew G. Inglis said. "While not a commercial find, this first well in the basin has significantly de-risked further exploration by demonstrating a working petroleum system, including the presence of a hydrocarbon charge, as well as effective trap and seal. The well results confirm the substantial exploration potential of our 22,000 square kilometer Cap Boujdour block, which includes a diverse range of independent plays and fairways with multiple prospects."

Inglis continued, saying the company will "analyze the information gathered from CB-1 and integrate it with the additional 3D seismic data we recently acquired to refine our exploration plan, including deciding on the location and timing of a potential second well."

TheStreet Ratings team rates KOSMOS ENERGY LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate KOSMOS ENERGY LTD (KOS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 2991.0% when compared to the same quarter one year prior, rising from $4.17 million to $128.77 million.
• The current debt-to-equity ratio, 0.59, is low and is below the industry average, implying that there has been successful management of debt levels.
• The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, KOSMOS ENERGY LTD has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
• KOS has underperformed the S&P 500 Index, declining 20.13% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
• Net operating cash flow has significantly decreased to $71.35 million or 70.40% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
• You can view the full analysis from the report here: KOS Ratings Report