Kosmos Energy (KOS) Q1 2012 Earnings Call May 7, 2012 11:00 a.m. ET Executives Brad Whitmarsh - VP IR Brian Maxted - President and CEO Greg Dunlevy - EVP and CFO Darrell McKenna - COO Analysts Edward Westlake - Credit Suisse Brendan Warn - Jefferies & Company Doug Leggate - Bank of America Merrill Lynch Anish Kapadia - TPH Group Al Stanton - RBC Capital Markets Presentation Operator
We may refer to certain non-GAAP financial measures in our discussion. Management believes these measures are important in looking at the company's historical and future performance, and these are commonly referred to metrics in our industry.These measures are provided in addition to and should be read in conjunction with the information contained in our financial statements prepared in accordance with GAAP. Those are included in our SEC filings. At this time, I'm going to turn the call over to Brian. Brian Maxted Thanks, Brad, and good morning, everyone. At Kosmos, we've had a fast start to 2012 and I plan to provide a high-level overview our results today before handing over to Greg for a financial discussion. Darrell, will then wrap up our prepared comments with an operations review. Kosmos' first quarter this year included a number of strong results. The high level and priority strategy of organic growth through exploration success by unlocking new billion barrel (inaudible) petroleum systems was further enhanced by our capture for significant acreage position offshore Mauritania, as well as an expanded position onshore Cameroon. At Mauritania, we executed three petroleum agreements covering over 6.5 million gross acres, which we'll operate with a 90% working interest. These new blocks reside in the proven offshore Mauritania salt basin and include the air board fairway of four [ph] geological concept the upper cretaceous stratographic play. Our initial plans for the acreage will be to accelerate a significant seismic program and we're actively looking to secure seismic vessels for this position and also across the Atlantic in our large Suriname position as well. Adding in the new acreage in Cameroon and Mauritania to our existing already exciting portfolio in Cameroon, Morocco and Ghana, we have now captured close to 24 million gross acres, the substantial prospectivity. And we're not done building our portfolio. We will continue to aggressively but selectively identify and access additional opportunities. All with the goal of drilling multiple new basin (inaudible) wells each year beginning late in 2012 with our first operated Cameroon well.
For next year, we're targeting multiple wells in our offshore Morocco position. And to that end, we have recently completed a large 3D seismic acquisition program just under 5,000 square kilometers in our Agadir basin blocks. A portion of the data has already been processed and interpreted and I anticipate we'll have a number of large prospects identified later this year as potential 2013 drilling candidates.And we are filling in the plans beyond 2013 with our large Suriname position, Mauritania and others to follow. I've very pleased with the progress we've made in adding [ph] our portfolio and bringing forward acreage capture and seismic acquisitions. In Ghana, our first quarter activities were highly focused on optimizing our Jubilee program and finalizing the appraisal and pre-development of the TEN project. At Jubilee, we have continued to gain valuable reservoir and production information that gives us further confidence that the production issues we are experiencing are related to the well bore region and not to the reservoir. As part of our ongoing Phase 1 enhancement program, we have now performed several different procedures to address the near well bore impacts. We are continuing to watch the performance of the side trap that came online early this year utilizing a new mechanical completion design. In addition, we have now performed acid stimulations on a couple of existing Phase 1 producers. While it's still very early in analyzing the outcomes, the results are encouraging. Enough so that the partners have committed to performing further acid stimulations on multiple (inaudible) through the middle part of this year. In addition, we're implementing the Phase 1A development at the field, with new wells scheduled to come online in our program of Phase 1 enhancement. The outlook for production growth at Jubilee in the second half of the year is now strong.
At the TEN developments on Deepwater Tano we've had really outstanding results in 2012 both the Enyenra-4 and Ntomme-2 wells finding more oil than expected. In addition we have a very strong flow test at Owo-1, the original discovery location for Enyenra field. We are on a schedule to declare the TEN project commercial and submit the plan of development to the government in the third quarter of this year.Read the rest of this transcript for free on seekingalpha.com