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LONDON (Alliance News) - Kosmos Energy Ltd said Wednesday it will abandon its Pontoenoe-1 well offshore Suriname after not finding any commercial hydrocarbons.
The well, on Block 42, was drilled to a depth of 6,194 metres in 2,497 metres of water, testing late Cretaceous reservoirs.
A high-quality reservoir was found, Kosmos said, but the main objective was found to be water bearing. Kosmos believes the prospect failed due to "a lack of trap".
Chairman & Chief Executive Andrew Inglis commented: "We are in the early stages of exploring the emerging Suriname-Guyana basin, and given the indications of a mature source, quality Cretaceous reservoir, and the independent nature of the prospectivity, we believe there is significant remaining potential in Block 42. Our current plan is to test the next prospect in 2020.
Operationally, Kosmos expects "substantial" free cash flow for 2018 and said it is on track to meet its net leverage target. The cash flow, it said, will allow it to pay a dividend for the first quarter of 2019.
Third-quarter production from the TEN field was 62,600 barrels of oil per day for the three months to September, and from Jubilee 94,500 barrels a day. This compares to 61,500 barrels and 67,900 barrels, respectively, in the second quarter. Both fields are offshore Ghana.
Kosmos brought a new well into production on each of the fields during the quarter.
The company hopes to bring Jubilee production to 120,000 barrels a day and at TEN to 70,000 by the end of 2019.
Equatorial Guinea production was 42,500 barrels of oil per day from 46,000 barrels in the second quarter. Kosmos's fields in Equatorial Guinea are Ceiba and Okume, both offshore.
In Mexico, production was 24,000 barrels of oil equivalent per day - this came from its mid-September acquisition of Deep Gulf Energy.
Looking ahead, Kosmos expects 2018 capital expenditure at USD400 million, from its original budget of USD300 million. The difference comes from extra capex on its acquired Gulf of Mexico assets.
Shares were untraded on Wednesday in London, last quoted at 710 pence each.
