(Alliance News) - Shares in Kosmos Energy Ltd fell Tuesday as it abandoned a well in the US Gulf of Mexico after it was found to contain water.
The stock was 7.0% lower in morning trade in London at 501.00 pence a share.
Dallas-based Kosmos was drilling the Resolution exploration well, in a 50/50 venture with oil major BP PLC, exploring a prospect in the "underexplored" western Garden Banks area.
However, it found water, and Kosmos will now plug and abandon the well.
Resolution was drilled in approximately 600 metres of water, reaching a depth of 7,700 metres. Kosmos expects to book costs of around USD55 million for the well.
Looking ahead, Kosmos will spud the Oldfield prospect in early December with results due in the first quarter of 2020. It also expects to drill a further three wells in 2020 in the Gulf of Mexico.
Kosmos also has assets in Ghana, Equatorial Guinea, Mauritania, and Senegal, amongst others.
By George Collard; georgecollard@alliancenews.com
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Kosmos Energy (KOS)