(Alliance News) - Kosmos Energy Ltd said Wednesday it has plugged and abandoned the Oldfield exploration well in the US Gulf of Mexico, following the completion of drilling operations.
The Oldfield well's purpose was to test a sub-salt Miocene prospect in the Mississippi canyon, targeting around 10 million barrels of oil equivalent net to Kosmos.
Kosmos holds a 40% stake in the well, with the remainder held by New-York-based energy firm Hess Corp.
The well was drilled to a total depth of 6,500 meters; however the well did not encounter commercial quantities of hydrocarbons, leading to its abandonment.
Kosmos will record an exploration expense of USD24 million related to the drilling, 60% of which will hit the fourth quarter of 2019, and the remainder the first quarter of 2020.
Following the well's abandonment, the Valaris 8503 rig will be moved to the Kodial field to start drilling operations on a new infill producer well.
Looking ahead, Kosmos Energy expects to drill three additional wells in the Gulf of Mexico throughout 2020.
Shares in Kosmos Energy - which is based in Dallas, Texas - were down 1.7% at 453.05 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Kosmos Energy (KOS)