(Alliance News) - Kosmos Energy Ltd on Tuesday said it traded in line with expectations in the second quarter based despite net production falling at the lower end of prior guidance.
The oil and gas company - with operations in Ghana, Equatorial Guinea, the Gulf of Mexico, and the Mauritania-Senegal border - said it traded in line with guidance in the second quarter, with average sales volumes of 66,000 barrels of oil equivalent per day and 4.5 cargoes lifted.
Shares in Kosmos Energy were up 3.9% at 264.00 pence each in London on Tuesday morning. In New York, the stock was up 8.1% in pre-market trade.
Total net production averaged 52,000 barrels of oil equivalent per day in the second quarter, falling slightly below guidance after upgrade-related stoppages led to lower production levels in Equatorial Guinea.
Kosmos maintained full-year production guidance at between 53,000 and 57,000 barrels of oil equivalent per day, but predicted a year-end exit rate around 60,000 daily barrels of oil equivalent, benefiting from new wells being brought online.
The company's wells in Ghana netted 22,000 barrels of oil each day in the second quarter. In the same period, the company's assets in Equatorial Guinea saw net production of 9,400 daily barrels, hurt by both the planned downtime and also by higher oil prices reducing the company's entitlement.
Net production at its Gulf of Mexico operations averaged net 20,300 barrels of oil equivalent per day, consistent with the first quarter.
Overall, the Dallas, Texas-based firm said higher sales, strong performance in Ghana and improved oil prices enabled it to reduce net debt by around USD100 million in the second quarter of 2021.
By the end of the year, Kosmos expects to bring two more wells online in Ghana, adding gross production of around 15,000 to 20,000 barrels of oil per day. Kosmos plans to drill three infill wells with expected gross production of 4,000 barrels of oil per day. Meanwhile, in the Gulf of Mexico, the firm has contracted a rig to drill the Zora infrastructure-led exploration well early in the third quarter.
In Mauritania and Senegal, Kosmos noted that cost inflation and supplier delays have slowed development at its Greater Tortue Ahmeyim project, with first gas now expected in the third quarter of 2023.
Chair & Chief Executive Andrew Inglis commented: "Kosmos has an active second half of the year with planned infill wells in all three hubs supporting our near-term production growth. We also expect to restart exploration and appraisal drilling in the US Gulf of Mexico this quarter with the Winterfell appraisal and Zora ILX wells.
"With rising oil prices and a robust financial position, we are well placed to create shareholder value through the rest of 2021."
By Scarlett Butler; scarlettbutler@alliancenews.com
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Kosmos Energy (KOS)