Kosmos Energy Ltd, a partner working in Ghana’s Jubilee oil fields in the Western region, has announced that it has generated a net loss of $108.3 million, or $0.28 per diluted share as compared to a net loss of $75.2 million or $0.20 per share in the same period last year.
Chairman and Chief Executive Officer (CEO), Andrew G. Inglis, said the company was at an inflection point in the company’s history with production increasing while capital requirements were decreasing.
“Kosmos is well positioned to deliver value from both our discovered gas resource offshore Mauritania and Senegal, as well as from new high-graded opportunities our team has identified.”
Second quarter 2016 oil revenues were $46 million versus $119 million in the same quarter of 2015, on sales of one cargo of 0.9 million barrels of oil for 2016 as compared to two cargos totaling 1.9 million barrels in 2015.
Second quarter 2016 oil revenues exclude $45 million of derivative settlements.
Realized oil revenue, including the impact of the company’s hedging programme, was $95.61 per barrel of oil sold in the second quarter of 2016 compared to $82.96 per barrel of oil sold in the year-ago quarter.
At the end of the quarter, the company was in a net over-lift position of approximately 110 thousand barrels of oil.
Production expense for the current quarter was $33 million, or $34.47 per barrel versus $20 million or $10.40 per barrel in the second quarter of 2015.
The overall increase in production expense during the second quarter was primarily attributable to the cost of additional operating procedures related to the turret bearing issue, as well as the impacts associated with lower production.
Exploration expenses totaled $36 million for the second quarter compared to $15 million in the same period of 2015.
“Capital expenditures are expected to ramp down in the second half of the year as we paused our drilling programme in late May and expect to see a reduction of TEN spending after achieving first production during the third quarter. The forecast for full-year 2016 capital expenditures remains approximately $650 million. Kosmos exited the second quarter of 2016 with $1.2 billion of liquidity and $1,058 million of net debt.
“The TEN project remains on schedule and on budget, with the project now 99 percent complete and expected to deliver first oil shortly, consistent with the operator’s guidance.
“Eight of the 11 previously drilled wells have now been completed. Hook-up and commissioning of the FPSO, connecting the pre-drilled wells to the vessel via the subsea infrastructure is nearing completion.”