DALLAS--(BUSINESS WIRE)--Kosmos Energy announces today that the Hyedua-1 well drilled offshore the Republic of Ghana on the Deepwater Tano Block has encountered a significant light oil accumulation based on the results of drilling, wireline logs and reservoir fluid samples. Initial data indicate that the Hyedua-1 well confirms Kosmos’ Mahogany Field discovery is a significant oil accumulation and demonstrates a sizable extension of the field. The Hyedua-1 well was drilled approximately 5.3 kilometers (3.3 miles) to the southwest of the Mahogany-1 discovery well, which is located on the West Cape Three Points Block. Kosmos announced the Mahogany-1 well’s oil discovery on June 18, 2007.
The Hyedua-1 well encountered a gross reservoir interval of 202 meters, which includes 108 meters of high-quality stacked reservoir sandstones and net hydrocarbon-bearing pay of 41 meters. In addition, the results of logging and pressure testing suggest the reservoir sands are in communication with the Mahogany discovery, indicating combined hydrocarbon columns of 361 meters in a continuous accumulation extending across the Deepwater Tano and West Cape Three Points licenses. The well will be sidetracked to acquire core data over the reservoir interval prior to casing and suspending it as a potential development well. The Hyedua-1 well, which was drilled in water depths of 1,530 meters, reached a total depth of 4,002 meters.
Planning is under way to appraise the Mahogany Field. A high-resolution, 910-square kilometer 3D seismic survey that will cover the combined feature on the West Cape Three Points and Deepwater Tano blocks and a program to drill up to three additional appraisal wells are planned for late 2007.
“The success of the Hyedua-1 well and its confirmation of our Mahogany Field discovery is a significant event for the Republic of Ghana and Kosmos,” said James C. Musselman, Kosmos Chairman and Chief Executive Officer. “We are pleased that the second well in our multi-well exploration and appraisal drilling program is a success and plan additional appraisal drilling later this year and in 2008. We look forward to working with the government and people of Ghana, as well as our block partners, to help develop and produce this vital natural resource.”
Kosmos and its field partners used the “Belford Dolphin” – a dynamically positioned fifth-generation deepwater drillship – to drill the Hyedua-1 well. This is the first exploration well to be drilled under the Deepwater Tano Block’s seven-year exploration agreement.
Kosmos holds an 18% interest in the Deepwater Tano Block. Tullow Ghana Limited, an affiliate of Tullow Oil plc (LSE: TLW.L), is block operator and has a 49.95% interest; a subsidiary of Anadarko Petroleum Corporation (NYSE: APC) has an 18% interest; and Sabre Oil and Gas Limited has a 4.05% interest in the block. With a 10% participating interest in the project, Ghana National Petroleum Corporation (GNPC) will be carried through the exploration and development phases.
The Deepwater Tano Block comprises 1,106 square kilometers (273,298 acres) in water depths ranging from 200 meters to 2,060 meters (approximately 656 feet to 6,758 feet).
Kosmos Energy is block operator and holds a 30.875% interest in the West Cape Three Points Block. A subsidiary of Anadarko Petroleum Corporation (NYSE: APC), has a 30.875% interest; Tullow Ghana Limited, an affiliate of Tullow Oil plc (LSE: TLW.L), has a 22.896% interest; the E.O. Group has a 3.5% interest in the block; and Sabre Oil and Gas Limited has a 1.854% interest in the block. With a 10% participating interest in the project, Ghana National Petroleum Corporation (GNPC) will be carried through the exploration and development phases.
The West Cape Three Points Block comprises 1,761 square kilometers (435,200 acres) in water depths ranging from 50 meters to 1,800 meters. The Mahogany-1 discovery well is located 63 kilometers from the Ghanaian coastline and 132 kilometers southwest of the port city of Takoradi and is situated in the Tano Basin.
About Kosmos Energy:
Kosmos Energy is a privately held international oil exploration and production company with a focus in West Africa. Kosmos is led by a seasoned management and technical team with extensive international and West Africa experience, and a proven record of finding and developing significant oil reserves. With the financial backing of international private equity investors Warburg Pincus and Blackstone Capital Partners, the company possesses significant financial and operational capability to generate and participate in multiple high-impact upstream projects. For additional information, visit www.kosmosenergy.com.