Kosmos' operating updates for Q2 2024

Kosmos Energy announced its financial and operating results for the second quarter of 2024

In Ghana, production averaged approximately 41,900 boepd net in the second quarter of 2024. Kosmos lifted four cargos from Ghana during the quarter, in line with guidance.

At Jubilee (38.6% working interest), oil production in the second quarter averaged approximately 87,300 bopd gross with one producer well brought online in April and one water injector well brought online in June.

At TEN (20.4% working interest), production averaged approximately 19,300 bopd gross for the second quarter, slightly above expectations. Uptime on the TEN FPSO was approximately 99% for the second quarter.

Production in Equatorial Guinea averaged approximately 24,200 bopd gross and 8,500 bopd net in the second quarter. Kosmos lifted 0.5 cargos from Equatorial Guinea during the quarter, in line with guidance.

The Greater Tortue Ahmeyim liquefied natural gas (LNG) project continues to make good progress in Mauritania and Senegal, with the first batch of four wells completed with expected production capacity significantly higher than what is required for first gas.

Helium and hydrogen presence higher after re-drilling. (Image source: Adobe Stock)

The exceptional existing hole conditions of the ITW-1 well in Tanzania allowed Helium One Global to further re-enter another 168m into the fractured basement, reaching a total depth of 1129m MD, beneath the 9⅝" shoe

The re-drilling not only revealed a near-continuous helium and hydrogen presence all the way till total depth but also they were notably higher than those which were encountered whilst drilling the overburden section during Phase II. 

Core hydrogen demand will be defined by the refining and petrochemicals sectors, according to a report by GlobalData.

Testing phase

The next phase of the operations now involves preparing the wellbore for running the 7" slotted casing and cementing it in place. Once this is complete, the Company will then run a completion string in the hole comprising of tubing and packers to allow multiple testing of the two zones (the fractured Basement and the faulted Karoo Group) during the EWT.

Lorna Blaisse, chief executive officer, said, "We are pleased that we have been able to re-enter and deepen the ITW-1 well as planned. It has been very encouraging seeing the helium and hydrogen shows continuing whilst drilling this deeper section, and we look forward to evaluating these results further through the EWT.

"I'd like to extend my thanks to the wider team in a safe execution of this drilling phase, as well as the continued support from the Ministry of Minerals and Mining Commission in Tanzania."

Helium One has discovered an estimated 98.9 bcf of helium, representing a major helium discovery in the global context of rapidly diminishing supply and growing demand for the resource.

The PEL 96 Joint Venture currently intends to reprocess the existing seismic data. (Image source: Adobe Stock)

Tower Resources has been notified by the Namibian MME of its agreement to the extension of the Initial Exploration Period of PEL 96 to October 31, 2024 and has invited the Company to apply to enter the First Renewal Period of PEL 96, for a period of 2-3 further years. The MME has also agreed to defer the Company's commitment to acquire 1,000 km2 of new 3D seismic data to the First Renewal Period.

The remaining work commitment for the Initial Exploration Period, comprising the oil seep satellite analysis, play fairway analysis, development of an updated prospect and lead inventory, and the high-grading of acreage, is already substantially complete. However, the Company is continuing to work on the evaluation of large stratigraphic and structural leads and prospects and plans to reprocess the previously acquired 2D seismic data over large areas of the license both in the remainder of the Initial Exploration Period and in the First Renewal Period, in order to support the optimal selection of an area for the further 3D data acquisition.

The evaluation of leads and prospects has required further time commitment due to the encouraging discovery of a large number of substantial stratigraphic traps, in addition to the large anticlines and other structural traps that had already been identified. Our basin modelling work, completed in 2023, had previously identified source rocks deep within the PEL96 portion of the Dolphin Graben calculated to be mature for in excess of 100 to 150 billions of barrels of oil generation, and also identified well-defined migration paths for this oil. Since that time, the Company has reviewed and interpreted in excess of 20,000 line kilometres of 2D seismic data across PEL 96. This has resulted in the identification of a substantial number of very large stratigraphic traps in five main areas of the license, favourably located adjacent to those deeper source rocks of the Dolphin Graben and the migration paths we identified.

The results of this intensive technical effort have given Tower new and favourable insights into the prospectivity of the acreage, however, it cannot acquire new 3D seismic data over all of them in the next phase of work. Due to the variability of quality or coverage of data over some of these leads, the PEL 96 Joint Venture currently intends to reprocess the existing seismic data in these areas to extract as much information as possible from the original data files and significantly improve seismic data quality. The seismic reprocessing work will enable the PEL 96 Joint Venture to make a final choice regarding the optimal 3D data acquisition area - a view Tower shared with MME in the Company's Technical Advisory Committee meeting in Windhoek last week.

The Company and its partners, alongside the MME, are all pleased by the number of leads and prospects that are already identified, and look forward to sharing more information about these when the further work has been completed.

Tower Resources Chairman & CEO, Jeremy Asher, commented, "We are grateful to the Minister, the Hon. Tom K Alweendo MP, the Executive Director, Mr Penda Ithini, and the Petroleum Commissioner, Ms Maggy Shino, for their continued support and enthusiasm for our PEL 96 project. Our view of the prospectivity of PEL 96 has improved greatly since we began the current phase of work in 2019, and we look forward to having sufficient data quality to share a more detailed picture of the structures we wish to explore further with the 3D data acquisition, as soon as we have it. In the meantime, we plan to prepare a more detailed report summarising our findings to date, the main conclusions of which we will share with investors in due course."

The deal includes an initial three-year exploration period. (Image source: Adobe Stock)

Eni has received the approval of the Council of Ministers - Ivory Coast to initiate activities on four oil blocks in the region 

Under the production-sharing agreements, an initial three-year exploration period is in the pipeline for blocks CI-504, CI-526, CI-706, and CI-708, requiring investments of a minimum US$80mn. 

Ivory Coast is aiming to triple output by 2027, and position itself as a major regional oil and gas producer and energy hub. Supporting exploration activities in the region, Viridien (formerly CGG) has ensured the best possible results from legacy 3D seismic by deploying its latest proprietary imaging technologies and high-performance computing.

Baleine production

Eni, which has been in Ivory Coast since the 1960s through its subsidiary Agip Côte d’Ivoire, began oil production at the Baleine field last year. The field holds estimated reserves of 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.