KOS - Kosmos Energy completes farm-down of frontier exploration assets to Shell
Kosmos Energy (KOS) +6.1% pre-market after closing the previously announced sale to Royal Dutch Shell of its offshore oil and gas exploration assets in Suriname, Sao Tome & Principe and Namibia for ~$95M.The agreement includes contingent payments of $50M upon each commercial discovery from the first four exploration wells drilled across the asset portfolio, capped at $100M total; when the deal was first announced in September, three of the four wells were planned for 2021.Kosmos expects the transfer of interests in South Africa will occur in 2021.Post-completion, Kosmos says it retains an exploration portfolio with more than 6B barrels of gross resource potential in proven basins in West Africa and the Gulf of Mexico.Kosmos will soon begin to benefit from gas sales to Asia via its Ahmeyim Tortue projects, Fluidsdoc writes in a bullish analysis published recently on Seeking Alpha.
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Kosmos Energy completes farm-down of frontier exploration assets to Shell