Kosmos Comes Up Dry Onshore Cameroon
Kosmos Energy Ltd. said it failed to find commercial reservoirs at an exploration well onshore Cameroon, sending the oil-and-gas company's shares falling after hours.
The Sipo-1 exploration well, drilled on the Ndian River Block in the Rio del Rey Basin, was targeting the Miocene Isongo Formation. Oil and gas shows evidenced during drilling indicated a working petroleum system, but no commercial reservoirs were discovered. The company holds a 100% participating interest in the Nvidian River Block.
Shares were down 12% to $10.50 after hours.
The well will be plugged and abandoned and the drilling rig will be released, the company said. Kosmos will assess the results to determine future exploration plans in the area.
The company said it will record about $75 million in exploration expenses in its second-quarter results.
Two weeks ago, Kosmos reported that it swung to a first-quarter profit as total revenue nearly doubled.
The stock is up 18% over the past 12 months, through Monday's close.
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