Kosmos Energy Inks PSC for Ndian River Block Onshore Cameroon
Kosmos Energy has signed a production sharing contract covering the Ndian River Block located predominantly onshore the Republic of Cameroon through its wholly owned affiliate Kosmos Energy Cameroon HC. Kosmos is operator of the block, its second in Cameroon.
The Ndian River Block comprises approximately 2,510 square kilometers (620,000 acres) and occupies a coastal strip of the Rio del Rey Basin in northwestern Cameroon. The block is located about 100 kilometers (62 miles) west-northwest of the city of Douala and abuts the Cameroon/Nigeria border.
The Societe Nationale des Hydrocarbures (SNH), the national oil company of Cameroon, will be carried through the exploration and appraisal phases and has an option to back in to the project with an interest of up to 15% upon approval of a development plan.
"Our participation in a second block in Cameroon reaffirms our conviction that the region has great exploration potential. We will pursue our niche business strategy of targeting high-potential, combined structural/stratigraphic oil and gas opportunities in West Africa," said James C. Musselman, Kosmos Chairman and Chief Executive Officer. "We look forward to working again with SNH and our host government, the Republic of Cameroon."
Kosmos initially will focus on the underexplored northern extension of the late Cretaceous/lower Tertiary turbidite play, which has been successful in adjacent regions.
Previous oil and gas drilling offshore in the vicinity of the Ndian River Block has confirmed the presence of a working petroleum system, particularly in bordering portions of the Rio del Rey Basin, which has long-established production.
During late 2007 and early 2008, Kosmos plans to conduct a 2D seismic survey as part of the seven-year exploration and exploitation agreement. After processing and interpreting the seismic data, the company expects to drill an exploratory well.
In addition to Ndian River, Kosmos holds a 35% working interest in the Kombe-Nsepe Block onshore Cameroon. The company's partners on the block are Perenco, operator of the project with a 40% working interest, and SNH, which holds a 25% working interest. The partners expect to conduct a 2D seismic survey in late 2007.
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.
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