Sharecast - The London-listed firm said that in terms of production, it achieved around 68,200 barrels of oil equivalent per day, with sales amounting to about 73,100 equivalent daily barrels during the quarter.
Notably, the firm marked the start of the Jubilee South East development offshore Ghana.
Additionally, Kosmos noted its post-quarter-end announcement of an exploration achievement in the US Gulf of Mexico, confirming the discovery of oil through the Tiberius infrastructure-led exploration (ILX) project.
In another strategic move, Kosmos assumed operatorship and increased its working interest in Yakaar-Teranga offshore Senegal, pending customary government approvals.
Additionally, the company said it had taken steps to optimise its financial structure by repaying the Gulf of Mexico term loan, which was expected to lower its cost of capital and simplify its capital structure.
The company reported total revenues of $526m for the quarter, equating to $78.24 per barrel of oil equivalent, excluding the impact of derivative cash settlements.
Production expenses amounted to $139m, or $20.63 per boe, while capital expenditures reached $193m during the third quarter.
“Kosmos continues to create value for its stakeholders through the consistent delivery of its strategy to grow production, advance its advantaged oil and LNG projects, and add resource through infrastructure-led exploration,” said chairman and chief executive officer Andrew Inglis.
“Production in the quarter increased by around 17% versus the second quarter following the successful startup of the Jubilee South East development, with three producers brought online, taking gross field production up to around 100,000 barrels of oil per day, with continued growth expected.
“In addition, Kosmos advanced its two key development projects at Winterfell and Tortue Phase 1.”
When online, Inglis said the projects, together with Jubilee South East, were expected to increase production by around 50% from the second half of 2022, generating the cash flow inflexion Kosmos was working towards.
“Looking to options for future growth, Kosmos recently announced the Tiberius oil discovery in the US Gulf of Mexico, as well as the assumption of operatorship of the Yakaar-Teranga gas fields offshore Senegal.
“These low-cost, lower-carbon oil and gas projects are expected to provide the next phase of growth for the company beyond 2024.
“We plan to balance the pace and working interest of these future projects to ensure we can manage our growth and generate material free cash flow.”
Reporting by Josh White for Sharecast.com.
