Kosmos Energy (KOS) Provides Update On Suriname Operations

Kosmos Energy (NYSE:KOS) provided an update on current operations in Suriname.

Prior to reaching the target interval, the Anapai-1 well drilling in Block-45 offshore Suriname faced shallow bore hole stability problems. Kosmos Energy and its partner intend to drill the Anapai-1A well again, maintaining similar objectives.

The well design has been altered to deal with the operational hindrances. The drilling of Anapai-1A is expected to start soon and is expected to take about 50-60 days. Results of the operation are anticipated early in the third quarter. Till date, the company has incurred about $20 million on drilling of the Anapai well.

In Block 42, the partnership is concluding the first of up to three independent tests of prospects in the block. This comprises the Pontoenoe prospect, which shares similar trend from other discoveries in Guyana. The drilling is projected tocommence in the third quarter of 2018.

The company owns interest in the Block 45 and Block 42 contract areas under production sharing contracts with the Government of Suriname’s Staatsolie Maatschappij Suriname N.V. (Staatsolie).

Kosmos Energy, the exploration operator of Block 45, holds 50% interest. Chevron Corporation (NYSE:CVX) , its partner, holds the remaining interest of 50%.

As an exploration operator of Block 42, Kosmos Energy holds 33.33%.The other partners include Chevron and Hess Corporation (NYSE:HES) holding 33.33% each, respectively.

Price Performance

During the past three months, Kosmos Energy’s shares have gained 35.5% compared with the industry’s 16.5% rally.

Zacks Rank & Other Key Pick

Kosmos Energy currently carries a Zacks Rank #2 (Buy).

Another top-ranked player in the same sector is Nine Energy Service, Inc (NYSE:NINE) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nine Energy Service is engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company pulled off a positive earnings surprise of 28.57% in the preceding quarter.

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Kosmos Energy Ltd. (KOS): Free Stock Analysis Report

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