Kosmos Energy Strikes Gas At Teranga-1 Offshore Senegal

Kosmos Energy Ltd. (NYSE:KOS) announced a new gas discovery at its Teranga-1 exploration well offshore Senegal. The well is located in the Cayar Offshore Profond block approximately 65 kilometers northwest of Dakar in nearly 1,800 meters of water. The aforementioned well was drilled to a total depth of 4,485 meters. The well encountered 31 meters (102 feet) of net gas pay in a good quality reservoir in the Lower Cenomanian objective.

To date, Kosmos has drilled five consecutive successful exploration and appraisal wells in this fairway with a 100% success rate. In the process, the company has discovered gross resource of approximately 25 trillion cubic feet (Tcf), and estimates that the area may hold more than 50 Tcf of resource potential.

Kosmos Energy operates as an oil and gas exploration and production company focused on under-explored regions in Africa. The company is based in Hamilton, Bermuda. The company's asset portfolio includes the existing production and other major project developments offshore Ghana, as well as exploration licenses with significant hydrocarbon potential offshore Ireland, Mauritania, Morocco and Suriname and onshore Cameroon.

Kosmos exited the first quarter of 2016 with $1.5 billion of liquidity and $826 million of net debt. This compares with $1.8 billion of liquidity and $614 million of net debt as of Dec 31, 2015. Total capital expenditures in the first quarter were $250 million. Capital expenditures are expected to decline in the second half of the year as the company plans to pause its drilling program in the second quarter and expects to see a reduction of spending in the third quarter. The forecast for full-year 2016 capital expenditures remains approximately $650 million.

Kosmos Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are ReneSola Ltd. (NYSE:SOL) , Seadrill Partners LLC (NYSE:SDLP) and Braskem S.A. (NYSE:BAK) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

BRASKEM SA (BAK): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

KOSMOS ENERGY (KOS): Free Stock Analysis Report

SEADRILL PTNRS (SDLP): Free Stock Analysis Report

Original post

Zacks Investment Research