Kosmos plugs and abandons Gulf of Mexico well after expending US$24M

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Kosmos Energy (NYSE: KOS) (LSE: KOS) said Wednesday it has completed drilling the Oldfield exploration well (Kosmos 40%, Hess 60%) in the U.S. Gulf of Mexico.

Oldfield was designed to test a sub-salt Miocene prospect located in Mississippi Canyon, targeting approximately 10 mmboe net to Kosmos. The well did not encounter commercial quantities of hydrocarbons and will now be plugged and abandoned.

The Oldfield well is located in approximately 1,500 meters of water and was drilled to a total depth of approximately 6,500 meters.

Kosmos expects to record approximately $24 million of exploration expense related to the drilling of the Oldfield exploration well, split ~60:40 between 4Q19 and 1Q20.

Following the abandonment of the Oldfield well, the Valaris 8503 rig will move to the Kodiak field to begin drilling and completion operations on a new infill producer well.

Kosmos said it plans to drill three additional infrastructure-led exploration wells in the Gulf of Mexico in 2020.

The company holds rights in the Block 42 contract area in Suriname under a production sharing contract with the Government of Suriname’s Staatsolie Maatschappij Suriname N.V. (“Staatsolie”).