Kosmos Energy Ltd.
) announced that it has entered into three farm-out agreements
), covering three blocks in the Agadir Basin, offshore Morocco.
Under the terms of the agreements, BP will acquire a
non-operating interest in each of the Essaouira Offshore, Foum
Assaka Offshore and Tarhazoute Offshore blocks. The U.K. oil
giant will fund Kosmos' share of the cost of one exploration well
in each of the three blocks. BP will also pay its proportionate
share of past costs. However, the approval of the deal by the
Moroccan Government is pending.
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KOSMOS ENERGY (KOS): Free Stock Analysis
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Kosmos Energy operates as an oil and gas exploration and
production company focusing on the 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, Suriname and onshore Cameroon.
The company is making great strides in the under-explored regions
in Africa. Recently, it received regulatory approval for its
Tweneboa-Enyenra-Ntomme (TEN) discoveries in Ghana.
Located in the Deepwater Tano Block, 60 kilometers (37 miles)
offshore Ghana and approximately 30 kilometers (18 miles) west of
the Jubilee Field, the TEN project would be a major expansion for
Kosmos. The project is expected to start delivering oil from
2016, with a plateau production rate of 80,000 barrels of oil per
Kosmos stock trades in a 52-week range of $9.55 to $13.05. The
stock has been trading near the lower end for the greater part of
last month with intraday high touching the upper end on Oct 15,
before settling at $10.73. Moreover, with volatile industry
fundamentals and limited geographic diversification, we do not
see any significant price upside for the Western Refining stock
in the near-to-medium term.
Kosmos Energy holds a Zacks Rank #3, which is equivalent to a
Hold rating for a period of one to three months. However, there
are other stocks in the sector -
Vermilion Energy Inc.
Baytex Energy Corp.
) - which are expected to outperform over the next few months and
carry a Zacks Rank #1 (Strong Buy).