Hamilton, Bermuda-based Kosmos Energy Ltd.KOS has announced that the CB-1 exploration well located in the Cap Boujdour permit area offshore Western Sahara has encountered hydrocarbons. The well penetrated approximately 14 meters of net gas and condensate pay in clastic reservoirs over a gross hydrocarbon bearing interval of approximately 500 meters.
Located approximately 170 kilometers offshore in 2,135 meters of water, the CB-1 well was drilled on plan to a total depth of 5,700 meters at a net cost to Kosmos of approximately $85 million. Kosmos has been holding rights to conduct exploration activities in the Cap Boujdour permit area since 2006 under a petroleum agreement with the Government of Morocco's Office National des Hydrocarbures et des Mines ("ONHYM").
Kosmos operates the Cap Boujdour license with 55% equity and is joined by its partners ONHYM (25%) and Capricorn Exploration and Development Company Limited, a wholly owned subsidiary of Cairn Energy plc (20%).
Kosmos Energy Ltd. operates as an oil and gas exploration and production company focusing on under-explored regions in Africa. 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 Energy currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months. Better-ranked stocks in the same industry include Valero Energy Partners L.P. VLP , Sunoco LP SUN and Hallador Energy Co. HNRG . All these stocks sport a Zacks Rank #1 (Strong Buy).