Kosmos Energy Agreement to Sell Ghana Business Terminated

Will Continue Exploration, Appraisal and Development Activity in Ghana



DALLAS, Wednesday, August 2010 [ME NewsWire]:

(BUSINESS WIRE)-- Kosmos Energy announced today that the company’s Share Purchase Agreement with ExxonMobil related to the acquisition of its Ghana business has been terminated.


Brian F. Maxted, Chief Operating Officer, commented, "First oil from the Jubilee Field phase one development is fast approaching. Moreover, we are very encouraged by our recent exploration results, other discoveries we are appraising, and additional developments being planned. We will continue to work with our block partners and the Government of Ghana to develop these resources that we believe offer multiple near-term opportunities to significantly enhance the value of these world-class assets."


Oil production from the Jubilee Field phase one development is on schedule to begin in the late fourth quarter 2010; and is expected to increase to a production plateau of 120,000 barrels of oil per day during the first half of 2011. The floating production, storage and offloading vessel (FPSO) is now in Ghana with final installation, hook-up and commissioning underway. On the exploration front, drilling continues on the side track of the Owo-1 discovery well on the Deepwater Tano Block, which will gather additional geological data and test a lower objective.


The Oninya exploration prospect, also on the Deepwater Tano Block, will be drilled immediately following completion of the Owo-1 side track.


"Our focus is to ensure that Kosmos is well-positioned operationally and financially to fulfill its roles as operator of the West Cape Three Points Block, technical operator for development of the Jubilee Field, and partner in the Deepwater Tano Block," Maxted added.


Kosmos Energy is the operator of the West Cape Three Points Block in which it holds a 30.875% interest. The company also holds an 18% interest in the Deepwater Tano block.


About Kosmos Energy:


Kosmos Energy is a privately held international oil exploration and production company with a focus in West Africa. Kosmos is led by a seasoned management and technical team with extensive international and West Africa experience, and a proven record of finding and developing significant oil reserves. With the financial backing of international private equity investors Warburg Pincus and Blackstone Capital Partners, the company possesses significant financial and operational capability to generate and participate in multiple high-impact upstream projects. For additional information, visit www.kosmosenergy.com.


For media enquiries, please contact:
Kosmos Energy
W. Greg Dunlevy,
214-445-9603
Executive Vice President & Chief Financial Officer