CURRENT OPERATIONS

Kosmos’ active operations in Western Sahara are limited to the Boujdour Maritime contract area. This area is located approximately 70 kilometers off the coast of Western Sahara in the Atlantic Ocean.

Kosmos has held rights to conduct exploration offshore Western Sahara since 2006 under earlier petroleum agreements with the Government of Morocco’s Office National des Hydrocarbures et des Mines (ONHYM). The Boujdour Maritime contract area is covered by a petroleum agreement effective in July 2016.

Kosmos operates the Boujdour Maritime license with a 55 percent equity interest along with ONHYM (25 percent) and Capricorn exploration and development Company Limited, a wholly-owned subsidiary of Cairn Energy PLC (20 percent).

KEY STATS

Boujdour Maritime

Kosmos Completes First Exploration Well

In late 2014, Kosmos began drilling its first exploration well offshore Western Sahara to test the Al Khayr prospect, a large anticlinal structure containing several stacked Cretaceous-age reservoirs.

On March 2, 2015, Kosmos announced that the CB-1 exploration well 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. The discovery is non-commercial, and the well will be plugged and abandoned.

The CB-1 well was designed to open the frontier Laayoune Basin. While not a commercial find, this first well in the basin has significantly de-risked further exploration by demonstrating a working petroleum system, including the presence of a hydrocarbon charge, as well as effective trap and seal. The well results confirm the substantial exploration potential of the block, which includes a diverse range of independent plays and fairways with multiple prospects. Going forward, the key exploration challenge is finding reservoirs of commercial size and quality.

We will analyze the information gathered from CB-1 and integrate it with other 3D seismic data we acquired to refine our exploration plan. Under the Boujdour Maritime petroleum agreement, we expect to acquire additional 3D seismic and use it with our existing technical knowledge to decide whether to drill a second well.

Responsible Resource Development

Kosmos is confident responsible resource development in Western Sahara has the potential to create significant long-term social and economic benefits for the people of the territory. Kosmos, working with its partners including the Government of Morocco, will only proceed with development in accordance with international law and good practices.