Kosmos Energy Ltd. · NYSE:KOS
Kosmos Energy — Investor Presentation (2008)
18 slides from Kosmos Energy's investor presentation, 2008
Slide 1: Kosmos Energy: Creating Value from African Exploration
KOSMOS ENERGY Kosmos Energy Creating Value from African Exploration Brian F. Maxted Founding Partner and COO Songa Saturn Drillship Mahogany-2 Well Test
Slide 2: Key Messages
Key Messages KOSMOS ENERGY In recent years the upstream petroleum industry, including in Africa has experienced a progressively challenging operating environment and has suffered deteriorating new field wildcat results Notwithstanding this, Kosmos’s has created competitive advantage in its West
Slide 3: Business Environment
Business KOSMOS ENERGY Environment 4000 20 3424 15 3000 $/BBL 10 5 2000 Source: HL 0 1493 2002 2003 2004 2005 2006 1000 Year Finding Cost Finding & Development Cost After IHS 0 1987 2007 Utilization Worldwide # of Companies in Africa Rate % Deepwater Rig Market 100 Increasing commodity price 90 80
Slide 4: Industry Performance
Industry 500 KOSMOS ENERGY Performance 400 300 # of Exploration wells in Africa 200 7500 100 Exploration 0 5000 Total Discovery 87 90 93 96 99 2 5 results in 2500 Volume in Africa (MMBOE) Africa 30 Number of 0 20 wildcat wells 87 89 91 93 95 97 99 1 3 5 7 Success Rate (%) increasing 150 10 Total
Slide 5: Objectives
Objectives KOSMOS ENERGY Combine a proven management team/staff with strong private equity partners to build a highly marketable E & P enterprise pure West Africa play value of $1-2 Billion $300 Million of private equity seed capital serial oil finding and accelerated development 5 to 7 y
Slide 6: Strategy
Strategy KOSMOS ENERGY Focus ‘emerging’ basins Reserves Creaming Niche Curve combination traps Industry Focus Opportunities accessible, large, long life, high potential - play Kosmos diversity and prospect Portfolio dependency, good commercial terms n t ier rging w ing r in g Time Fro Eme o tu
Slide 7: Start-Up To Success
Start-Up KOSMOS ENERGY To Success Value Formulated business (Reserves) plan and secured Production financial partners Today Executing strategy and finding additional 9 Appraisal & Development funding 9 Exploration 9 Portfolio l u e 9 Warburg Pincus Plan & Finance v a The Blackstone Group 2004 2005
Slide 8: Execution – Portfolio
Execution – KOSMOS ENERGY Portfolio Morocco Offshore Boujdour Kosmos 75% Nigeria OPL320 Benin Kosmos 36% Block 4 Kosmos 40% Cameroon N’Dian River Kosmos 100% Kombe-Nsepe Kosmos 35% Captured assets Ghana West Cape Three Points from 2004-2006 Kosmos 34.5% 5 countries Deepwater Tano Kosmos 20% 7 lic
Slide 9: Execution – Drilling
Execution – KOSMOS ENERGY Drilling Morocco Benin Nigeria Ghana Cameroon Exploration Assets Operated Drilled 5 Non-operated exploration wells Seismic and 1 appraisal Drilling well testing 3 of 5 Exploration assets during Appraisal 2007-3Q’08 9
Slide 10: Results
Results KOSMOS ENERGY Opened a new BBO+ Field Size hydrocarbon MMBOE West Africa Discoveries 1990-2007 Kosmos province in Ghana 1800 with 2 discoveries 1600 Made a sub- 1400 commercial find in 1200 Jubilee Zafiro Fie Nigeria Bonga ld s Field 1000 Bosi i ze Drilled a dry hole Dalia env Size 800
Slide 11: Ghana Tano Basin
Ghana KOSMOS ENERGY Tano Basin A Ghana Jubilee Odum Unit Discovery M-2 Jubilee Field O-1 A1 Hyedua-1 Mahogany-1 Giant discovery Tano Deep Jubilee Field Phase 1 development West Cape Three Points Development Full-field delineation Discovery Exploration/Appraisal Key Prospect Odum Field 0 Km 10
Slide 12: Ghana Development
Ghana KOSMOS ENERGY Development Modec FPSO Ohdo Jubilee Field Tullow Oil plc Unit Operator Kosmos Energy Technical Operator for Development Phase 1 C. 300 MMBO C. $3 Billion Sub-Sea/FPSO production facilities First oil 2010 (3 years from discovery to development) Up to 120,000 BOPD Sub-Sea
Slide 13: Ghana Prospects
Ghana KOSMOS ENERGY Prospects Mahogany-3 Owo Hyedua-1 Mahogany-2 A Tweneboa Onyina Mahogany-1 Teak Odum-1 A1 Tertiary Multiple Upper Odum Field Upper Cretaceous Jubilee Field Cretaceous combination Lower Cretaceous structural- stratigraphic Deepwater Tano West Cape Three Points traps Development Di
Slide 14: Ghana Program
Ghana KOSMOS ENERGY Program 4Q’08 2009 2010 Deepwater Tano Rig capacity Blackford Dolphin West Cape Three Points Exploration and Appraisal procured Kosmos by Eirik and partners Raude Jubilee Field Development to undertake an aggressive exploration, Aban Deepwater Tano Abraham appraisal and West Cap
Slide 15: Forward Plan
Forward KOSMOS ENERGY Plan Acreage Portfolio Process (km2) Identification Capture Evaluation Drill-Out Relinquishment Identification Capture 150000 125000 New Today Portfolio 100000 75000 Existing Asset wildcat wells 50000 Delineate and 25000 Ghana Asset develop Ghana 0 2003 2004 2005 2006 2007 200
Slide 16: Finance
Finance KOSMOS ENERGY Achieved success with start-up seed Net money Spend 2012 cash flow Financing initiatives underway to fund 2011 cash flow company through Lower cost bank or first oil public funding Capital source options include: 2008 $500 Million private equity reserves-based 2004 $300 Mil
Slide 17: Value
Value KOSMOS ENERGY Recent West Africa M & A Transactions Implied 3P Reserve Value 16 14 12 10 8 $/3P BBL 6 4 2 Source: Herold’s & Wood Mckenzie 0 w 6 PC 7 06 7 dm 0 6 06 06 Kosmos has created -0 0 -0 ll o 1- 9- - 1- l & 11- 10 12 -H an 7 Tu m an ic n l C- o nt i re ce O Pr tla O N ur O substantial
Slide 18: Kosmos Energy
KOSMOS enercy KOSMOS ENERGY