Kosmos Energy spends $37m on production, exploration at Jubilee in 2012 second quarter

Kosmos Energy says it has made a $37 million expenditure on production and exploration activities at the Jubilee oil fields during the second quarter of 2012, according to the oil company’s second quarter 2012 results released August 6, 2012.

Production expense for the second quarter of 2012 was $20 million and according to Kosmos, this included $10 million related to acid stimulation costs incurred on Jubilee Phase 1 wells.

The results further stated that excluding these costs, the company’s production expense was approximately $9.37 per barrel sold, down from $14.36 per barrel for the same period last year.

The company sold one Jubilee lifting during the quarter, totaling 997,000 barrels of oil, at a realized price of $112.60 per barrel making oil revenues of $112 million, the results indicated.

On exploration expense during the quarter, the company spent $17 million and it included certain “seismic, geologic and geophysical studies” as well as a portion of costs associated with the Teak-4A well.

General and administrative (G&A) costs were $35 million, with over 50% related to non-cash, equity-based compensation expense, the company reported. “Total G&A was up from the same period last year, primarily as a result of the company’s growth and transition from a private to a public company in mid-2011,” it adds.

Kosmos said depletion and depreciation expense was $33 million in the second quarter of 2012, up from $23 million in the second quarter of 2011 and this was increased primarily as a result of the “capitalization of the Jubilee FPSO and the ongoing capital spending for development of the Jubilee field.”

The company observed that the recording of year-end 2011 reserves impacted the 2012 depletion rate.

By Ekow Quandzie