Kosmos Energy Initiates Oil Production at Winterfell Project in Gulf of Mexico

Kosmos Energy Ltd. has commenced oil production at its Winterfell development in the Green Canyon area of the US Gulf of Mexico, marking a significant milestone in its growth strategy. Kosmos, which holds a 25% working interest in Winterfell, anticipates the development to contribute high-margin, low-carbon barrels with a swift payback. CEO Andrew Inglis highlights the project's potential for future upside. The announcement comes as Kosmos' stock price has experienced a 12% decline over the past year.

Kosmos Energy Ltd. (KOS), an independent oil and gas exploration and production company, announced the successful start of oil production at its Winterfell development in the US Gulf of Mexico [1]. This milestone marks a significant step forward in the company's growth strategy, with the initial two production wells now online and ramping up production.

Located in the Green Canyon area, Winterfell is a phased development with three initial wells expected to deliver approximately 20,000 barrels of oil equivalent per day (boepd) [1]. A third well is underway and is anticipated to be online by the end of the third quarter of 2024. The initial phase of the development is projected to yield around 100 million barrels of oil equivalent [1].

The Winterfell development, which covers blocks 899, 900, 943, 944, 987, and 988, was discovered in 2021 in water depth of approximately 5,400 feet (~1,600 meters) [1]. The oil field has been developed via a 13-mile subsea tieback to the host platform [1].

Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos, expressed his excitement about this latest achievement: "The startup of Winterfell is another significant milestone for Kosmos as we continue to deliver the projects to achieve our growth targets by year-end 2024. With high margin barrels, low carbon intensity, and a quick expected payback, Winterfell has the right characteristics for Kosmos’ portfolio. Kosmos is eager to continue developing the Greater Winterfell area, which we believe has significant future upside potential" [1].

The Winterfell unit is operated by Beacon Offshore Energy, with partnerships from Westlawn Americas Offshore, Red Willow, Alta Mar Energy, and CSL Exploration [1]. The initial oil production from Winterfell comes as Kosmos' stock price has experienced a 12% decline over the past year [2].

References:
[1] Kosmos Energy Announces First Oil Production at Winterfell in the U.S. Gulf of Mexico. Business Wire. 7 July 2024. https://www.morningstar.com/news/business-wire/20240702464886/kosmos-energy-announces-first-oil-production-at-winterfell-in-the-us-gulf-of-mexico
[2] Kosmos Energy, Inc. (KOS). MarketWatch. https://www.marketwatch.com/investing/stock/kos/profile