‘‘Dry hole’’ . . . . . . . . . . . . . . . . . . . .
A well that has not encountered a hydrocarbon bearing
reservoir expected to produce in commercial quantities.
‘‘EBITDAX’’ . . . . . . . . . . . . . . . . . . .
Net income (loss) plus (1) exploration expense, (2) depletion,
depreciation and amortization expense, (3) equity-based
compensation expense, (4) (gain) loss on commodity
derivatives, (5) (gain) loss on sale of oil and gas properties,
(6) interest (income) expense, (7) income taxes, (8) loss on
extinguishment of debt, (9) doubtful accounts expense, and
(10) similar items.
‘‘E&P’’ . . . . . . . . . . . . . . . . . . . . . . .
Exploration and production.
‘‘FASB’’ . . . . . . . . . . . . . . . . . . . . . .
Financial Accounting Standards Board.
‘‘Farm-in’’ . . . . . . . . . . . . . . . . . . . . .
An agreement whereby an oil company acquires a portion of
the participating interest in a block from the owner of such
interest, usually in return for cash and for taking on a portion
of the drilling costs of one or more specific wells or other
performance by the assignee as a condition of the assignment.
‘‘Farm-out’’ . . . . . . . . . . . . . . . . . . . .
An agreement whereby the owner of the participating interest
agrees to assign a portion of its participating interest in a
block to another party for cash or for the assignee taking on a
portion of the drilling costs of one or more specific wells
and/or other work as a condition of the assignment.
‘‘Field life cover ratio’’ . . . . . . . . . . . .
The ‘‘field life cover ratio’’ is broadly defined, for each
applicable forecast period, as the ratio of (x) net present value
of net cash flow through the depletion of the Jubilee Field
plus the net present value of certain capital expenditures
incurred in relation to the Jubilee Field and certain other
fields in Ghana, to (y) the aggregate loan amounts outstanding
under the Facility.
‘‘FPSO’’ . . . . . . . . . . . . . . . . . . . . . .
Floating production, storage and offloading vessel.
‘‘Ghana Obligors’’ . . . . . . . . . . . . . . .
Kosmos Energy Operating, Kosmos Energy International,
Kosmos Energy Finance International, Kosmos Energy
Development, Kosmos Energy Ghana HC and an ‘‘Obligor’’
from time to time, as defined under the Facility Agreement, as
amended and restated.
‘‘Interest cover ratio’’ . . . . . . . . . . . . .
The ‘‘interest cover ratio’’ is broadly defined, for each
applicable calculation date, as the ratio of (x) the aggregate
EBITDAX (see above) of the Company for the previous
twelve months, to (y) interest expense less interest income for
the Company for the previous twelve months.
‘‘Loan life cover ratio’’ . . . . . . . . . . . .
The ‘‘loan life cover ratio’’ is broadly defined, for each
applicable forecast period, as the ratio of (x) net present value
of net cash flow through the final maturity date of the Facility
plus the net present value of capital expenditures incurred in
relation to the Jubilee Field and certain other fields in Ghana,
to (y) the aggregate loan amounts outstanding under the
Facility.
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