The following is a brief discussion of our discoveries to date on our license areas offshore Ghana.
See ‘‘Item 1A. Risk Factors—We face substantial uncertainties in estimating the characteristics of our
unappraised discoveries and our prospects.’’
Jubilee Discovery
The Jubilee Field was discovered by Kosmos in 2007 within the WCTP Block. An appraisal
well was subsequently drilled in the offsetting DT Block, confirming a large accumulation of oil
underlying areas within both blocks. The Jubilee Field is located approximately 37 miles
(60 kilometers) offshore Ghana in water depths of 3,250 to 5,800 feet (991 to 1,707 meters).
Pursuant to the terms of the UUOA, the discovery area was unitized for purposes of joint
development by the WCTP and DT Block participating interest holders. The UUOA specifies a
split operatorship role. Kosmos was the Technical Operator for Development and Tullow was
designated as the Unit Operator. The initial tract participations were 50% for each block. Pursuant
to the terms of the Jubilee Field UUOA, the percentage is subject to a process of redetermination.
The initial redetermination process was completed on October 14, 2011. Any party to the Jubilee
UUOA with more than a 10% Jubilee Unit Interest may call for a second redetermination after
December 1, 2013. As a result of the initial redetermination process, the tract participation was
determined to be 54.36660% for the WCTP Block and 45.63340% for the DT Block. Our Unit
Interest was increased from 23.50868% (our percentage after Tullow’s acquisition of EO Group
Limited (‘‘EO Group’’)—see ‘‘Item 8. Financial Statements and Supplementary Data—Note 4—
Joint Interest Billings’’) to 24.07710%. See ‘‘Item 1A. Risk Factors—The unit partners’ respective
interests in the Jubilee Unit are subject to redetermination and our interests in such unit may
decrease as a result.’’
The Jubilee Field is a combination structural-stratigraphic trap with reservoir intervals
consisting of a series of stacked Upper Cretaceous Turonian-aged, deepwater turbidite fan lobe
and channel deposits.
The location of the Jubilee Field led to the decision to implement an FPSO based
development plan. The FPSO is designed to provide water and natural gas injection to support
reservoir pressure and to process and store oil. The Phase 1 development focused on partial
development of certain reservoirs in the Jubilee Field. The Kosmos-led integrated project team
successfully executed an initial 17 well development plan, which included nine producing wells, six
water injection wells and two natural gas injection wells, the ‘‘Kwame Nkrumah’’ FPSO and subsea
infrastructure. This initial phase provided infrastructure capacity for additional production and
injection wells that could potentially be drilled in future phases of development. Future phases
include the further development of the two existing producing reservoirs and development of the
three remaining reservoirs to maximize ultimate recovery and asset value.
Production from the Phase 1 development commenced in November 2010, with Kosmos’ first
lifting in early 2011. As production from the field grew through 2011, certain nea "