completed and the Company is presently unable to predict with certainty when completion will
occur, as several previous completion dates have passed. In the absence of a pipeline to remove
large quantities of natural gas from the Jubilee Field in order to maximize production levels it is
anticipated that we will need to flare such natural gas. Currently, we have not been issued an
amended permit from the Ghana Environmental Protection Agency (‘‘Ghana EPA’’) to flare
natural gas produced from the Jubilee Field in substantial quantities. If we are unable to resolve
issues related to the continuous removal of associated natural gas in large quantities from the
Jubilee Field, our oil production will be negatively impacted. See ‘‘Risk Factors—Our inability to
access appropriate equipment and infrastructure in a timely manner may hinder our access to oil
and natural gas markets or delay our oil and natural gas production.’’
During 2013, we experienced mechanical issues in the Jubilee Field, including failures of our
water injection facilities on the FPSO and water and gas injection wells. This equipment downtime
negatively impacted oil production during the year.
Oil production from the Jubilee Field averaged approximately 97,500 barrels of oil per day
during 2013. We submitted the JFFDP to Ghana’s Minister of Energy in December 2012 and
subsequently withdrew based on discussions with the government of Ghana. A PoD providing for
development of the next phase within the Jubilee Field is expected to be submitted during 2014,
although we can give no assurance that such approvals will be forthcoming in a timely manner or
at all.
WCTP Block Discoveries
Mahogany is located within the WCTP Block, southeast of the Jubilee Field. The field is
approximately 37 miles (60 kilometers) offshore Ghana in water depths of 4,101 to 5,905 feet
(1,250 to 1,800 meters). We believe the field is a combination stratigraphic-structural trap with
reservoir intervals contained in a series of stacked Upper Cretaceous Turonian-aged, deepwater fan
lobe and channel deposits. The Mahogany-3, Mahogany-4, Mahogany-5 and Mahogany Deep-2
wells have intersected multiple oil bearing reservoirs in a Turonian turbidite sequence. Fluid
samples recovered from the wells indicate an oil gravity of between 31 and 37 degrees API.
Effective January 14, 2014, the Ministry of Energy and GNPC entered into a Memorandum of
Understanding with Kosmos Energy, on behalf of the WCTP PA Block partners, wherein all
parties have settled all matters pertaining to the Notices of Dispute for the Mahogany East PoD
and the Cedrela Notice of Force Majeure, and the Ministry of Energy has approved the Appraisal
Programs for the Mahogany, Teak, and Akasa discoveries. As a result of the settlement, a portion
of the WCTP PA area which contained the Cedrela prospect has been relinquished.
The Teak discovery is located in the western portion of the WCTP Block, northeast of the
Jubilee Field. The field is approximately 31 miles (50 kilometers) offshore Ghana in water depths
of approximately 650 to 3,600 feet (200 to 1,100 meters). We believe the field is a structuralstratigraphic trap with an element of four-way closure. The Teak-1, Teak-2 and Teak-3 wells have
intersected multiple oil and natural gas condensate bearing reservoirs in Campanian and Turonian
zones. Fluid samples recovered from the wells indicate an oil gravity of between 32 and 39 degrees
API and natural gas condensate gravity of between 40 and 45 degrees API. The Teak-4A appraisal
well was completed in May 2012. The well encountered non-commercial reservoirs and accordingly
was plugged and abandoned.
The Akasa discovery is located in the western portion of the WCTP Block approximately
31 miles (50 kilometers) offshore Ghana in water depths of approximately 3,200 to 5,050 feet (950
to 1,550 meters). The discovery is southeast of the Jubilee Field. We believe the target reservoirs
are channels and lobes that are stratigraphically trapped. The Akasa-1 well intersected oil bearing
reservoirs in the Turonian zones. We believe that the Akasa-2A appraisal well successfully
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