lobes and channel deposits. The Tweneboa-3ST well discovered the Ntomme discovery and the
Ntomme-2A appraisal well confirmed a downdip extension of the field. The wells encountered
high-quality stacked reservoir sandstones. The Ntomme-2A confirmed the majority of the resources
in the discovery to be oil. Fluid samples recovered from the wells indicate an oil gravity of
35 degrees API.
In November 2012, we submitted a declaration of commerciality and PoD over the TEN
discoveries (includes Tweneboa, Enyenra and Ntomme). In May 2013, the government of Ghana
approved the PoD over the TEN discoveries. Development of TEN will include the drilling and
completion of up to 24 development wells, half of the wells designed as producers and the
remainder as water or gas injectors to support ultimate field recoveries. The TEN development is
expected to deliver first oil in 2016. Future development of gas resources at TEN is anticipated
following the commencement of oil startup.
The Wawa-1 exploration well intersected oil and gas-condensate in a Turonian-aged turbidite
channel system. Pressure data shows that it is a separate accumulation from the TEN fields.
Following additional appraisal and evaluation, a decision regarding the commerciality of the Wawa
discovery will be made by the DT Block partners. Should the discovery be declared commercial, a
PoD would be prepared for submission to Ghana’s Ministry of Energy within six months of the
declaration of commerciality.
Kosmos holds a non-operated 18.0% participating interest in the DT Block. The DT PA,
which governs our activities relating to the DT Block and for commercial development areas
therein, has a duration of 30 years from its effective date of July 19, 2006. The seven-year
exploration phase of the DT PA expired in January 2013. Our existing discoveries within the DT
Block (Tweneboa, Enyenra, Ntomme and Wawa) are not subject to relinquishment upon expiration
of the exploration phase of the DT PA, as the DT PA remains in effect after the end of the
exploration phase for these areas while commerciality is being determined.
Ireland
We have identified the Porcupine Basin Offshore Ireland as an underexplored basin with the
potential for large oil hydrocarbon accumulations in our core Cretaceous stratigraphic play concept.
The Porcupine Basin is a Jurassic aged rift basin located on the eastern Atlantic margin offshore
Southwest Ireland. Previous explorat ion was focused on Jurassic and Tertiary aged sandstones located
in the shallow water portions of the basin. These wells encountered Jurassic, Cretaceous and Tertiary
reservoirs, Jurassic source rocks and oil and gas; however, no commercial developments have taken
place in the basin. We have identified a number of geologic features of Cretaceous age on vintage 2D
seismic data which have play potential similar to the features identified in our Atlantic Margin acreage.
In April 2013, we entered into a farm-in agreement with Antrim Energy Inc. (‘‘Antrim’’), whereby
we acquired a 75% participating interest and operatorship, covering Licensing Option 11/5 offshore the
west coast of Ireland. As part of the agreement, we reimbursed a portion of previously-incurred
exploration costs and are paying the partner’s share of 3D seismic costs.
In April 2013, we entered into a farm-in agreement with Europa Oil & Gas (Holdings) plc
(‘‘Europa’’), whereby we acquired an 85% participating interest and operatorship, covering Licensing
Option 11/7 and 11/8 offshore the west coast of Ireland. As part of the agreement, we reimbursed a
portion of previously-incurred exploration costs and are paying the partner’s share of 3D seismic costs.
Contingent upon an election by us and our partner to enter into a subsequent exploration drilling
phase on one or both of the blocks, we will also fund 100% of the costs of the first exploration well on
each block, subject to an investment cap of $90.0 million and $110.0 million, respectively, on each
block.
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