Kosmos Energy 2013 Annual Report 2013 (with 10K) | Page 25

Agadir Basin We are the operator of the Foum Assaka Offshore, Essaouira Offshore and Tarhazoute Offshore blocks, which are located in the Agadir Basin. A working petroleum system has been established in the onshore area of the Agadir Basin based on onshore and shallow offshore wells. Existing well data and geological and geochemical studies have demonstrated the presence of Cretaceous source rocks in the acreage. Onshore production suggests that possible Jurassic source rocks are also present in the offshore Agadir Basin. The offshore Agadir Basin sediments are interpreted to comprise thick sequences of Lower to Upper Cretaceous age formations consisting of deep water channels and lobes. The interpreted prospects’ trapping styles are varied and include pre-salt ponded slope fans, salt domes, salt cored anticlines and sub-salt structures. In January 2013, we closed on an agreement to acquire an additional 37.5% participating interest in the Essaouira Offshore block from Canamens Energy Morocco SARL, one of our block partners. Governmental approvals and processes for this acquisition were finalized in November 2013. In August 2013, final government approvals and processes were completed for the acquisition of an additional 18.75% participating interest in the Foum Assaka block in the Agadir Basin offshore Morocco from Pathfinder Hydrocarbon Ventures Limited (‘‘Pathfinder’’), a wholly owned subsidiary of Fastnet Oil and Gas plc (‘‘Fastnet’’), one of our block partners. In October 2013, we entered into three farm-out agreements with BP plc (‘‘BP’’) covering our three blocks in the Agadir Basin, offshore Morocco. Under the terms of the agreements, BP will acquire a non-operating interest in each of the Essaouira Offshore, Foum Assaka Offshore and Tarhazoute Offshore blocks. BP will fund Kosmos’ share of the cost of one exploration well in each of the three blocks, subject to a