Kosmos Energy 2013 Annual Report 2013 (with 10K) | Page 33

the terms of the petroleum contract, the Company is the operator of the Tarhazoute Offshore block. ONHYM holds a 25% carried interest in the block through the exploration period. We are currently in the first exploration period, which is for two and one-half years from its effective date (December 9, 2013) ending in June 2016. The exploration phase may be extended for a total duration of eight years at our election and subject to our fulfilling specific work obligations, which include acquisition of 3D seismic data during the first period and drilling an exploration well in each of the subsequent periods. In the event of commercial success, the Company has the right to develop and produce oil and/or gas for a period of 25 years from the grant of an exploitation concession from the Government of Morocco, which may be extended for an additional period of 10 years under certain circumstances. The petroleum contract is subject to customary government approvals. Drilling activity The results of oil and natural gas wells drilled and completed for each of the last three years were as follows: Exploratory and Appraisal Wells(1) Productive(2) Dry(3) Total Development Wells(1) Productive(2) Dry(3) Total Gross Net Gross Net Gross Net Gross Net Gross Net Gross Net — — — — — 1 — 0.18 — 1 — 0.18 2 — 0.48 — — — — — 2 — 0.48 — Year Ended December 31, 2013 Ghana Jubilee Unit . . . . . . . . . . . . . Deepwater Tano . . . . . . . . . . . Cameroon N’dian River . . . . . . . . . . . . . — — 1 1.00 1 1.00 — — — — — Total . . . . . . . . . . . . . . . . . . . — — 2 1.18 2 1.18 2 0.48 — — 2 Year Ended December 31, 2012 Ghana Jubilee Unit . . . . . . . . . . . . . West Cape Three Points . . . . . . Deepwater Tano . . . . . . . . . . . — — — — — — — 1 1 — 0.31 0.18 — 1 1 — 0.31 0.18 5 — — 1.20 — — — — — — — — 5 — — Total . . . . . . . . . . . . . . . . . . . — — 2 0.49 2 0.49 5 1.20 — — Year Ended December 31, 2011 Ghana Jubilee Unit . . . . . . . . . . . . . West Cape Three Points . . . . . . Cameroon Kombe-N’sepe . . . . . . . . . . . . — — — — — 4 — 1.24 — 4 — 1.24 1 — 0.24 — — — — — 1 0.35 1 0.35 — — Total . . . . . . . . . . . . . . . . . . . — — 5 1.59 5 1.59 1 0.24 Total Total Gross Net 2 1 0.48 0.18 — 1 1.00 0.48 4 1.66 1.20 — — 5 1 1 1.20 0.31 0.18 5 1.20 7 1.69 — — 1 — 0.24 — 1 4 0.24 1.24 — — — — 1 0.35 — — 1 0.24 6 1.83 (1) As of December 31, 2013, 10 exploratory and appraisal wells have been excluded from the table until a determination is made if the wells have found proved reserves. Thirteen development wells awaiting completion have also been excluded. These wells are shown as ‘‘Wells Suspended or Waiting on Completion’’ in the table below. (2) A productive well is an exploratory or development well found to be capable of producing either oil or natural gas in sufficient quantities to justify completion as an oil or natural gas producing well. Productive wells are included in the table in the year they were determined to be productive, as opposed to the year the well was drilled. (3) A dry well is an exploratory or development well that is not a productive well. Dry wells are included in the table in the year they were determined not to be a productive well, as opposed to the year the well was drilled. 26