Kosmos Energy Ltd (NYSE:KOS) is to join its major partners BP PLC and Tullow Oil plc with a listing on the London Stock Exchange.
Andrew Inglis, Kosmos chief executive, in a statement described the proposed secondary listing as “the next step in the company’s evolution”.
“Our NYSE listing has enabled Kosmos to attract blue chip investors and given us access to significant opportunities,” Inglis said.
“We selected the LSE for our secondary listing because of its strong liquidity, reputation for transparency, and participants' knowledge of the role of frontier exploration and development in our industry".
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The company is partnered with Tullow offshore Ghana. Like Tullow, Kosmos has been largely ‘made’ from the flagship Jubilee field – where gross production amounts to some 132,000 barrels of oil per day (26,900 net).
Meanwhile, back in December it teamed up with BP in Mauritania and Senegal where its exploration drilling campaign has so far enjoyed a 100% record, unearthing unearthed significant gas discoveries (about 40 trillion cubic feet) in recent years.
Kosmos highlighted that it has some US$1.2bn of liquidity on its balance sheet, and it expects the new listing in London will bring greater investor and analyst attention compared to its primary listing in New York – where it is one of few exploration and production companies of its kind.
The stock market statement in London made no mention of any plans to capital raise alongside the secondary London listing. In the New York listing, where the stock is priced at around US$6.50, the company has a market capitalisation of around US$2.5bn.
"We believe that Kosmos represents a compelling investment proposition both in terms of its upcoming high-impact exploration program and the development of recent gas discoveries,” Inglis added.
“We have experienced tremendous growth over the years driven by increasing production and cash flow in Ghana and recent discoveries offshore Mauritania and Senegal.”