Kosmos Energy Ltd (LON:KOS, NYSE:KOS) has unveiled well results from its BP PLC (LON:BP) partnered venture offshore Mauritania that confirm the Tortue discovery as a “world class” gas resource.
A drill stem test in the Tortue-1 well flowed at an equipment constrained rate of 60mln cubic feet per day, giving confidence in plans for wells capable of producing some 200mln cubic feet per day.
Somewhat significantly, the analysis of the Tortue gas suggests it is ‘well suited’ for liquefaction - Kosmos highlighted that Tortue has low levels of liquids and the gas has minimal impurities.
Confirmation of a new ‘world class’ discovery is no doubt the kind of statement that Kosmos had hoped to make as it listed in London earlier this summer in an attempt to boost its profile among the City’s oil and gas friendly investors – albeit, the London quoted share price began with only a muted response to the good news.
READ: Kosmos Energy to join partners Tullow and BP with London listing
Tortue field is a world-class resource
In Wednesday’s early deals, Kosmos shares were up 2p (0.38%) changing hands at 525p each in London.
Kosmos owns a 28% stake in Tortue, while BP has the other 62% interest. Together the partners are targeting a final investment decision for a development in 2018, which would tee-up ‘first gas’ by 2021.
"The positive results from the DST confirm that the Tortue field is a world-class resource and validates the assumptions that underpin our development concept," said Andrew Inglis, Kosmos chief executive.
"The combination of high well rates, large connected volume per well together with a gas well-suited for liquefaction is why we believe Tortue is one of the lowest cost pre-FID greenfield LNG projects.”