Kosmos Energy Ltd. (“Kosmos” or the “Company”) (NYSE/LSE: KOS) announced today the successful commencement of oil production at the Winterfell development in the Green Canyon area of the U.S. Gulf of Mexico.
Winterfell, in which Kosmos holds a 25.04% working interest, is being developed in phases. The initial phase has seen the first two production wells come online and begin ramping up production. A third well is currently undergoing drilling operations and is expected to commence production by the end of the third quarter of 2024. Together, these three initial wells are projected to achieve gross production of approximately 20,000 barrels of oil equivalent per day (boepd).
Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos, remarked on the milestone, stating, “The launch of oil production at Winterfell marks another significant achievement for Kosmos as we advance our projects towards meeting our growth objectives by the end of 2024. With its high-margin barrels, low carbon intensity, and rapid anticipated payback, Winterfell is a valuable addition to Kosmos’ portfolio. We are enthusiastic about further developing the Greater Winterfell area, which we believe holds substantial future upside potential.”
Winterfell is located in the Miocene-aged field, discovered in 2021 at a water depth of approximately 5,400 feet (~1,600 meters). The field has been developed via a 13-mile subsea tieback to the host platform. Despite initial delays in subsequent work following the successful drilling and completion of the first two wells and subsea hookup in April 2024, first oil production has commenced slightly later than originally planned. The first phase of development, encompassing a total of five wells, is anticipated to yield approximately 100 million barrels of oil equivalent, with additional upside potential expected from subsequent phases. The Winterfell unit spans across Green Canyon blocks 899, 900, 943, 944, 987, and 988, with further opportunities in adjacent blocks where Kosmos also maintains interests.
Partners in the Winterfell unit include Beacon Offshore Energy (operator), Westlawn Americas Offshore, Red Willow, Alta Mar Energy, and CSL Exploration.
