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Kosmos (KOS) Finds Success in GoM With Tiberius Oil Find

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Kosmos Energy (KOS - Free Report) has announced a significant oil discovery at the ultra-deepwater Tiberius exploration well in the U.S. Gulf of Mexico’s Wilcox trend. The well, situated in Keathley Canyon Block 964, revealed around 250 feet (about 75 meters) of net oil pay in the primary target. KOS, with a 33.34% working interest, operates the well in partnership with Occidental and Equinor ASA, each holding a 33.33% stake.

Tiberius is positioned in roughly 7,500 feet (2,300 meters) of water and was drilled to a total vertical depth of about 25,800 feet (7,800 meters). The dual-listed (NYSE & London) company has completed wireline logging and is currently installing the casing to prepare the well for future oil production.

Kosmos Energy — an oil and gas explorer focused on offshore Ghana, Equatorial Guinea and the U.S. Gulf of Mexico — views this find as a testament to its basin infrastructure-led exploration strategy, which prioritizes short-cycle development opportunities with cost efficiency. They believe that the Gulf of Mexico, with its top-tier carbon emissions efficiency, is well-positioned to provide a lower carbon domestic oil supply to meet the increasing consumption.

Kosmos intends to perform rock and fluid analysis to assess the reservoir's production potential and will collaborate with partners on subsea development options. This discovery's proximity to Occidental's Lucius SPAR production facility, just 6 miles to the southeast, offers the possibility of a quick tie-back in case of development. This successful exploration aligns with the industry's focus on efficient, environmentally friendly energy sources to meet growing global demand.

Zacks Rank & Stock Picks

Kosmos Energy currently carries a Zacks Rank #5 (Strong Sell). Meanwhile, investors interested in the energy sector might consider the operators mentioned below. These companies currently sport a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

CVR Energy (CVI - Free Report) : It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Over the past 60 days, CVR Energy saw the Zacks Consensus Estimate for 2023 move up 23.3%.

CVR Energy is valued at around $3.2 billion. CVI has seen its shares drop 4.9% in a year.

Matador Resources (MTDR - Free Report) : It beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Over the past 60 days, Matador Resources saw the Zacks Consensus Estimate for 2023 move up 5.1%.

Matador Resources is valued at around $7.1 billion. MTDR has seen its shares lose 3.8% in a year.

HF Sinclair (DINO - Free Report) : It beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other at an average of 10.4%.

DINO is valued at around $9.8 billion. HF Sinclair has seen its shares go down 2.6% in a year.

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