Finance & Investing | Fundraising | Capital Markets | Private Equity Activity

Kosmos' Maintains $1.5B Borrowing Base; Edits Drillship Contract

Share Print Bookmark    |    Thursday,October 01,2015

Kosmos Energy Ltd. announced two developments that together strengthen the company’s liquidity and better position Kosmos for continued success in a lower commodity price environment.

Kosmos announced today that the borrowing base under its reserves-based lending facility remains unchanged at $1.5 billion following its lenders’ semi-annual redetermination process which concluded on September 30, 2015. Kosmos ended the third quarter with approximately $1.9 billion of liquidity and net debt of $0.5 billion as of September 30, 2015, which is flat with the second quarter of 2015.

Kosmos also announced today an amendment to its contract for the Atwood Achiever drillship. The agreement reduces the operating day rate and extends the contract end date by one year. As part of the agreement, Kosmos Energy has an option, which may be exercised at any time through October 1, 2016, to revert the contract to the original operating day rate and original end date.

Andrew G. Inglis, chairman and chief executive officer, said, “Our successful semi-annual borrowing base redetermination and amendment of the Atwood Achiever contract are both part of our continuing effort to strengthen our overall liquidity and position Kosmos for success in a ‘lower-for- longer’ commodity price environment. Our favorable financial position and reduced drilling costs further enhance our ability to invest in our exploration and appraisal program to grow shareholder value.”