Kosmos Energy Closes US$750 Million Loan Facilities

Financing to Fully Fund Company’s Share of Jubilee Oil Field Phase-One Development Offshore Ghana

• Press Release
• Source: Kosmos Energy
• On Tuesday July 14, 2009, 1:01 am EDT

DALLAS–(BUSINESS WIRE)–Kosmos Energy announces today that it has signed definitive documentation for US$750 million project finance debt facilities. The facilities are to be secured by the shares of the company’s subsidiary Kosmos Energy Ghana and its interest in the world-class Jubilee oil field offshore Ghana. This financing will fully fund Kosmos’ share of Jubilee’s phase-one development.

The US$750 million of debt is divided among a senior facility of US$550 million, a junior facility of US$100 million and facilities of US$100 million from the International Finance Corporation (IFC), a member of the World Bank Group. The main facility has a final maturity date of December 2015. The facilities include an early-draw tranche of up to US$300 million that Kosmos can access immediately on receipt of the Ghanaian government’s consent to the security package, which is consistent with ordinary practice for this type of debt facility.

Facilities’ documentation was executed by Standard Chartered Bank, BNP Paribas SA, Société Générale, IFC, Absa Bank Limited, Africa Finance Corporation, Calyon and Cordiant Emerging Loan Fund III, L.P. Standard Chartered was integral in structuring the transaction and is the Global Coordinator for the facilities, Co-Technical and Modeling Bank and Senior Facility Agent. BNP Paribas is Security Trustee, Junior Facility Agent and has the role of Hedging Coordinator Bank, and Société Générale is the Lead Technical and Modeling Bank. Kosmos’ counsel was Slaughter and May, and lenders’ counsel was Clifford Chance. Credit Suisse provided Kosmos with certain financial advisory services in relation to this transaction.

“This debt financing provides one of the essential components in ensuring a timely achievement of first oil production for Ghana. Together with the equity invested by Warburg Pincus and The Blackstone Group, it provides Kosmos with the financial resources necessary to fully develop the first phase of the Jubilee oil field,” said W. Greg Dunlevy, Kosmos Executive Vice President and Chief Financial Officer. “We believe the fact that we put in place a debt facility of this magnitude for our world-class project in the current credit environment is a significant achievement. This is evidence of the confidence of the international financial community in Kosmos’ team of seasoned executives and employees, as well as its strong support of investment in the emerging Ghanaian oil sector.”

Kosmos, operator of the West Cape Three Points Block, drilled the Mahogany-1 exploration well that discovered the Jubilee Field, the world’s biggest oil find in 2007 and one of the largest oil discoveries offshore West Africa during the last decade. Kosmos has drilled seven consecutive successful exploration and appraisal wells for a 100 percent success rate for all the wells the company has drilled to date offshore Ghana.

Kosmos and its partners are executing a phased development plan for the Jubilee Field, which is located on the West Cape Three Points Block and adjacent Deepwater Tano Block. The company believes that phase-one development will produce in excess of the planned 300 million barrels of recoverable oil. The designed production capacity of phase one is 120,000 barrels of crude per day.

Jubilee Unit – Development
Kosmos Energy is the technical operator for development of the Jubilee Unit and holds a 23.491% interest in the unit. An affiliate of Tullow Oil plc (LSE: TWL.L – News) is the unit operator and has a 34.705% interest in the unit. Other unit interest holders include an affiliate of Anadarko Petroleum Corporation (NYSE: APC – News) with a 23.491% interest; Sabre Oil and Gas with a 2.813% interest; EO Group with a 1.750% interest; and GNPC with a 13.750%, after exercising its applicable back-in rights for field development.

West Cape Three Points Block
Kosmos Energy is the operator of the West Cape Three Points Block in which the company holds a 30.875% interest. An affiliate of Anadarko Petroleum Corporation (NYSE: APC – News) has a 30.875% interest; an affiliate of Tullow Oil plc (LSE: TWL.L – News) has a 22.896% interest; the EO Group has a 3.5% interest; and Sabre Oil and Gas has a 1.854% interest in the block. GNPC has a 10% carried interest.

Deepwater Tano Block
Kosmos holds an 18% interest in the Deepwater Tano Block. An affiliate of Tullow Oil plc (LSE: TWL.L – News) operates the block with a 49.95% interest. An affiliate of Anadarko Petroleum Corporation (NYSE: APC – News) has an 18% interest; Sabre Oil & Gas has a 4.05% interest; and GNPC has a 10% carried interest.

About Kosmos Energy:
Kosmos Energy is a privately held international oil exploration and production company with a focus in West Africa. Kosmos is led by a seasoned management and technical team with extensive international and West Africa experience, and a proven record of finding and developing significant oil reserves. With the financial backing of international private equity investors Warburg Pincus and The Blackstone Group, the company possesses significant financial and operational capability to generate and participate in multiple high-impact upstream projects. For additional information, visit www.kosmosenergy.com.