Kosmos Energy announced that total 1P reserves at year end 2019 were approximately 169 million barrels of oil equivalent (MMBoe) and 2P reserves were approximately 552 MMBoe.
In addition, following the recent signing of the Sale and Purchase Agreement (SPA) for the Phase 1 LNG offtake of the Greater Tortue Ahmeyim project, Kosmos intends to book additional net 1P reserves of approximately 100 MMBoe. Adjusting for these additional volumes increases total 1P reserves to approximately 268 MMBoe.
"The quality of our diverse portfolio was demonstrated again in 2019 as Kosmos organically replaced approximately 106 percent of production on a 1P basis, marking the seventh consecutive year of greater than 100 percent of production replacement," said Andrew G. Inglis, Chairman and Chief Executive Officer of Kosmos Energy. "In addition, we reached another milestone in the Greater Tortue Ahmeyim development with the signing of the Phase 1 SPA with BP Gas Marketing, enabling Kosmos to book our 1P reserves for the project. With a 1P reserve base of 268 MMBoe, split approximately 60% oil, 40% gas, we have a 1P reserve to production ratio of approximately 11 years, supporting growth with an increasing contribution of gas."
The increase in 1P reserves (excluding the impact of the Greater Tortue Ahmeyim Phase 1 LNG SPA) is primarily driven by performance in Ghana, where additional drilling has increased oil in place estimates. Jubilee recent production performance has been impacted by facilities issues and gas handling constraints, and the reservoir performance remains strong.
The increase in 2P reserves was primarily driven by performance at Jubilee and an increase at Greater Tortue Ahmeyim following the GTA-1 appraisal well drilled in 2019. 2P reserves in Equatorial Guinea and the Gulf of Mexico were held relatively flat, with revisions replacing most of 2019 production.
The company's reported reserves are prepared by Ryder Scott Company, L.P., an independent third-party reserve engineering firm. Proved reserves have been calculated using SEC guidelines at a weighted average price of $63.15/bbl Brent. Proved plus probable reserves have been calculated using PRMS guidelines using a nominal Brent oil price of $60/bbl in 2020 increasing thereafter.
1) Tortue Phase 1 SPA was signed on February 11, 2020 and proved reserves from Tortue have been included in a certified reserve report by Ryder Scott Company L.P.. Probable reserves for Phase 1 of Tortue were booked in 2018 as a result of the approval of the Phase 1 plan of development.
2) Reserve replacement ratio (RRR) is the amount of oil and gas added to the company's reserves divided by the amount extracted for production in 2019.
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