Kosmos Energy said on Wednesday it had acquired the participating interest of Sabre Oil & Gas Holdings Limited in the Deepwater Tano Block, offshore Ghana.
A statement from the company said the purchase price is estimated to be approximately $365 million, with up to an additional $45 million contingent upon achieving certain performance milestones.
Following closing of the acquisition, Kosmos’ interest in the Deepwater Tano Block will increase from 18 percent to 22.05 percent and Kosmos’ interest in the Jubilee Field will increase from 24.1 percent to 25.8 percent.
Brian F. Maxted, President and Chief Executive Officer, stated, “We feel very fortunate to have an opportunity to grow our interest in what we believe are some of the most valuable assets in West Africa at a compelling price.
This transaction adds existing production at Jubilee, enhances our stake in the next oil development offshore Ghana, and increases our exposure to the significant Deepwater Tano exploration program in 2012,” he said.
“We have great belief and confidence in the quality, value, and upside of our discoveries and the further potential of the Tano basin petroleum system,” the statement added.
Closing of the transaction should occur in the second quarter of 2012, subject to a definitive transaction agreement, customary closing conditions and necessary government approvals.
The Company anticipates funding the purchase price through a combination of cash on hand and borrowings. The effective date of the acquisition is January 1, 2012.