Kosmos Energy Ltd. (KOS:US) tumbled after the U.S. oil explorer said it will plug and abandon the Teak-4A appraisal well offshore Ghana.
The well, located northwest of the company’s Teak-1 discovery, “encountered thin, non-commercial reservoirs,” Kosmos said in a statement today.
The company, based in Dallas, said it will move the Atwood Hunter rig to its Akasa oil discovery once it completes operations at the Teak wells.
Kosmos dropped 8.5 percent to $11.07 at 4:56 p.m., after the statement was issued following the close of regular U.S. trading. In November, Kosmos said the Teak prospect extended farther than originally thought. The well results will be integrated into plans for the Teak field to determine future appraisal and development, Kosmos said today.
Kosmos, with a 30.9 percent interest, operates the West Cape Three Points Block where Teak-4A is located. Other partners include Anadarko Petroleum Corp. (APC:US), Tullow Oil Plc (TLW), Sabre Oil & Gas Holdings Ltd. and Ghana National Petroleum Corp.
Gross production at the Jubilee field off Ghana averaged 67,000 barrels of oil a day in the first quarter, Anadarko said April 30.
Also today, Kosmos said it terminated its proposed acquisition of Sabre’s participating interest in the Deepwater Tano Block off Ghana. The parties reached a mutual agreement, Kosmos said, and the company will keep an 18 percent stake while Sabre’s is about 4 percent.
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