Kosmos Energy Ltd KOS
Q2 2012 Earnings Call Transcript

Operator: Ryan Todd, Deutsche Bank.

Ryan Todd - Deutsche Bank: A couple of questions on Jubilee. You referenced how the asset stimulated wells have been coming on very successfully. Can you talk about generally what rates you are seeing on average in the wells coming back and from the earlier asset stimulate wells, which I think you said were about – you've got about four months of production? Are you starting to see any signs of buildup of the fines again or what you are seeing from that point of view?

Brian F. Maxted - CEO: Let me answer that, Ryan, I think Darrell is offline. In terms of the asset stimulation program, obviously, it's been extremely successful over the weekend, since our release. Production is now at about 88,000 barrels a day, so that just 1,000 barrel a day short of the peak production on the field thus far. So, obviously the program has been very successful. We've only complete – we only acidized five of the nine producers so far, and in terms of production, we have -- what we've said is we've restored the PIs to same level some time, in some cases even better than the original PI, which give you an indication that production on each of the wells is what we would anticipate from those PIs. In terms of the one continuing or known is how long or how often might we need to be doing these assets stimulations and the information so far is encouraging given the several of these wells have been – at least one of them have been on stream for about 120 days since the first simulation. Of course, we're not at steady-state production yet so any changes in production rates are not simply going to be related to the well the wellbore issues, but also what's happening in the reservoirs well, but generally speaking rates are holding very steady on a relative basis to the original initial production after coming on stream following the production enhancement program, if that helps.

W. Greg Dunlevy - EVP and CFO: Yeah. I'll jump in too, Brian. My phone went dead for a minute there, but yeah absolutely there has been no decline seen on the five that are being stimulated so far.

Ryan Todd - Deutsche Bank: You said that you'd have three of the Phase 1A wells on by year-end and the other two would -- the other two producers would come on in the first half of 2013, is that right?

Brian F. Maxted - CEO: It’s Brian again Ryan, we said we'd drill three of the Phase 1A wells, which obviously we benefited from the learnings of the Phase I drilling and completion, those wells are -- so the wells are high angle and the third is actually a horizontal. So, the KH on those wells is some of the best KHs we’ve obviously seen in the field as a result of the design. We will now be bringing them on stream with more optimal we believe completion designs again, pick it out from the learnings that we’ve had on Phase 1. The current plan subject to any operational voice is to have two of those three on stream and producing by the end of the year, with the third one in the early part of 2013.

Ryan Todd - Deutsche Bank: So, from a production plateau point of view you think is first half of 2013 either expectation in terms of hitting 120.

Brian F. Maxted - CEO: Yeah, obviously – in fact we’ve given out guidance in the recent past, I don’t think we would want to change that guidance at this point and that guidance includes reaching a original plateau sometime in the early part of next year, but we’re close to 90,000 barrels a day today without additional activity yet done, so that should give you some sense of where we are at.