Kosmos Energy Expands Strategic Position in Gulf of Guinea

Kosmos/Trident joint venture acquires portfolio offshore Equatorial
Guinea with new exploration acreage and oil production

DALLAS–(BUSINESS WIRE)–Kosmos
Energy (NYSE: KOS) (LSE: KOS) announced today that in partnership
with Trident Energy (Trident), it has agreed to acquire an interest in
three exploration licenses, as well as Hess Corporation’s interest in
the adjacent Ceiba Field and Okume Complex assets offshore Equatorial
Guinea on a 50-50 basis. Under the terms of the agreements, Kosmos will
be primarily responsible for exploration and subsurface evaluation while
Trident, a newly formed international oil and gas company supported by
Warburg Pincus, will be primarily responsible for production operations
and optimization. The transactions capture a material position in proven
but under-explored oil basin originally discovered and operated by
members of the Kosmos management team.

Highlights of the Transactions:

• Increases Kosmos’ total gross acreage in the Gulf of Guinea by
  approximately 6,000 square kilometers, adding to its existing 25,000
  square kilometer position offshore Sao Tome in the same petroleum
  system
• Provides exploration opportunities for large frontier prospects, as
  well as near-field, short-cycle tie-backs through existing
  infrastructure with good fiscal terms
• Adds approximately 13,500 barrels of oil per day (bopd) of net1
  production (gross: ~45,000 bopd), with identified opportunities for
  resource and value upside
• Includes approximately 45 million barrels (mmbbl) of net1
  identified 2P/2C remaining recoverable resource (gross: ~155 million
  barrels) based on Kosmos/Trident company estimates
• Expected to generate approximately $120 million of operating cash flow
  per year at $50 Brent over the next several years, net to Kosmos

“This transaction expands our significant position in a proven, but
under-explored oil basin,” said Andrew G. Inglis, chairman and chief
executive officer. “The Ceiba and Okume fields, which our team
originally discovered and managed, provide low-cost, high-margin
production with several identified opportunities for resource and value
upside. These discoveries de-risked the key play elements in the basin,
but limited exploration in subsequent years means we have the chance to
fully unlock the exploration potential of the Rio Muni basin. Our
differential knowledge of the basin and access to under-utilized
infrastructure, creates a unique opportunity for the company.
Furthermore, our partnership allows us to add value through our core
expertise while leveraging the proven management team at Trident to
deliver the upside from the Ceiba and Okume fields. In addition, the
attractive purchase price means the acquisition is immediately accretive
from both a value and leverage perspective, and enhances our already
strong financial position.”

Financial Terms

The gross acquisition price of $650 million is effective as of January
1, 2017. Kosmos is expected to pay net cash consideration of
approximately $240 million at close, subject to post-closing
adjustments. The company plans to fund the acquisition using cash on
hand and availability from its reserves based lending (RBL) facility. As
a result of the transaction, Kosmos expects the RBL to increase,
resulting in Kosmos maintaining its current liquidity of approximately
$1.2 billion. The transaction is expected to close by year end, subject
to customary closing conditions.

Effective Participating Interests 2

1. Based on Kosmos net entitlement at $50 per barrel. Net of royalty
2.
Net effective participating interests upon transaction closing
3.
GE Petrol manages the interest in the Ceiba and Okume fields on behalf
of the Republic of Equatorial Guinea

Conference Call & Webcast Information

Kosmos will host a conference call and webcast to discuss its entry into
Equatorial Guinea on Tuesday, October 24, 2017 at 9:00 a.m. CDT.

Dial-in telephone numbers:
U.S. / Canada: +1.877.407.3982
International:
+1.201.493.6780
Webcast: investors.kosmosenergy.com

A slide presentation will be made available on the Investors page of
Kosmos’ website at www.kosmosenergy.com prior
to the call. A replay of the webcast will be available on the website
for approximately 90 days following the event.

About Kosmos Energy

Kosmos is a leading independent oil and gas exploration and production
company focused on frontier and emerging areas along the Atlantic
Margin. Our assets include existing production and development projects
offshore Ghana, large discoveries offshore Mauritania and Senegal, as
well as exploration licenses with significant hydrocarbon potential
offshore Suriname, Sao Tome and Principe, Morocco and Western Sahara. As
an ethical and transparent company, Kosmos is committed to doing things
the right way. The Company’s Business
Principles articulate our commitment to transparency, ethics, human
rights, safety and the environment. Read more about this commitment in
the Kosmos 2016
Corporate Responsibility Report. Kosmos is listed on the New York
Stock Exchange and the London Stock Exchange under the ticker symbol
KOS. For additional information, visit www.kosmosenergy.com.

About Trident Energy

Trident Energy is a newly formed independent oil and gas exploration and
production company focused on the acquisition, operational improvement
and optimization of international mid-life assets. The company is
currently building a diversified portfolio of onshore and offshore
producing operated assets through acquisitions. Trident Energy has a
global mandate, with a primary focus on Africa and South America. The
company is led by an experienced management team with over 100 years of
international oil and gas operating experience.

Trident Energy is supported by an equity commitment of up to US$ 600
million led by Warburg Pincus, a leading private equity firm focused on
growth investing with significant energy experience. For further
information, visit www.trident-energy.com.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that Kosmos expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Kosmos’ estimates and forward-looking statements are mainly
based on its current expectations and estimates of future events and
trends, which affect or may affect its businesses and operations.
Although Kosmos believes that these estimates and forward-looking
statements are based upon reasonable assumptions, they are subject to
several risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or
other similar words are intended to identify forward-looking statements.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Kosmos, which may
cause actual results to differ materially from those implied or
expressed by the forward-looking statements. Further information on such
assumptions, risks and uncertainties is available in Kosmos’ Securities
and Exchange Commission (“SEC”) filings. Kosmos undertakes no
obligation and does not intend to update or correct these
forward-looking statements to reflect events or circumstances occurring
after the date of this press release, except as required by applicable
law. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their
entirety by this cautionary statement.

Contacts

Kosmos Energy
Investor Relations
Neal Shah,
+1-214-445-9628
[email protected]
or
Rhys
Williams, +1-214-445-9693
[email protected]
or
Media
Relations
Thomas Golembeski, +1-214-445-9674
[email protected]