Well for those that think Kosmos purchase of Deep Gulf Energy is an amazing undertaking, well it may be short lived.
Private Equity firm sold DGE and its P50 reserves of 80 million barrels of oil equivalent for 11.75 a barrel plus $300 million in stock or $15.00 A barrel combined.
DGE'S P50 reserves are 80 million less 85% Oil.
Kosmos claims this acquisition will add 45,000 barrels of oil equivalency to its daily production and the proceeds will be used for dividends.
Kosmos break even cost is $58.00 a barrel and that will leave $12.00 profit oil at $70.00 a barrel. Kosmos is expecting hydrocarbon prices to head higher in the years ahead.
At 45,000 barrels a day, the well may last 5 years at that rate of Production.
The Private Equity firm sold in order to move onshore where shale oil and gad production is more cost effective and profitable for them.
Kosmos is spread very thin with all those Hydrocarbon Leased and this acquisition will help them in the short run, but a few dry holes and Who Knows.
The above information is intended to give some insight into what ERHE'S Hydrocarbon Assets may possibly be worth in negotiating the sale of her Deepwater Hydrocarbons Assets to a possible Suitor.
Please conduct your own research in case I am Mistaken.
Have a Nice Day.
Sneak-attack
