Kosmos has a very aggressive expansion business model whereby they seem to rely on acquiring World Class Hydrocarbon Leases and selling Farm-in interest to very large and experienced exploration partners.
Kosmos's share price continues to tank as thier operational losses from on going operations continues to widen. Kosmos has sold $600.00 million in a new bond issue to payoff the maturing bonds and finance thier current and expanding operations. Maybe losing EEZ block 4 seems to have been the straw that broke the camel's back.
In my opinion, Kosmos need to secure EEZ block 4 in order to raise capital by selling a fram-in interest to most likely BP.
Kosmos current share price is quickly approaching the 50 day moving average and when it closes below that level, it could test the 52 week low of $3.53
Kosmos has about 298 million shares outstanding and Hedge funds have shorted 31 million shares of this stock.
Kosmos has a 28% stake in the 15 trillion cubic foot gaint gas field and looks to sell off part of thier remaining 28%.
Kosmos 28% is equivalent to about 700 million barrels of oil. This Gas Field is scheduled to come online in 2022 with a 2.5 million tons of annual gas product with future development topping out at 10 million tons a year.
I do not believe that TOTAL will exchange EEZ block 4 with Kosmos for entry into the Gaint Gas Field they once wanted into and I do not believe Kosmos wants the exchange any part of thier 28% stake as they need the Cash generated by selling off addition rights in that block.
However, Kosmos could use the farm-in revenue to buy into EEZ block 4 from TOTAL or maybe buy the balance of ERHE'S Deepwater Assets if Total Has not done so already.
In any event, it looks like Kosmos will be having some financial trouble going forward short term as the the market may also believe the same via the shorting of over 10% of Kosmos outstanding stock.
Please conduct your own research in case I am Mistaken.
Going forward, issues surrounding ERHE and her Deepwater Hydrocarbon Assets could get very interesting.
Sneak-attack
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