BP partner Kosmos Energy plots London Stock Exchange listing to lure European investors

Courtney Goldsmith
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Pennzenergy Company Oil Exploration Drilling Rig In The Gulf Of Mexico During Sunset (Ph
BP and Kosmos announced a huge oil find offshore Senegal earlier this year (Source: Getty)

Kosmos Energy today announced it will list on the London Stock Exchange (LSE) by the end of September as it works to attract more European investors.

The US-based energy firm, which will maintain its primary listing on the New York Stock Exchange (NYSE), is exploring for gas offshore Senegal and Mauritania with BP.

​Kosmos said now was the right time to obtain a secondary listing in London to increase the number of analysts providing independent investment research on the company.​

"As a result, the listing is expected to broaden Kosmos’ international investor base," the firm said in a statement.

Shares in the company lifted 2.55 per cent to $6.64 in afternoon trading in New York.

Kosmos began its joint venture partnership with BP at the end of 2016, and in May the two companies announced a major gas discovery offshore Senegal.

Andrew Inglis, chairman and chief executive of Kosmos, said:

This secondary listing is the next step in the company’s evolution. Our NYSE listing has enabled Kosmos to attract blue-chip investors and given us access to significant opportunities.

We selected the LSE for our secondary listing because of its strong liquidity, reputation for transparency, and participants’ knowledge of the role of frontier exploration and development in our industry.

Inglis added that the company makes a compelling investment proposition in terms of both an upcoming high-impact exploration programme and the development of recent gas discoveries.

In May it said estimates for its Yakaar-1 exploration well offshore Senegal showed a gross gas resource of approximately 15 trillion cubic feet (tcf), in line with pre-drill expectations.

The 33,000 square km of acreage covered by the joint venture also includes the Tortue field, which is estimated by Kosmos to contain more than 15 tcf of discovered gas resources.

BP has called the West Africa region a "world-class hydrocarbon basin".

Brendan Warn, analyst at BMO Capital Markets said Kosmos and BP are drilling some of the largest prospects the industry will test in 2017/18. Warn reiterated an "outperform" rating for Kosmos' stock with a $9 target price.

"The explorer Kosmos has found >40 tcf of high quality natural gas and is preparing to retest the theory that deepwater basin floor fans are potential charged from a liquids rich source rock, with the drilling of Hippocampe and Lamantin in Mauritania."

Kosmos said the listing process is expected to be completed later in the third quarter of 2017.

Read more: BP to pour almost $1bn into "world-class" West African gas hub

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