Sloppy markets typically don't lead to hot initial public offerings. Therefore, it should warm the hearts of those at Dallas- and Bermuda-based Kosmos Energy
The company ultimately offered 33 million shares at $18 per share -- the top of a proposed $16-$18 range, thereby generating $594 million in gross proceeds. The 4.95 million shares set aside to cover overallotments brought the total to $683 million. The shares closed at $18.24 on Wednesday.
Kosmos has been backed by private equity firms Warburg Pincus and Blackstone Group
Jubilee is believed to hold about 1.6 billion barrels of light crude, and should reach its production capacity of about 120,000 barrels per day within a matter of months. Kosmos is a member of a group with interests in Jubilee that is headed by London's Tullow Oil, which has a 34.7% interest and serves as operator, along with Anadarko Petroleum's
Kosmos nearly didn't make it to the IPO stage, at least with its Jubilee stake still in its little red wagon. About 18 months ago, the company agreed to sell its interest in Jubilee to ExxonMobil
Today, the allure of Kosmos results largely from Jubliee's potential position at the eastern extremity of a possibly 700-mile-long structure that may extend as far west as Sierra Leone, where a group that includes Anadarko and Spain's Repsol
At the same time, the company, which was founded in 2003 by CEO Brian Maxted, among others, has claim to a number of deepwater assets offshore from Ghana. All in all, it's zeroing in on 18 prospects off Ghana, 10 off Cameroon, and 19 sites offshore Morocco.
Newly minted, public oil and gas companies aren't a dime a dozen these days. On that basis, and given the opportunity to track its concentrated assets, I'd recommend that Fools watch the company's blips on your radar screens. Better yet, add it to MyWatchlist, our free, personalized stock tracking service.
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