Kosmos Energy says its oil field at West Cape Three Points is the largest discovery in deep water West Africa and potentially the largest single field discovery in the region.
It said an appraisal of one of the wells drilled at the West Cape Three Points Block, christened Mahogany-2, had encountered a substantial light crude oil column, based on what it described as "the results of drilling, wireline logs and reservoir fluid samples".
"The success of the Mahogany-2 appraisal well is certainly great news for the people of Ghana. The well confirms Jubilee as a giant field, the largest discovery in deep water West Mrica since the inception of Kosmos in 2003. It is one of the biggest finds ever made here and potentially the largest single field discovery in this region," the Chairman and Chief Executive Officer of Kosmos, Mr James C. Musselman, told a news agency in Dallas, USA..
The announcement comes at a time when global prices of oil are at their highest ever of $120 a barrel.
Kosmos said the results showed that the Mahogany-2 well •was in communication with the Mahogany-1 discovery well on the West Cape Three Points Block announced in June 2007 and the company's Hyedua-1 confirmation well on the Deepwater Tano Block announced in August 2007.
The successful wells validated the fact that the Jubilee Field discovery was a significant oil field, the company said.
It added that the Mahogany-2 well, the field's second appraisal well, confirmed a major field extension.
During the remainder of 2008 and early 2009, Kosmos and its field partners plan additional appraisal drilling of the Jubilee Field (formerly known as the Mahogany Field).
The development sanction of the Jubilee Field project is expected this year, followed by- first oil production commencing as early as late 2009 to early 2010.
Kosmos also plans to delineate the company's nearby Odum Field discovered in early 2008.
The company said it would conduct a high-resolution 3D seismic survey over the south-eastern portion of tile West Cape Three Points Block covering the Odum discovery and the adjacent area this summer.
In addition, it expects to drill additional high•impact exploration prospects on its offshore Ghanaian acreage during the second half of 2008 and in 2009.
Kosmos Energy is the operator of the West Cape Three Points Block in which the company holds a 30.875 per cent interest.
Anadarko WCTP Company, an affiliate of Anadarko Petroleum Corporation, has a 30.875 per cent interest, Tullow Ghana Limited, an afIiliate of Tullow Oil pic, has a 22.896 per cent interest, the E.O. Group has a 3.5 per cent interest, while Sabre Oil and Gas Limited has a 1.854 per cent interest in the block.
The Ghana National Petroleum Corpu-ration (GNPC), which has a 10 per cent participating interest in the project, will be carried through the exploration and development phases.
The West Cape Three Points Block comprises 1,761 square kilometres (435,200 acres) in water depth ranging from 50 metres to 1,800 metres.
The Jubilee Field discovery well, Mahogany-1 is located 63 kilometres from the Ghanaian coastline and 132 kilometres Southwest of the Port City of Takoradi and is situated in the Tano Basin.