New Contract for Kosmos in Cameroon

Kosmos Energy 12-22-2006

Kosmos Energy through its wholly owned subsidiary in Cameroon announced that it has signed a production sharing contract to operate the Ndian River Block located mostly onshore the Republic of Cameroon.

"Our participation in a second block in Cameroon reaffirms our conviction that the region has great exploration potential. We will pursue our niche business strategy of targeting high-potential, combined structural/stratigraphic oil and gas opportunities in West Africa," said James C. Musselman, Kosmos Chairman and Chief Executive Officer. "We look forward to working again with Societe Nationale des Hydrocarbures (SNH) and our host government, the Republic of Cameroon."

The Ndian River Block includes approximately 2,510 square km and is located on the Rio del Rey Basin coastal strip, 100 km west-northwest Douala city in northwestern Cameroon.

There will be no costs involved during the exploration and appraisal contract phases for SNH up until production is achieved if SNH decides to exercise its option for a 15% stake and back in to the project. Kosmos will start by focusing on the under-explored northern extension of the late Cretaceous/lower Tertiary turbidite play, which has been fruitful in neighboring regions. During late 2007 and early 2008, Kosmos' plan is to conduct a 2D seismic survey after which the company expects to drill an exploratory well as part of the seven-year exploration and exploitation agreement.