UPDATE: Citi Lowers Kosmos Energy's PT
According to a research report published this morning, Citi has lowered Kosmos Energy's (NYSE: KOS) PT from $20 to $18.
In the report, Citi said, "Kosmos has amended its initial remediation plans for underperforming wells at the Jubilee field and now plans to perform acid stimulations on several existing wells rather than drill three more sidetracks utilizing a new well completions design. So far, initial results are encouraging with the first two stimulated wells performing as expected. The cost of an acid stimulation is ~$3-4mm net to KOS versus a sidetrack at ~$19-$22mm net. Also, per the Phase 1A development, 3 out of 5 producing wells should be on-line year end and Kosmos remains confident that gross production will reach 120 MBbls/d by year end."
Citi maintains its Buy rating on Kosmos Energy, which closed yesterday at $11.25.
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