UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Kosmos Energy Ltd. Following Disappointing Sipo Results

In a report published Tuesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Kosmos Energy Ltd. (NYSE: KOS), but slightly lowered the price target from $16.00 to $15.00.In the report, Poole noted, “Unsuccessful Sipo Prospect Onshore Cameroon. KOS announced the Sipo-1 exploration well onshore Cameroon Oil had oil and gas shows but failed to encounter commercial reservoirs and will be plugged and abandoned with KOS will recording a $75MM exploration expense r in 2Q13. While the Ndian River Block remains an active petroleum system, management will review the data to determine future drilling opportunities. Though results from Sipo are disappointing, we had only risked onshore Cameroon success at 20%, with the potential value impact compared to the rest of the exploration portfolio minimal. Our PT is reduced to $15/sh, down $1/sh, reflecting the dry hole.”Kosmos Energy Ltd. closed on Monday at $11.92.