The Law Firm is investigating Kosmos Energy Ltd. during the period of May 12, 2011 thru November 10, 2011, inclusive, with respect to whether the Company and certain of its officers and directors have possibly violated the federal securities laws.
The company in its Registration Statement & Prospectus for its May 2011 IPO, made certain statements with respect to oil production from a number of its oil fields. More specifically, the company said it expected oil production from the Jubilee Field to reach design capicity of the floating, production, storage and offloading facility used to produce from the field of 120,000 barrels of oil per day in the third quarter of 2011.
The company furter listed additional oil wells as "completion pending" meaning they would be producing soon. Other oil wells were listed as "plugged back" meaning the wells were set up for production from a sidetrack well. The Registration Statement & Prospectus also stated "the Jubilee Field Phase 1 development program allows us to develop Jubilee Phase 1 on a faster timeline and allowed us to achieve first oil production at an earlier date than traditional development techniques . . . . This condensed timeline reflects the lessons learned by members of our seasoned management."
The firm is investigating the truth as to the statements made, more specifically that at the time of the IPO, whether gross oil production for the Jubilee field was not on track to reach design capacity by the third quarter of 2011. Also being investigated is whether there were design defects with the oil wells which defects predated the IPO. These defects would cost millions of dollars and would prevent the oil wells from producing as expected for many years.
On July 5, 2011, Tullow Oil (a Kosmos partner) issued a press release stating that production from the Jubilee oil field was flowing at 80,000 barrels, well below the 120,000 barrels stated in the Registration Statement & Prospectus. This shortfall was attributed to a design defect with the oil well.
Then in August 2011, Tullow Oil announced that production from the Jubilee oil field was projected to remain between 82,000 - 84,000 barrels, but then in November 2011, Tullow Oil lowered forecasts from the field to 79,000 - 81,000 barrels.
Finally, on November 10, 2011, Kosmos discussed the problems with the Jubilee oil wells and identified completion issues which require one of the wells to be sidetracked as well as remediation on certain other wells. Kosmos, CFO also stated that there will be a significant cost over a few years to fix the problems. This problem was confirmed by another Kosmos partner, Andarko Petroleum and its CEO who basically admitted that they were dealing with a design problem with the oil wells that existed before the IPO.
In response to this news, the stock fell to the $13 per share range down from the $18 IPO price.
If you are a current shareholder and/or purchased your shares pursuant and/or traceable to the IPO on or about May 12, 2011 thru November 10, 2011 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.