Here's Why Kosmos Energy Ltd's Stock is Sinking Today
Shares of Kosmos Energy (NYSE: KOS) plunged on Tuesday and were down nearly 12% at 2:30 p.m. EST. The culprit was an update on the offshore oil and gas producer's exploration program in Mauritania, which is on the northwestern coast of Africa.
Kosmos Energy announced that its Lamantin-1 exploration well offshore Mauritania failed to find commercial hydrocarbons. The company owns a 28% stake in this well as part of a joint venture agreement it signed with BP (NYSE: BP). While the partners well did discover traces of oil and gas, they mostly encountered water. Because of that, they plugged and abandoned the well. This well was the second failed attempt since Kosmos began the second phase of its exploration program in Mauritania and neighboring Senegal earlier this year after signing an agreement with BP. In that well, the only thing they found was water. Though, the partners did find some success in Senegal earlier in the year.
Image source: Getty Images.
Source: Fool.com
Kosmos Energy Ltd Stock
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As a result the target price of 8 € shows a positive potential of 43.52% compared to the current price of 5.57 € for Kosmos Energy Ltd.
