Kosmos To Enter US GoM With Deep Gulf Energy Acquisition

[Editor’s note: This story was updated at 1:02 p.m. CST Aug. 6.]

Kosmos Energy Ltd. (NYSE: KOS) said Aug. 6 it will acquire Deep Gulf Energy Cos., a portfolio company of First Reserve with deepwater assets in the U.S. Gulf of Mexico (GoM), for about $1.23 billion in cash and stock.

The purchase of Deep Gulf is Kosmos’ largest acquisition and gives the company an entryway into the U.S. GoM. Currently, Kosmos’ assets are focused offshore West Africa and South America.

Kosmos Chairman and CEO Andrew G. Inglis said the company’s entry into the U.S. GoM is perfectly timed.

“With many competitors leaving the Gulf of Mexico to chase onshore shale plays, a huge opportunity has opened in the basin,” Inglis said in a statement. “The best deepwater assets can compete with the best of shale, and now is a good time to enter the Gulf of Mexico.”