Oil and gas exploration company Kosmos Energy has announced plans to abandon the Oldfield exploration well in the US Gulf of Mexico.
The company said that it failed to find a significant amount of oil and gas in the well.
Kosmos Energy holds 40% interest in the Oldfield exploration well. Global oil and gas firm Hess holds the remaining 60%.
Located approximately 1,500m deep in water, Kosmos Energy drilled the Oldfield well to a depth of over 6,500m.
According to the company, it designed Oldfield to test a sub-salt Miocene prospect in Mississippi Canyon. It has been targeting approximately ten million barrels of oil equivalent (Mmboe) net.
The well has been drilled using the Valaris 8503 semi-submersible drilling rig. The rig has the capability to drill up to a water depth of 8,500ft to 10,000ft.
Kosmos has plans to drill three additional exploration wells in the Gulf of Mexico. It expects to record about $24m of exploration expense with respect to the drilling of the Oldfield well.
It split the drilling of these wells between the fourth quarter of last year and the first quarter of this year.
In a press statement, Kosmos said: “Following the abandonment of the Oldfield well, the Valaris 8503 rig will move to the Kodiak field to begin drilling and completion operations on a new infill producer well.
“Kosmos plans to drill three additional infrastructure-led exploration (“ILX”) wells in the Gulf of Mexico in 2020.”
In October 2018, Kosmos Energy abandoned the Pontoenoe-1 offshore exploration well in Block 42 off the coast of Suriname. This came as it had failed to find oil.
In the same year, the company acquired deepwater company operating Deep Gulf Energy (DGE) in the Gulf of Mexico for $1.225bn. This allowed Kosmos to expand its deepwater Atlantic Margin portfolio.