Kosmos Energy Ltd. ( KOS ) shares are trading higher after the company disclosed the successful startup of oil production at the Winterfell development in the Green Canyon area of the U.S. Gulf of Mexico.

Winterfell (Kosmos 25.04% working interest) is a phased development.

The Winterfell unit spans several Green Canyon blocks, with potential for further development in adjacent areas where Kosmos also holds interests.

The Winterfell field is developed through a 13-mile subsea tieback. The first phase, consisting of five wells, aims to produce around 100 million barrels of oil equivalent.

Despite initial delays, the first two wells were completed in April 2024. The company said that a third well is being drilled and expected online by the third quarter of 2024.

The three wells are anticipated to produce about 20,000 barrels of oil equivalent per day (boepd).

Chairman and Chief Executive Officer Andrew G. Inglis said, “The startup of Winterfell is another significant milestone for Kosmos as we continue to deliver the projects to achieve our growth targets by year-end 2024. With high margin barrels, low carbon intensity and a quick expected payback, Winterfell has the right characteristics for Kosmos’ portfolio.”

In May, Kosmos Energy ( KOS ) reported first-quarter adjusted EPS of $0.21, beating the consensus of $0.15, and sales of $419.1 million, exceeding the street view of $415.1 million.

The company witnessed net production of ~66,700 barrels of oil equivalent per day (boepd), representing growth of 13% Y/Y, in the first quarter.

Investors can gain exposure to the stock via BlackRock ETF Trust BlackRock Large Cap Value ETF and Harbor Human Capital Factor US Small Cap ETF ( HAPS ) .

Price Action: KOS shares are up 1.44% at $5.65 premarket at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.