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Kosmos announces rig contract for exploration program

Kosmos Energy (KOS) announced that it has signed a long-term rig agreement with a subsidiary of Atwood Oceanics (ATW) for the new build drillship Atwood Achiever. Currently under construction in South Korea, the rig is scheduled for completion in June of 2014 and expected to commence drilling operations in the second half of 2014. The signed agreement covers an initial period of three years at a day rate of approximately $595,000, with an option to extend the contract for an additional three-year term. Within the initial committed period, the company plans to utilize the rig term on its multi-year, high-impact exploration portfolio, while also allocating a portion of the rig term to one or more E & P operators.