b'KOSMOS ENERGY LTD.Notes to Consolidated Financial Statements1. OrganizationKosmos Energy Ltd. changed its jurisdiction of incorporation from Bermuda to the State ofDelaware (the Redomestication) in December 2018. All outstanding common shares of KosmosEnergy Ltd., an exempted company incorporated pursuant to the laws of Bermuda, were automaticallyconverted by operation of law, on a one-for-one basis, into shares of common stock of KosmosEnergy Ltd., a company incorporated pursuant to the laws of Delaware. The number of shares of theCompanys common stock outstanding immediately after the Redomestication was the same as thenumber of common shares of Kosmos Energy Ltd. outstanding immediately prior to theRedomestication. Kosmos Energy Ltd. was originally incorporated pursuant to the laws of Bermuda inJanuary 2011 to become a holding company for Kosmos Energy Holdings. As part of theRedomestication, we transferred all of our equity interests in Kosmos Energy Holdings to a new,wholly-owned subsidiary, Kosmos Energy Delaware Holdings, LLC, a Delaware limited liabilitycompany. As a holding company, Kosmos Energy Ltd.s management operations are conducted througha wholly-owned subsidiary, Kosmos Energy, LLC. The terms Kosmos, the Company, we, us,our, ours, and similar terms refer to Kosmos Energy Ltd. and its wholly-owned subsidiaries, unlessthe context indicates otherwise.Kosmos is a full-cycle deepwater independent oil and gas exploration and production companyfocused along the Atlantic Margins. Our key assets include production offshore Ghana, EquatorialGuinea and U.S. Gulf of Mexico, as well as a world-class gas development offshore Mauritania andSenegal. We also maintain a sustainable exploration program balanced between proven basininfrastructure-led exploration (Equatorial Guinea and U.S. Gulf of Mexico), emerging basins(Mauritania, Senegal and Suriname) and frontier basins (Cote dIvoire, Namibia and Sao Tome andPrincipe). Kosmos is listed on the New York Stock Exchange (NYSE) and London Stock Exchange(LSE) and is traded under the ticker symbol KOS.Kosmos is engaged in a single line of business, which is the exploration and production of oil andnatural gas. We have operations in four geographic areas: Ghana, Equatorial Guinea, Mauritania/Senegal and the United States of America.2. Accounting PoliciesPrinciples of ConsolidationThe accompanying consolidated financial statements include the accounts of Kosmos Energy Ltd.and its wholly-owned subsidiaries. They also include the Companys share of the undivided interest incertain assets, liabilities, revenues and expenses. Investments in corporate joint ventures, which weexercise significant influence over, are accounted for using the equity method of accounting. Allintercompany transactions have been eliminated.Investments in companies that are partially owned by the Company are integral to the Companysoperations. The other parties, who also have an equity interest in these companies, are independentthird parties that share in the business results according to their ownership. Kosmos does not invest inthese companies in order to remove liabilities from its balance sheet.Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally acceptedin the United States requires management to make estimates and assumptions that affect the reported110'