b'A substantial portion of our total issued and outstanding common stock may be sold into the market at anytime. This could cause the market price of our common stock to drop significantly, even if our business isdoing well.All of the shares sold in our initial public offering are freely tradable without restrictions orfurther registration under the federal securities laws, unless purchased by our affiliates as that term isdefined in Rule 144 under the Securities Act of 1933, as amended (the Securities Act). Substantiallyall of the remaining shares of common stock are restricted securities as defined in Rule 144 under theSecurities Act (unless they have been sold pursuant to Rule 144 to date). Restricted securities may besold in the U.S. public market only if registered or if they qualify for an exemption from registration,including by reason of Rule 144 or Rule 701 under the Securities Act. All of our restricted shares areeligible for sale in the public market, subject in certain circumstances to the volume, manner of salelimitations with respect to shares held by our affiliates and other limitations under Rule 144.Additionally, we have registered all our shares of common stock that we may issue under our employeebenefit plans. These shares can be freely sold in the public market upon issuance, unless pursuant totheir terms these share awards have transfer restrictions attached to them. Sales of a substantialnumber of shares of our common stock, or the perception in the market that the holders of a largenumber of shares intend to sell common stock, could reduce the market price of our common stock.Holders of our common stock will be diluted if additional shares are issued.We may issue additional shares of common stock, preferred shares, warrants, rights, units and debtsecurities for general corporate purposes, including, but not limited to, repayment or refinancing ofborrowings, working capital, capital expenditures, investments and acquisitions. We continue to activelyseek to expand our business through complementary or strategic acquisitions, and we may issueadditional shares of common stock in connection with those acquisitions. We also issue restricted sharesto our executive officers, employees and independent directors as part of their compensation. If weissue additional shares of common stock in the future, it may have a dilutive effect on our currentoutstanding shareholders.Item 1B. Unresolved Staff CommentsNot applicable.Item 2. PropertiesSee Item 1. Business. We also have various operating leases for rental of office space, office andfield equipment, and vehicles. See Item 8. Financial Statements and Supplementary DataNote 15Commitments and Contingencies for the future minimum rental payments. Such information isincorporated herein by reference.Item 3. Legal ProceedingsFrom time to time, we may be involved in various legal and regulatory proceedings arising in thenormal course of business. While we cannot predict the occurrence or outcome of these proceedingswith certainty, we do not believe that an adverse result in any pending legal or regulatory proceeding,individually or in the aggregate, would be material to our consolidated financial condition or cashflows; however, an unfavorable outcome could have a material adverse effect on our results ofoperations for a specific interim period or year.In June 2016, Kosmos Energy Ghana HC filed a Request for Arbitration with the InternationalChamber of Commerce (ICC) against Tullow Ghana Limited in connection with a dispute arisingunder the DT Joint Operating Agreement. At dispute was Kosmos Energy Ghana HCs responsibilityfor expenditures arising from Tullow Ghana Limiteds contract with Seadrill for use of the West Leo69'