b'In June 2016, Kosmos Energy Ghana HC filed a Request for Arbitration with the InternationalChamber of Commerce against Tullow Ghana Limited in connection with a dispute arising under theDT Joint Operating Agreement. At dispute was Kosmos Energy Ghana HCs responsibility forexpenditures arising from Tullow Ghana Limiteds contract with Seadrill for use of the West Leodrilling rig once partner-approved 2016 work program objectives were concluded. Tullow sought tocharge such expenditures to the DT joint account. Kosmos disputed that these expenditures werechargeable to the DT joint account on the basis that the Seadrill West Leo drilling rig contract was notapproved by the DT operating committee pursuant to the DT Joint Operating Agreement and that theSeadrill West Leo drilling rig contract had not been entered into in connection with joint operations.In July 2018, the International Chamber of Commerce (ICC) issued its Final Award in thearbitration in favor of Kosmos. As a result, we recovered from Tullow Ghana Limited the disputedcharges in the amount of $12.9 million in the form of cash payments and offsets against otherunrelated joint venture costs, which include amounts previously paid under protest as well as certaincosts and fees incurred pursuing the arbitration. Additionally, we were not required to fund a portion,estimated by Tullow to be approximately $50.8 million, of Tullows liability to Seadrill.U.S. Gulf of MexicoIn September 2018, we completed the acquisition of Deep Gulf Energy (together with itssubsidiaries DGE), a deepwater company operating in the U.S. Gulf of Mexico, from First ReserveCorporation and other shareholders for a total consideration of $1.275 billion, comprised of$952.6 million in cash, $307.9 million in Kosmos common stock and $14.9 million of transaction relatedcosts. We funded the cash portion of the purchase price using cash on hand and drawings under ourexisting credit facilities.As part of the DGE transaction, Kosmos acquired a portfolio of producing assets,infrastructure-led exploration growth assets, and a high-quality inventory of exploration prospects.During the third quarter, the Nearly Headless Nick prospect (22.0% working interest) was successfullydrilled to a total depth of 19,052 feet and encountered approximately 85 feet of net pay in the MiddleMiocene objective within the Mississippi Canyon 387 block. Nearly Headless Nick, a subsea tie back,which is expected to be brought online through the Delta House facility in the fourth quarter 2019,adds near-term reserves and production growth.During the third quarter of 2018, Kosmos expanded its inventory as one of the most activeparticipants in U.S. Gulf of Mexico Lease Sale 251 in which we were awarded seven new deepwaterblocks. As part of the Companys strategy to expand its position in the U.S. Gulf of Mexico, Kosmosincurred approximately $50.0 million of exploration expense to acquire seismic over new prospectiveareas and to re-license seismic over existing fields during the third quarter.In late September, a second development well was brought online at Odd Job in MississippiCanyon Block 215 (54.9% WI) and connected to the Delta House facility, providing near-term growthat the field. A third Odd Job well located in Mississippi Canyon Block 214 (61.1% working interest)drilled in May 2018 is expected to start production through existing subsea infrastructure to the DeltaHouse facility in the fourth quarter 2019.During the fourth quarter of 2018, the Tornado #3 development well (35.0% working interest) wassuccessfully drilled to a total depth of 21,600 feet and encountered approximately 130 feet of net pay inthe Pliocene objective within the Green Canyon Block 281. Tornado #3, a subsea tie back, is expectedto be brought online through the Helix Producer I, the vessel to which Tornado production flows, inthe second quarter of 2019.Our U.S. Gulf of Mexico production during the period from transaction close until the end of the2018 averaged approximately 23,700 boepd (net) (~81% oil).77'