管理層發言
Good day, everyone. Welcome to Kosmos Energy's Second Quarter 2026 Conference Call. As a reminder, today's call is being recorded. At this time, let me turn the call over to Jamie Buckland, Vice President of Investor Relations at Kosmos Energy.
Thank you, operator, and thanks to everyone for joining us today. This morning, we issued our second quarter 2026 earnings release. This release and the slide presentation to accompany today's call are available on the Investors page of our website. Joining me on the call today to go through the materials are Andy Inglis, Chairman and CEO; and Neal Shah, CFO. During today's presentation, we will make forward-looking statements that refer to our estimates, plans and expectations. Actual results and outcomes could differ materially due to factors that we note in this presentation and in our U.K. and SEC filings. Please refer to our annual report, stock exchange announcement and SEC filings for more details. These documents are available on our website. At this time, I'll turn the call over to Andy.
Thanks, Jamie, and good morning and afternoon to everyone. Thank you for joining us today for our second quarter 2026 results call. I'll begin today's call by reviewing the progress we've made against the four 2026 goals that we laid out at the start of the year before giving an update on each of our business units. I'll then hand over to Neal to talk about the financials before I wrap up with closing remarks. We'll then open up the call for Q&A. Starting on Slide 3. When we released our full year 2025 results in March, we laid out four key objectives for Kosmos in 2026, which is shown on the slide. I'm pleased to say in the first half of the year, we made excellent progress across all four. We've grown production from our core assets, namely Jubilee and GTA. We've delivered significant absolute and per BOE cost reductions year-on-year with a specific focus on operating costs. We've delivered a meaningful reduction in net debt already this year and are making good progress towards hitting a 20% reduction in net debt, a target we increased with our first quarter results in May. And we've continued to advance our high-quality growth portfolio, particularly in the Gulf of America with minimal capital input. Through these actions, we're delivering a stronger and more valuable Kosmos, a company with high production, lower costs and lower debt that is more resilient to future price volatility with significant upside from our deep hopper of future growth opportunities. I'll now go into more detail as we move through the slides. Starting with Ghana on Slide 4. We've seen a lot of positive progress in Ghana this year with an active drilling campaign that is delivering towards the upper end of our expectations, demonstrating Jubilee's potential. We've used a chart on this slide for the last few quarters to highlight the ramp-up in Jubilee production since the start of the current drilling campaign in the second half of 2025. Since we reported first quarter results in May, two new producers have come online, J76 and J77. The final producer well of the campaign, J50, the completion of a previously drilled well, is expected to start up in the coming days. With J50 online, we expect Jubilee gross production above 90,000 barrels of oil per day. J76, in particular, came in at the top end of our expectations and based on performance so far, is the best well we've seen at Jubilee in over a decade. The well is an example of the upside potential of the asset and shows there is a lot of future value left to play for, particularly as we start to integrate the results of the 2025 OBN seismic into our future well planning. With seven months of production, we have a robust track record that underpins our full year guidance for Jubilee, which remains unchanged at 70,000 to 80,000 barrels of oil per day. The performance of the latest wells continues to support the upper end of this range. An important takeaway from the chart at the top of the slide is the correlation between activity and performance. During periods of drilling, high FPSO uptime and sustained water injection, the field has performed well. We're, therefore, working closely with the operators to secure a rig for the '27-'28 drilling campaign for up to 10 wells with the objective of starting in mid-2027. This campaign will benefit from both the fully processed 4D and fast track OBN seismic, which will help refine and high-grade future well locations and give the partnership the best opportunity to maximize future reserve recovery. So in summary, it's an exciting time in Ghana. Jubilee, our highest margin production, is performing strongly at a time of higher oil prices, helping us to deliver our debt reduction targets for the year. And looking forward, with the benefit of new technologies, we're working closely with the operator to plan and progress next year's drilling campaign. Turning to Slide 5. GTA has continued to perform well this year. In the second quarter, gross LNG production was around 2.65 million tonnes per annum equivalent, in line with our expectations. Nine gross LNG cargos were lifted during the quarter at the upper end of guidance. For the full year, our guidance of 32 to 36 gross LNG cargos remains unchanged with 18.5 lifted in the first half of the year. During the second quarter, one condensate cargo was jointly lifted by Kosmos and the NOCs with around 300,000 barrels net to Kosmos. An additional condensate cargo is expected late in the third quarter, which is also expected to be assigned to Kosmos and the NOCs with around 400,000 barrels net to Kosmos. Due to the seasonality that we've flagged in the past, daily LNG production is expected to remain slightly lower during the summer months because of the warmer sea and air temperatures. Volumes should then pick up again later in the year as cooler temperatures return. On costs, we remain on track to hit our 50% reduction target for OpEx per MMBtu this year and see scope for further reduction in 2027. On the Phase 1 expansion for domestic gas to power, which should materially enhance project returns, there's been good progress on the ground in both Senegal and Mauritania so far this year. In Senegal, the land has now been cleared to the onshore section of the northern segment of the gas pipeline, which will connect GTA to the 250-megawatt Gandon power station being built near St. Louis. The photographs on the top of the slide show the gathering in China in May to celebrate the completion of the fabrication of the onshore pipeline before it was shipped to Senegal. The pipeline is due to arrive in country in the coming days after taking a longer route than initially planned to avoid the Middle East. In Mauritania, the country just signed a 25-year agreement with the Saudi power company for the development, finance, construction and operation of a new 230-megawatt gas-fired power plant in N'Diago, which is expected to use gas from the GTA field. These developments in Senegal and Mauritania are important steps for both countries to enhance domestic electricity generation, reduce reliance on imported fuels and support the country's long-term energy security and industrial development. Turning to Slide 6. Production in the Gulf of America for the second quarter was in line with expectations with continued solid performance for our operated Odd Job and Kodiak fields. On Winterfell, the number five well was temporarily abandoned by the operator due to casing issues encountered during drilling. Turning to the growth side of the business. Following final investment decision in March, the Tiberius project is making good progress. Last week, we successfully completed a highly competitive farm down on Tiberius, bringing Navitas into the project as a 33.33% partner. Following the farm-in, Kosmos will remain as operator with a 33.34% interest. Oxy, the owner and operator of the nearby Lucius facility, will have a 33.33% interest. The farm-in proceeds are a mix of upfront cash, carry for future development CapEx and future milestone payments. We expect the carry element to cover all of our Tiberius CapEx in 2026 and fund our share of the development through the first half of 2027. Tiberius is a low-cost, high-margin development. We now have an aligned partnership to move it forward with first oil expected in the second half of 2028. Elsewhere in the Gulf, as previously discussed, we entered into a strategic exploration alliance with Shell earlier in the year. As part of the alliance, we exchanged interest across multiple blocks across the Norphlet, which houses several material exploration prospects. Shell plans to start drilling the first of these, Trailblazer, in the first quarter of 2027. Trailblazer is targeting around 200 million barrels of oil gross equivalent resource and Kosmos is designated as a development operator in the event of success. I'll now turn it over to Neal to take you through the financials.
Thanks, Andy. Turning now to Slide 7, which looks at the financials for the second quarter in detail. As Andy mentioned, it's been a strong quarter for the company with production around 12% higher year-on-year, driven by the new wells coming online at Jubilee and the ramp-up at GTA. Realized price is higher year-on-year, reflecting the elevated pricing seen in the second quarter following the war in the Middle East. As flagged last quarter, some of the pricing of our production has a lag impact. So we should also see some benefit of the higher second quarter pricing in the third quarter. On operating costs, we've seen a material reduction in both absolute and unit cost year-on-year. Absolute operating costs in the second quarter are around 25% lower year-on-year, consistent with our ongoing efforts to drive down costs across the business. With the Equatorial Guinea disposal, we have now sold our highest cost barrels. So we'd expect absolute operating cost per unit to continue to fall through the second half of the year. The rest of the cost lines for the quarter were in line with guidance, but it's worth highlighting the interest expense reduction, which we expect to continue as we deliver on our debt reduction targets for the year. In terms of guidance for the third quarter and the full year 2026, we have updated the table in the appendix to reflect the Equatorial Guinea sale, which was completed in June. The two main line items that have been updated are production and operating costs. On production, the midpoint of the range has been moved down around 2,500 barrels of oil equivalent per day net, taking out the Equatorial Guinea barrels for the second half of the year, with the remaining portfolio on track following the strong performance year-to-date. With slightly lower production post the Equatorial Guinea sale and significantly lower costs, we remain on track to reduce OpEx per barrel by around 35% in 2026. Turning to Slide 8. We have had an active first half of the year, carrying out several important initiatives to drive a meaningful reduction in both debt and leverage, clear near-term maturities and increase liquidity. The successful GTA bond largely addressed the 2027 bond maturity, and we intend to pay the remaining stub with free cash flow. We paid down approximately $420 million of debt through free cash flow, the equity raise and proceeds from the Equatorial Guinea sale. And we ended the quarter with over $500 million of available liquidity. This progress was recognized by the rating agencies with both S&P and Fitch upgrading the company to B-, reflecting the work we've done to enhance the balance sheet in the first half of the year. Looking at the second half of the year and the things that remain on our to-do list. We've commenced discussions with the lending banks around amending and extending the RBL, and we expect that process to close during the fourth quarter, targeting a facility size of around $1.2 billion. As we make further progress on the capital structure, we will also look potentially to repay the 2028 notes later in the year. And lastly, we'll continue to take advantage of higher prices to layer in more hedges for 2027. With continued execution, we expect leverage to fall further towards 2x by year-end, a pretty significant turnaround in only 12 months. So in summary, we've worked hard in the first half of the year to reduce absolute debt and leverage while improving liquidity. There's more to do in the second half and we are being proactive and methodical to get it all done. With that, I'll hand it back to Andy.
Thanks, Neal. Turning now to Slide 9 to conclude today's presentation. As I stated in my opening remarks, we have four key objectives for 2026: grow production, lower costs, reduce debt and advance our quality growth portfolio with minimal CapEx in 2026. This slide shows the progress we've achieved year-to-date against those goals. Production for the first half of 2026 is up 18% versus the same period last year. Absolute operating costs are down 24% in the first half of 2026 versus 2025. We delivered a reduction in net debt of around 15% versus year-end 2025. And we are advancing our growth portfolio with the Tiberius FID and farm-down, continuing progress on GTA expansion and the exploration alliance with Shell in the Gulf of America. We're working hard to deliver stronger, more valuable Kosmos and look forward to delivering on our full year targets to support long-term value creation for our investors. Thank you. And I'd now like to turn the call over to the operator to open the session for questions.
分析師問答
The operator provided instructions for the Q&A session. And our first question comes from Charles Meade with Johnson Rice.
I'd like to ask about the J-76 well. And if you could characterize for us the setting of that well. And I'm thinking along the lines of is it kind of updip of one of your previous strong producers in a known fault block? Or is it maybe on the other end of the spectrum, maybe it's in some fallback that you hadn't been connected to. And I'm really trying to understand what the nature of the remaining opportunity for you is or maybe not just the nature of the opportunity in the next couple of years in Jubilee for you guys?
Yes. Thanks, Charles. Look, clearly, J-76 has been a very strong well. I think actually one of the best wells we've drilled in over a decade. I think ultimately, we're in the core part of the field and we've used the latest 4D to be able to identify some opportunities that are in that core part of the field that are updip and being unswept. So the other interesting thing about 76 is we have actually picked up some deeper horizons as well. So there's a combination of what I would say: the core areas of the field we've looked at in the past, plus some deeper opportunity. So I think in total, it demonstrates two things. There are significant opportunities in the field where we have oil that has been bypassed by the current drilling program and injection patterns and therefore can provide wells that have both significant resource and the ability to drill a well where you can have a secondary target deeper that introduces additional resource. I think it's those two elements that are important as we go forward. I think there's significant bypass oil opportunities and I think there will be continuing opportunities to find potentially deeper horizons that we haven't accessed in the past.
Got it. And that's exactly the kind of detail I was looking for. And then a follow-up question on Tiberius. I read or I went through the Navitas press release and I had a hard time following it even though it wasn't the HBU version. And so I'm wondering if you could, and I recognize some of this may be sensitive, frame up for us how we should think about the value that you achieved for your sell-down of 17% there.
Thanks for looking at this this morning. I'll pass it over to Neal, who can give you the full translation.
Yes, Charles. If you just take the math simply in terms of what we got for what we sold, it implies a gross valuation for Tiberius of around $250 million as of January 1, 2026. And again, we've got sort of a total of a bit under $45 million of consideration in between sort of upfront cash, carry and milestone payments. And so again, I think a very good result from the team in executing a really good competitive farm-down process, and we're excited that we have the right partnership for the future.
That's exactly the kind of detail I was looking for Neal. And to be clear, that $250 million gross valuation, does that include the future contingent payments?
No, that's the gross value of the asset. To determine our net, you take our net amount and add the value of the carry.
Your next question comes from Bob Brackett with Bernstein Research.
A bit of a follow-up, I suppose. Can you talk about the Logan discovery that you picked up and that is now part of the Navitas JV? Maybe what are the volumes in place? And what is the future plan to bring that part of Tiberius into production?
Thanks, Bob. I'll pass it over to Neal. He's been handling that.
Yes. So we've just got updated seismic over Tiberius. There's a good discovery well that's already on Tiberius that was drilled, I think, 10-plus years ago. Whether it's in the tens of millions of barrels of resource, we do look at it as a potential add-on into the greater Tiberius area. So we're looking at a handful of wells in Tiberius in terms of different fault blocks and ultimately connecting Logan into the system. So it's a potential one or two wells into that area to add some additional recovery.
Very clear. And a follow-up. I imagine you're frustrated with Winterfell either by the operator, by the reservoir by something. Is there a recourse there? Or do you think you've finally tackled some of the challenges there?
Yes. On Winterfell, ultimately there's a big prize in terms of reserves there. We've drilled a number of wells. There's good pay. But we have been disappointed by the drilling performance on what are relatively routine operations and the additional costs that have been incurred as a result. Hence, the pause on activity to fully understand what's causing the issues. There hasn't been a material daily impact to production, but we do want to make sure those drilling issues are resolved before any more capital gets spent on the project. So yes, it has been frustrating, but it's something the team is working hard on with the operator to make sure it gets comprehensively resolved.
Your next question comes from the line of Neil Mehta with Goldman Sachs.
I just wanted to first congratulate you guys on the progress on your net debt reduction, 15% since year-end 2025. And so Neal, maybe the first question is for you. On Slide 8, do you want to walk us through the progress that you guys have made and what your plan is through the balance of the year to hit 20% or above?
Yes, Neil, thank you. There has been a lot of good work by the entire team to deliver a good first half in terms of almost $500 million of debt reduction in the first half of the year. We're a bit under 2.5x leverage and the goal would be to get closer to 2.4x by the end of the year. From where we are from a production and cost perspective, we feel pretty good about the ability to get there even in a lower commodity price environment, and that will be the big variable between now and the end of the year. The balance of that difference, which is about $150 million, is expected to be generated from free cash flow. We've delivered free cash flow for the last two quarters and expect to do so again, which will get us to around that 20% net debt reduction year-on-year. In addition, we remain proactive in managing the maturity schedule. We tackled the 2026 maturities earlier this year, addressed the 2027s thereafter, we're working on the RBL at the moment, and then we'll tackle the 2028. Once we're done with that, we'll have more than three years of runway without maturities to worry about. We'll continue to focus on free cash flow and managing that level down beyond the 20% reduction in 2026. The strong financial performance is driven by a good operational backbone at the beginning, and the focus is doing both things simultaneously to get to the right result.
Yes. And then just a follow-up is on the unit cost at Phase 1. Again, year-over-year, there should be significant reductions in OpEx as we work through start-up costs and you get towards Mauritania Senegal scale. But just talk about where you stand in terms of the reduction in cost? And then how does Phase 1 plus fit into the equation? Like what could the cost trend down to on a multiyear basis as we try to dial in that number?
Yes. You're correct. We're getting the effects of two dynamics this year. We've pushed volume up on GTA and the performance through the first half of the year has been very strong. We were targeting 32 to 36 cargos and did 18.5 in the front end of the year. That overall production level has helped in managing the unit cost. We've also had the benefit of some of the final commissioning costs coming out. There's still improvement to make in the cost base in 2027 with different operating models that we're discussing with BP. You have the additional impacts of increasing production. As we've said before, you can add at least another 50% to the current FPSO throughput that's being supplied to the LNG vessel for domestic gas. That additional volume will have a significant impact on the unit cost because it comes with no proportional additional cost. The big agenda now, aligned with both countries, is to push on with the supply of the domestic gas. We saw progress: the pipeline in Senegal is being laid and there is connection to the first offtake, the Gandon power station. In Mauritania, there's material progress as well. That volumetric effect will simply impact the per unit cost. So we see continuing growth in margin in GTA through that Phase 1 expansion, and we are aligned with the governments in both countries on delivery.
Your next question comes from the line of David Round with Stifel.
Jubilee, I mean, the production side there has been really good. I guess I wouldn't mind if you could just touch on, please, whether previous decline assumptions may change if that's been going well.
Thanks, David. I think it's a really good question. Our focus through the first half of the year has been on the drilling program and we've seen the impact of the data and the ability to influence the selection of good wells. That selection, combined with good operator drilling performance, has led to the current levels that we're experiencing. When it comes to water injection, there is an opportunity to do better. We did well in the first quarter: voidage replacement around 130%, which is what you need and what world-class performance looks like. It hasn't been as strong in the second quarter. It's been around about half that level, actually around 65%. Some of it was scheduled maintenance and some of it was availability of the water injection pumps. We're working really hard with the operator now to focus on that issue. It's an operational issue, not a reservoir issue—it's about keeping the water injection pumps up with high availability. We've had high availability on the oil side; we need to match that on the water side. That's the focus in the third and fourth quarters and into the beginning of next year as we take a time out on the drilling program and plan to restart around the middle of next year. We're making good progress on the rig contract. I think we're clear about what we need to do, and the back end of the year will have a strong focus on water injection.
Okay. In terms of the forward program and the program you're looking at next year, I mean, is it too early to think about how many of those might be injectors versus producers?
It's a little early, David. Without being overly simplistic, in the core of the field we have pretty good injection support. The issue is more about getting the water into the ground as we move out of some areas where well density isn't as high, for example moving back into the eastern side of the field like JSE, it will be more about pairing injectors and producers. If you look through all of that, there will be a bias: I think the bias will still be more towards producers over injectors. However, the injection well we're drilling at the tail end of this program is an injector that will provide support for a future producer. So you're getting the right balance between injection and production, but overall the program will be more heavily weighted to producers.
Your next question comes from the line of Mark Wilson with Jefferies.
I'd like to ask a question about the U.S. Gulf, if I may start there. Great to see Tiberius farming completed. One well tieback initially, you speak to 100 million barrels that reminds me of Winterfell. I imagine that 100 million is kind of an area region. So I'm just wondering what you're targeting with that one well tieback in terms of recoverable reserves at Tiberius. And then same sort of question for Trailblazer, great exploration opportunity. Just wondering what Kosmos' net share would be of that 200 million target? That's my first question.
Mark, with Tiberius, the 100 million barrels is within Tiberius, and then Logan would be additional beyond that. There are three fault blocks in Tiberius, which we've penetrated one. The first well is targeting around 40 million barrels recovery. We've talked about roughly $10 F&D, which is about a $400-ish million gross development cost all in. That squares with the targets. Once infrastructure is in place, that includes the tie-in infrastructure so we can add additional wells and get production uplift sooner. We'll phase that after first oil. For Trailblazer, it's a larger prospect, about 200 million barrels gross in prospectivity. We own about a third— a little under a third—so roughly 60 million barrels net to Kosmos. It would be a multi-well development if successful. The idea would be to bring the first well as a development well, bring that online, put in the infrastructure and then bring in additional producers once it's tied back.
That's really appreciated, Neal. If I could move on to GTA because excellent to see the pipe on its way, good news for the domestic power. I'm just wondering what flexibility you have on the pricing for that or if that's part of the actual license agreements? That would be the first point. And then secondly, a lot going on at BP. So just wondering if there's any discussions over further phases at GTA?
So the agreements we have in place get us the equivalent netback of the FOB less the LNG processing fee because you're not converting it into LNG, you're just delivering it as domestic gas. So it's the FOB equivalent for domestic supply. The point is that the additional volume comes with the same economics as the LNG export. Regarding BP, there's a lot going on at BP as you say, so I don't have insight into their corporate objectives or whether GTA is core or non-core for them. For us, the most important thing is to focus on developing the asset, and we continue to work hard with BP aligned with the states around the delivery of the domestic gas, where there is real progress being made.
And that gas price mechanism has been agreed for Phase 1 in terms of the gas price, Mark.
Okay. That's great. And obviously, the main one is the net debt coming down, which is, yes, great to see as has been commented by others. And RBL refinanced in the second quarter. And Neal, you also mentioned looking to, I think you said, repay the 2028 bonds, that's the $400 million. Did I understand that correct? Or is that a refinance of those targeted this year?
Yes. Good question. This year we've tried to be methodical addressing the financing issues and the maturity schedule. We've gone through the 2026s earlier this year, we addressed the 2027s, we're working on the RBL at the moment which matures in 2029 but starts amortizing in 2027. Once that's out of the way, the next maturity to address is the 2028. It's been good to see yields on the bonds return closer to normal. As we continue to address financial risk and get the debt down, we'll see continued improvement in yields. It's something we're continuing to evaluate in terms of whether it's a repayment, an opportunistic repurchase or a refinancing later in the year. As the market and yields evolve, we'll keep an eye on it.
Your next question comes from the line of Christoffer Bachke with Clarksons Securities.
Christoffer from Clarksons here. So firstly, congratulations on another very strong quarter. I mean, operational executions continue to impress, so that's great to see. My first question is related to Jubilee and especially with the Jubilee production now tracking at or above the 90,000 barrels per day. How should we think about the sustainable production potential of Jubilee over the next quarters? And could this potentially influence the scope or pace of the 2027, '28 drilling campaign? So that's my first.
Good question. Look, when you look at Jubilee and the 2025-2026 program, it's been very successful. It's certainly been supported by the new 4D and that's enabled us to see a lot more opportunity in the field. It's worth commenting that the overall program has payback of less than six months, so you want to get back to drilling as soon as possible. There are logistical issues around ordering long lead equipment and wellheads, but we're working with the operator to get back to drilling as soon as practicable, with a current target around the middle of next year, and we're pushing to perhaps get there a little earlier. The objective is to drill up to 10 wells. By then we'll have the fully processed 4D and early product from the OBN, which will be another step change in our ability to properly describe the opportunity set and image some of the deeper elements. We see ongoing opportunity. As we've said consistently over the last several quarters, you need to do three things to deliver that potential: get back to regular drilling, deliver high FPSO uptime and get the water injection operating to get water in the ground. As we look forward, we will see some decline after the program finishes at the end of this quarter through the fourth quarter and into early next year, and then back to drilling will mitigate that decline.
Also staying on Jubilee and the full year guidance, you have highlighted that production is trending towards the upper end of guidance and you also had another well coming online. So assuming current operational performance continues, should we think about ending the year towards the upper end of the production range? And would that potentially allow you to exceed your target of 20% net debt reduction for 2026?
That's a good question and it's our objective. It's about focus on operational delivery: picking the right wells, drilling them, delivering uptime and improving water injection availability. GTA has been trending to the upper end of its guidance in terms of cargos, despite Winterfell #5, and we've had strong performance in the Gulf of America, particularly from Kodiak and Odd Job. Put all that together and yes, we are confident in hitting our numbers. It's also about managing the cost base: significant cost reduction in the first half of the year delivered through portfolio optimizations like the Equatorial Guinea sale and the TEN FPSO repurchase—those are structural and enduring changes. Together with rigorous capital management, such as the Tiberius farm down which helps manage CapEx in the back half of 2026 and into 2027, production performance, cost reduction and capital management underpin the debt reduction target.
Just the last one briefly mentioned it already, but you have ongoing discussions with the lending banks and you expect the amended RBL to be completed during the fourth quarter. Could you elaborate a bit on how those discussions are progressing? And once the RBL is completed, should investors expect you to turn your attention towards addressing the 2028? Or are those two processes going in parallel?
That's the right way to think about it. We've kicked off the RBL process; this is the fifth time we've gone through an extension process with much of the same banking group. We've started exchanging term sheets in terms of what the structure will look like. On the back of improved Jubilee performance and a constructive commodity price environment, we're well placed to execute relatively quickly. As we get that complete, the next maturity is the 2028 and that gives us more than three years of runway without maturities to manage. So the processes are sequential but related: we expect to complete the RBL in Q4 and then turn focus to the 2028 maturity.
Your next question comes from Stella Cridge with Barclays.
Sorry to add a couple more questions on the refinancing side. Just wondered if you're still targeting 2032 and '33 as potential maturity dates of the new RBL. And I was just wondering regarding the liquidity test that you would usually be tested on the '28 bonds, how does that fit into the next few months in the RBL negotiation? Do you get a waiver? Or is that just kind of rolled into the whole process?
The illustrative chart on Slide 8 is in line with what we're working on. The extension idea is to get the final maturity beyond the existing bonds and generally we aim for a six to seven year term with amortization starting after three years. The shape of the RBL will be similar to past structures and essentially puts a refinancing plan in place in three years that will force another extension. Regarding liquidity tests and redetermination, we'll roll that up into the refinancing and do those contemporaneously. We probably won't have a formal full redetermination separately because the RBL is limited by the loan life. As you pick the loan life, you have full access to the facility, which keeps liquidity available to the company. We'll handle those items together with the refi.
That's great. And if you don't mind me asking on Tiberius, could you just remind us how much gross production would come from that first well? And I noticed you also mentioned a potential second well, it would be great to hear about that as well.
Every well will be different, but a good modeling assumption is around 10,000 barrels a day gross per well. We have up to 30,000 barrels a day of capacity at Lucius and the facility, so we can accommodate multiple wells over time.
Since there are no further questions at this time, I would like to bring the call to a close. Thanks to everyone joining today. You may now disconnect your lines at this time and thank you for your participation.