U.S. Gulf of Mexico

With its high-quality hydrocarbons and reservoirs, low operating costs and favorable tax and royalty system, the deep water U.S. Gulf of Mexico has been a focus for major oil companies for more than a decade. But the hottest frontier area for exploration is in reservoirs located in sub-salt structures, which until recently, have been difficult to detect and drill. Through the investment of leading edge technology and data, Cobalt has been able to successfully build an enviable and focused portfolio and now is competitively positioned in executing the prospectivity of Cobalt’s portfolio into value.

Cobalt’s leasehold position in the U.S. Gulf of Mexico is comprised of interests in 225 deepwater blocks covering approximately 1.3 million gross acres (0.6 million net acres) with 48 identified prospects in three trends, being the Tahiti Basin Miocene, the Adjacent Miocene, and the inboard Lower Tertiary trends, which Cobalt believes all offer world-class exploration potential.

Cobalt is the operator of approximately 75 percent of its prospects in the U.S. Gulf of Mexico with an average working interest of approximately 49 percent. This puts Cobalt in a favorable position to control our own destiny and to implement exploration and development plans that compress the cycle times between exploration and production.