Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
F-14
3. Restricted Cash and Cash Equivalents
Restricted cash and cash equivalents consisted of the following:
December 31,
2015
December 31,
2014
($ in thousands)
Angolan sale proceeds .............................................................. $ 250,000
—
American Express Bank pledge agreement...............................
750
—
Citibank commercial card agreement .......................................
2,200
—
Total restricted funds(1) ...................................................... $ 252,950 $
—
(1) Pursuant to the purchase and sale agreement governing the Angola Transaction, the Company received the
First Payment of $250 million during the quarterly period ended September 30, 2015. See
Note 11—Angola
Transaction
. These funds are contractually restricted by the purchase and sale agreement pending the closing
of the Angola Transaction. In addition, as of December 31, 2015, approximately $3.0 million was held in
collateral accounts established to pledge funds for security of obligations under the American Express Bank
Pledge Agreement and the Citibank Commercial Card Agreement. As of December 31, 2015, the Angolan
sales proceeds and collateral in these accounts were invested in cash, certificates of deposit, commercial paper,
and money market funds, resulting in a net carrying value of approximately $253.0 million. As of December
31, 2015, the contractual maturities of these securities are within ninety days.
4. Joint Interests and Other Receivables
Joint interest and other receivables result primarily from billing shared costs under the respective operating agreements to the
Company’s partners. These are usually settled within 30 days of the invoice date. As of December 31, 2015 and 2014, the balance in
joint interest and other receivables consisted of the following:
December 31,
2015
December 31,
2014
($ in thousands)
Partners in the U.S. Gulf of Mexico........................................... $ 50,766 $
3,275
Accrued interest on investment securities..................................
3,567
7,663
Other ..........................................................................................
376
2,637
$ 54,709 $
13,575
5. Prepaid Expenses and Other Current Assets
As of December 31, 2015 and 2014, prepaid expenses and other current assets consisted of the following:
December 31,
2015
December 31,
2014
($ in thousands)
Prepaid expenses:
Prepaid expenses(1) ................................................................... $
3,234 $
3,842
Other current assets:
Cash advance to joint venture partner(2) ...................................
26,869
—
Rig mobilization, regulatory and other related costs(3) .............
13,778
—
$ 43,881 $
3,842
(1) Amounts relate to the prepaid and unamortized portion of payments made for software licenses, related
maintenance fees and insurance.
(2) As of December 31, 2015, the $26.9 million in other current assets relates to payments of cash calls made to
our joint interest partners for drilling and completion costs.
