Cobalt International Energy, Inc. Announces Third Quarter 2013 Results and Discoveries at Lontra and Mavinga
Expenditures (excluding changes in working capital) for the quarter
ending
Operational Update
Cobalt today also announced discoveries at its Lontra #1 and Mavinga #1
deepwater Pre-salt exploratory wells offshore
On Block 20, the Lontra #1 well has reached total depth, and the drilling and evaluation results confirm an oil and gas discovery. Further evaluation, including a drill stem test, is required to assess Lontra’s potential. Cobalt expects to be able to provide more information on the Lontra #1 well prior to year end.
Upon completion of testing operations, Cobalt plans to mobilize the
Petroserv SSV Catarina drilling rig to the Orca #1 Pre-salt exploratory
well (formerly the Baleia Prospect), located approximately 15 miles (25
kilometers) northeast of Lontra in Block 20. Cobalt’s partners in Block
20 include Sonangol Pesquisa e Produção, S.A. and
In addition, Cobalt announced the Mavinga #1 Pre-salt oil discovery on Block 21. The Cobalt operated Mavinga #1 exploratory well, located approximately 8 miles (12.5 kilometers) northwest of Cobalt’s 2012 Cameia discovery, reached total depth and encountered approximately 100 feet (30 meters) of net oil pay. This discovery was confirmed by the successful production of oil from mini drill stem tests, direct pressure and permeability measurements, and log and core analyses. Efforts to establish a sustained flow rate from a full drill stem test were not successful. Cobalt is in the early stages of determining what operational issues may have prevented the production from the oil reservoir during the drill stem test.
Cobalt estimates a gross oil column of up to 650 feet (200 meters) at the crest of the Mavinga structure updip of the Mavinga #1 well. Additional drilling will be required to confirm the ultimate gross thickness of the mound and its reservoir quality; however the Mavinga discovery is expected to be tied-back to and become part of the planned Cameia development complex in Block 21.
Following the temporary abandonment of the Mavinga #1 well, Cobalt mobilized the Ocean Confidence drilling rig to proceed with the drilling of the Bicuar #1A Pre-salt exploratory well located south of the Cameia and Mavinga discoveries on Block 21. Cobalt’s partners in Block 21 include Sonangol Pesquisa e Produção, S.A., Nazaki Oil and Gaz, and Alper Limitada.
“While operations are still continuing at Lontra, it’s clear that each
of Cobalt’s four wells to date has been successful in finding and
delineating new hydrocarbon resources in the Angolan Pre-salt. This is a
remarkable and highly unusual start to the exploration of such an
immense new basin,” said
Conference Call
A conference call for investors will be held today at
The call can be accessed live over the telephone by dialing (877)
705-6003, or for international callers, (201) 493-6725. A replay will be
available shortly after the call and can be accessed by dialing (877)
870-5176, or for international callers, (858) 384-5517. The passcode for
the replay is 10000665. The replay will be available until
Interested parties may also listen to a simultaneous webcast of the conference call by accessing the Newsroom-Events & Speeches section of Cobalt’s website at www.cobaltintl.com. A replay of the webcast will also be available for approximately 30 days following the call.
For more information about these announcements, see Cobalt’s
About Cobalt
Cobalt is an independent oil exploration and production company active
in the deepwater U.S. Gulf of
Forward-Looking Statements
This press release includes “forward-looking statements” within the
meaning of the safe harbor provisions of the Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934 — that is, statements related to future, not past, events.
Forward-looking statements are based on current expectations and include
any statement that does not directly relate to a current or historical
fact. In this context, forward-looking statements often address Cobalt’s
expected future business and financial performance, and often contain
words such as “anticipate,” “believe,” “intend,” “expect,” “plan,”
“will” or other similar words. These forward-looking statements involve
certain risks and uncertainties that ultimately may not prove to be
accurate. Actual results and future events could differ materially from
those anticipated in such statements. For further discussion of risks
and uncertainties, individuals should refer to Cobalt’s
Consolidated Statement of Operations Information:
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
($ in thousands except per share data) | |||||||||||||||
Oil and gas revenue | $ | — | $ | — | $ | — | $ | — | |||||||
Operating costs and expenses: | |||||||||||||||
Seismic and exploration | 14,555 | 6,327 | 41,430 | 35,682 | |||||||||||
Dry hole expense and impairment | 108,321 | 15,041 | 212,199 | 131,720 | |||||||||||
General and administrative | 22,347 | 18,916 | 68,507 | 52,239 | |||||||||||
Depreciation and amortization | 440 | 269 | 1,345 | 782 | |||||||||||
Total operating costs and expenses | 145,663 | 40,553 | 323,481 | 220,423 | |||||||||||
Operating income (loss) | (145,663 | ) | (40,553 | ) | (323,481 | ) | (220,423 | ) | |||||||
Other income (expense): | |||||||||||||||
Gain on sale of assets | — | — | 2,993 | — | |||||||||||
Interest income | 1,465 | 1,339 | 4,610 | 3,955 | |||||||||||
Interest expense | (15,802 | ) | — | (51,027 | ) | — | |||||||||
Total other income (expense) | (14,337 | ) | 1,339 | (43,424 | ) | 3,955 | |||||||||
Net income (loss) before income tax | (160,000 | ) | (39,214 | ) | (366,905 | ) | (216,468 | ) | |||||||
Income tax expense | — | — | — | — | |||||||||||
Net income (loss) | $ | (160,000 | ) | $ | (39,214 | ) | $ | (366,905 | ) | $ | (216,468 | ) | |||
Basic and diluted income (loss) per share | $ | (0.39 | ) | $ | (0.10 | ) | $ | (0.90 | ) | $ | (0.54 | ) | |||
Basic and diluted weighted average common shares outstanding | 406,941,392 | 406,543,628 | 406,803,860 | 402,272,534 |
Consolidated Balance Sheet Information:
September 30, 2013 | December 31, 2012 | ||||
($ in thousands) | |||||
Cash and cash equivalents | $ | 220,512 | $ | 1,425,815 | |
Short-term restricted funds | 228,533 | 90,440 | |||
Short-term investments | 1,221,552 | 789,668 | |||
Total current assets | 1,890,098 | 2,456,742 | |||
Total property, plant and equipment | 1,423,626 | 1,099,756 | |||
Long-term restricted funds | 166,701 | 395,652 | |||
Long-term investments | 200,597 | 36,267 | |||
Total assets | 3,715,831 | 4,011,459 | |||
Total current liabilities | 222,493 | 160,956 | |||
Total long-term liabilities | 1,152,032 | 1,161,285 | |||
Total stockholders’ equity (406,943,582 and 406,596,884 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively) | 2,341,306 | 2,689,218 | |||
Total liabilities and stockholders’ equity | 3,715,831 | 4,011,459 |
Consolidated Statement of Cash Flows Information:
For Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
($ in thousands) | |||||||
Net cash provided by (used in): | |||||||
Operating activities | $ | (239,983 | ) | $ | (141,393 | ) | |
Investing activities | (964,328 | ) | (513,797 | ) | |||
Financing activities | (992 | ) | 489,414 |
Source:
Cobalt International Energy, Inc.
Investor Relations:
Richard
A. Smith, Vice President, Investor Relations, Compliance and Risk
Management, +1 (713) 579-9141
Media Relations:
Lynne L.
Hackedorn, Vice President, Government and Public Affairs, +1 (713)
579-9115