Cobalt International Energy, Inc. Announces Successful Pre-Salt Flow Test Offshore Angola
Houston, TX, February 9, 2012 — Cobalt International Energy, Inc. (―Cobalt‖) (NYSE:CIE) today provided additional data confirming the significance of its Cameia Pre-salt oil discovery in Block 21 offshore Angola.
The Cameia-1 Well was drilled in 5,518 feet (1,682 meters) of water to a total depth of 16,030 feet (4,886 meters), at which point an extensive wire line evaluation program was conducted. The results of this wire line evaluation program confirmed the presence of a 1,180 foot (360 meter) gross continuous oil column with over a 75% net to gross pay estimate. No gas/oil nor oil/water contact was evident on the wire line logs. An extended Drill Stem Test (DST) has now been performed on Cameia-1 to provide additional information.
The DST flowed at an un-stimulated sustained rate of 5,010 barrels per day of 44-degree API gravity oil and 14.3 million cubic feet per day of associated gas (approximately 7,400 BOEPD) with limited drawdown. The flow rate, which was restricted by surface equipment, facility and safety precautions, confirmed the presence of a very thick, continuous, high quality reservoir saturated with light oil.
Joseph H. Bryant, Cobalt’s Chairman and Chief Executive Officer, said “Cameia is an extraordinary success. The results have exceeded our pre-drill expectations and have increased our confidence in our entire West Africa Pre-salt exploration inventory. We will immediately commence our Cameia appraisal program.”
James W. Farnsworth, Cobalt’s Chief Exploration Officer, added that “This test confirmed the presence of a world-class quality carbonate reservoir at Cameia. The presence and quality of reservoir had been our key play and prospect risk prior to drilling. Based upon our analysis of the test data, if not limited by the test equipment on the rig, we believe the well would have the potential to produce in excess of 20,000 barrels of oil per day. In addition, we have yet to drill our deeper targets at Cameia, which if successful will provide additional upside potential.”
Cobalt had previously announced that it would drill its Bicuar-1 exploratory well after completing Cameia-1 well operations. However, given the exceptional results obtained from the Cameia-1 exploratory well, Cobalt, its partners and the Concessionaire have agreed to immediately initiate an appraisal drilling program to further assess the size and extent of the Cameia oil discovery and to drill to deeper objectives. Plans are underway to drill the Cameia-2 appraisal well with the Diamond Offshore Ocean Confidence drilling rig. The Cameia-2 appraisal well is expected to spud in February and will be drilled to a planned total depth of 16,000–18,000 feet. The Cameia-2 appraisal well is expected to take 100-120 days to drill, followed by an evaluation period based on the well’s results. Cobalt’s partners in Block 21 and Cameia-1 include Sonangol Pesquisa e Produção, S.A. (20%), Nazaki Oil and Gáz, S.A. (30%), and Alper Oil, Limitada (10%).
A conference call for investors will be held on Friday, February 10, 2012 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). Hosting the call will be Joseph H. Bryant, Chairman and Chief Executive Officer, Van P. Whitfield, Chief Operating Officer and James W. Farnsworth, Chief Exploration Officer. Presentation materials associated with the conference call will be available prior to the conference call in the Investors-Presentations and Publications section of Cobalt’s website at www.cobaltintl.com.
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 388913. The replay will be available until February 24, 2012.
Cobalt is an independent oil exploration and production company focusing on the deepwater U.S. Gulf of Mexico and offshore Angola and Gabon. Cobalt was formed in 2005 and is headquartered in Houston, Texas.
Forward Looking Statements
This press release includes ―forward-looking statements‖ within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 — 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 SEC filings. Cobalt undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Richard A. Smith
Vice President, Investor Relations and Planning
+1 (713) 452-2322
Lynne L. Hackedorn
Vice President, Government and Public Affairs
+1 (713) 579-9115