Cobalt International Energy, Inc. Announces First Quarter 2013 Results and Provides Operational Update on Its Gulf of Mexico and West Africa Drilling Operations

Cobalt International Energy, Inc. (“Cobalt”) (NYSE:CIE) today announced a net loss of $128.1 million, or $0.31 per basic and diluted share for the first quarter of 2013, compared to a net loss of $36.5 million, or $0.09 per basic and diluted share, for the first quarter of 2012. The current quarter included $66 million or $0.16 per share for the impairment of expenditures associated with the Cameia-2 DST. Of these expenditures, $34 million were incurred in earlier periods.
Expenditures (excluding changes in working capital but including the payment of accrued contractual obligations for Block 20, offshore Angola) for the quarter ending March 31, 2013 were approximately $179 million. These expenditures are consistent with previously announced 2013 cash expenditures of between $750 and $900 million for the year 2013. The range is primarily dependent on the appraisal and development activity associated with the existing discoveries. Cobalt’s cash, cash equivalents, and investments at the end of the first quarter were approximately $2.5 billion. This includes about $400 million designated for future operations held in escrow and collateralizing letters of credit, but excludes approximately $144 million in the TOTAL drilling fund for the U.S. Gulf of Mexico.
Operational Update
Cobalt today provided an update on its drilling operations. In the deepwater Gulf of Mexico, Cobalt is continuing its drilling operations on the Ardennes #1 exploratory well in Green Canyon 896. Ardennes is targeting both Miocene and Inboard Lower Tertiary reservoirs. Results are expected mid-year 2013.
In West Africa, Cobalt is participating in the Total-operated Diaman #1 Pre-salt exploratory well on the Diaba block offshore Gabon. The Diaman #1 well was spud on April 17, 2013, and results from this well are expected in the second half of 2013. Cobalt holds a 21.25 percent working interest in the Diaba block. In addition to these ongoing drilling operations, Cobalt has moved the Diamond Ocean Confidence rig to its Mavinga #1 Pre-salt exploratory well location on Angola Block 21 and will commence drilling operations in the immediate future. Additionally, Cobalt expects to spud its highly anticipated Lontra #1 Pre-salt exploratory well on Angola Block 20 with the new-build Petroserv SSV Catarina rig very soon. Results from both the Mavinga and Lontra wells are expected sometime in the second half of 2013. Cobalt, as operator, holds a 40 percent working interest in both the Mavinga #1 and the Lontra #1 wells.
Conference Call
A conference call for investors will be held today at 10 a.m. Central Time (11 a.m. Eastern Time) to discuss Cobalt’s first quarter 2013 results. Hosting the call will be Joseph H. Bryant, Chairman and Chief Executive Officer and John P. Wilkirson, Chief Financial Officer.
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 412489. The replay will be available until May 14, 2013.
Source: Cobalt International Energy, Inc
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