Cobalt International Energy, Inc. (“Cobalt”) (NYSE:CIE) today provided
an update on its deepwater drilling operations in West Africa and the
Gulf of Mexico, and announced that it has entered into a new rig
contract.
In West Africa, the Total Gabon operated Diaman #1B well, drilled on the
Diaba block in offshore Gabon, has reached its total depth of 5,585
meters (18,323 feet), and encountered approximately 50-55 meters
(160-180 feet) of net hydrocarbons in the objective Pre-salt formations.
The Diaman #1B well has successfully confirmed the existence of a
working petroleum system. Early indications are that the discovered
hydrocarbons are gas with condensate. A full analysis of the hydrocarbon
encountered in the sandstone reservoirs will be conducted. The Diaman
#1B well, located in 1,729 meters (5,673 feet) of water, is more than
100 km (62 miles) from the nearest Pre-salt commercial discovery and is
the first test of the Pre-salt in deepwater Gabon. The well will be
temporarily abandoned pending further technical and commercial analysis.
Cobalt owns a 21.25 percent working interest in the Diaman #1B well.
Also in West Africa, Cobalt confirmed today that operations continue to
progress on the Lontra #1 well in Block 20 and the Mavinga #1 well in
Block 21, offshore Angola. Results from these wells are anticipated
later in the third quarter or early in the fourth quarter. Cobalt owns a
40 percent working interest and is the operator of both wells.
In the deepwater Gulf of Mexico, Cobalt announced that its Ardennes #1
exploratory well in Green Canyon Block 896, which targeted both Miocene
and Inboard Lower Tertiary reservoirs, reached its objective total depth
of 36,552 feet (11,141 meters). While reservoir sands were encountered
in the well, neither targeted zone contained commercial hydrocarbons.
Cobalt, as operator, owns a 42 percent working interest in Ardennes.
In addition, on August 5, 2013, Cobalt executed a drilling contract with
Rowan Reliance Limited, an affiliate of Rowan Companies plc, for the
Rowan Reliance, a new-build, ultra-deepwater dynamically positioned
drillship. This state-of-the-art deepwater rig, equipped with a 2.5
million pound hookload capacity and two seven-ram BOP systems, provides
the robust drilling and safety capabilities needed to drill all of
Cobalt’s deepwater Gulf of Mexico wells, including Cobalt’s Inboard
Lower Tertiary exploratory wells and Cobalt’s North Platte appraisal
wells. The Rowan Reliance drillship will be capable of operating in
water depths of up to 10,000 feet (3,048 meters) and drilling to
measured depths of up to 40,000 feet (12,192 meters). The drilling
contract provides for a firm three-year commitment, expected to begin in
early 2015, at a day rate of approximately $602,000 (inclusive of
mobilization fees) and two one-year extension options at day rates to be
mutually agreed.
“The Diaman #1 well results represent an excellent start to the
exploration of the emerging Pre-salt basin in deepwater Gabon”, said
James W. Farnsworth, Cobalt’s Chief Exploration Officer. “This discovery
is a culmination of a five-year exploration program in which we and our
partners have been successful in identifying and testing the initial
phase of Gabon’s Pre-salt potential. Combined with Cobalt’s
industry-leading deepwater Pre-salt position in offshore Angola, this
offshore Gabon Pre-salt discovery further deepens our understanding of
the West Africa Pre-salt margin. We look forward to additional drilling
and evaluation activity on the Diaba license following the integration
of these important well results.” Farnsworth further added, “While our
Ardennes test did not discover commercial hydrocarbons, we were able to
confirm our Inboard Lower Tertiary geologic model that predicted a high
potential sand fairway. Our challenge now will be to apply what we’ve
learned at Ardennes to further enhance our understanding of the Inboard
Lower Tertiary play.”
Van Whitfield, Cobalt’s Chief Operating Officer, said, “While
disappointed with the Ardennes #1 well results, I am extremely proud of
the organization’s performance in safely drilling the deepest well
drilled to date in the deepwater Gulf of Mexico. Cobalt remains very
excited about our Gulf of Mexico prospect portfolio and the potential of
the Inboard Lower Tertiary following our previously announced North
Platte and Shenandoah discoveries. Our commitment to this basin is
further evidenced by the long term drilling contract we recently
executed with Rowan for the new ultra-deepwater Rowan Reliance
drillship.”
Following operations on the Ardennes #1 well, the ENSCO 8503 rig will
move to drill the Aegean #1 exploratory well in Keathley Canyon Block
163. Aegean #1 will test an Inboard Lower Tertiary prospect located 18
miles (29 km) southwest of Cobalt’s North Platte discovery. Cobalt, as
operator, owns a 60 percent working interest in Aegean.
About Cobalt
Cobalt is an independent oil exploration and production company active
in 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 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 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, other than as required by law. 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.
Copyright Business Wire 2013