This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cobalt International Energy, Inc. Provides Operational Update On Its West Africa And Gulf Of Mexico Drilling Operations

Stocks in this article: CIE

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.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs