NEW YORK (TheStreet) -- Shares of Cobalt Energy (CIE) were falling in pre-market trading on Tuesday as the company failed to receive approval to sell two Angolan oil blocks to the country's state oil company from the country's government, Reuters reports.
Last August, Houston-based Cobalt announced it would sell its 40% stake in the offshore fields to state-owned Sonangol. Sonangol holds the remaining stake in the blocks.
Cobalt's portion of the blocks was worth roughly $1.75 billion, according to an SEC filing.
However, the Angolan government did not give approval within one year which automatically terminated the deal, Reuters noted.
The company has begun the marketing and sale process of the assets after the first failed transaction.