Cobalt International Energy, Inc. Announces Third Quarter 2016 Results And Provides Operational Update

Cobalt International Energy, Inc. ("Cobalt") (NYSE:CIE) today announced a net loss from continuing operations of $213.7 million, or $0.52 per basic and diluted share for the third quarter of 2016, compared to a net loss from continuing operations of $49.7 million, or $0.12 per basic and diluted share, for the third quarter of 2015. The increase in loss is mainly attributable to the Rowan contract amendment of $95.9 million and the additional write off associated with the Goodfellow exploration well of $42.0 million, which together resulted in a $0.34 per share loss during the quarter.

Cobalt updated its full year guidance for capital expenditures for continuing operations in the U.S. Gulf of Mexico to be between $525-575 million in 2016, of which approximately $380 million has been spent as of September 30, 2016. These amounts exclude general and administrative and interest expenses. Total cash uses for 2016 for continuing operations in the U.S. Gulf of Mexico are currently expected to be between $725-775 million. The increase in the total cash outlay range is attributable to the early termination of the Rowan rig contract. In addition, Cobalt expects to spend approximately $130-140 million on a net basis for operations on Angola Blocks 20 and 21, of which approximately $130 million has been spent as of September 30, 2016. Cash, cash equivalents, investments, and restricted cash at the end of the third quarter were approximately $683 million. This includes $250 million of Angolan sale proceeds received prior to the close of the sale, but excludes approximately $17 million held in discontinued operations.

Operational Update

In the deepwater Gulf of Mexico, appraisal operations continue at North Platte, where Cobalt is drilling the North Platte #4 appraisal well with the Rowan Reliance drillship. This appraisal well, which commenced drilling in September 2016, has a projected total measured depth of 34,303 feet and is designed to further delineate the North Platte Inboard Lower Tertiary reservoir. Results from the North Platte #4 appraisal well are expected in early 2017. Once operations are completed at North Platte, Cobalt will release the Rowan Reliance drillship pursuant to the amendment to the drilling contract that provides for the drilling contract's early termination, which Cobalt announced on September 15, 2016. Cobalt, as operator, owns a 60% working interest in North Platte, and TOTAL E&P USA, Inc. owns the remaining 40% working interest.

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