Press release from Business Wire
Cobalt International Energy, Inc. Announces Force Majeure Notification on Drill Rig
Tuesday, June 01, 2010
Cobalt International Energy, Inc. Announces Force Majeure Notification on Drill Rig08:30 EDT Tuesday, June 01, 2010 HOUSTON (Business Wire) -- Cobalt International Energy, Inc. (“Cobalt”) (NYSE: CIE) today announced that it had invoked the force majeure provision under the drilling contract with Diamond Offshore Company for the Ocean Monarch drilling rig. This rig was moored and ready to begin drilling operations at the location of our North Platte #1 exploratory well on Garden Banks 959. The reason for invoking force majeure was the steps announced on May 27, 2010 by the United States Government which suspended all drilling operations in the deepwaters of the Gulf of Mexico. Cobalt had obtained all necessary permits and insurance as required by law and regulation to commence drilling operations. Cobalt believes that the direct financial impact of triggering force majeure on the Ocean Monarch will result in a net expenditure to the company of approximately $15 million. Looking to the future, Cobalt believes that the action taken by the United States Government on May 27, 2010 will likely result in the delay of our Gulf of Mexico drilling program by approximately 6 months, or roughly one well. Cobalt expects to accept delivery of the Ensco 8503 drilling rig in the 4th quarter of 2010, and be in a position to begin drilling operations in the 1st quarter of 2011. The initial term for the Ensco 8503 is two years with an option to renew for an additional two years. Other than this initial six month delay, Cobalt reaffirms its intentions to execute all aspects of its entire Gulf of Mexico exploration and appraisal program as previously announced. A revised drilling schedule will be published as soon as more facts are known. Cobalt also confirms its intent to initiate drilling operations offshore Angola in the 4th quarter of 2010 or the 1st quarter of 2011. About Cobalt Cobalt is an independent oil and gas exploration and production company focusing on 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 United States Private Securities Litigation Reform Act of 1995 — 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 our 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. 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.