Cobalt International Energy, Inc. Announces Third Quarter 2013 Results and Discoveries at Lontra and Mavinga

  Cobalt International Energy, Inc. Announces Third Quarter 2013 Results and
  Discoveries at Lontra and Mavinga

Business Wire

HOUSTON -- October 29, 2013

Cobalt International Energy, Inc. (“Cobalt”) (NYSE:CIE) today announced a net
loss of $160 million, or $0.39 per basic and diluted share for the third
quarter of 2013, compared to a net loss of $39 million, or $0.10 per basic and
diluted share, for the third quarter of 2012. The current quarter included
$108 million, or $0.27 per share for the impairment of expenditures, including
$94 million associated with the Ardennes #1 exploratory well and related
prospect leases.

Expenditures (excluding changes in working capital) for the quarter ending
September 30, 2013 were approximately $290 million and for the nine months
ending September 30, 2013 were approximately $671 million. Cobalt’s updated
2013 expenditure forecast is $850 to $950 million. Cash, cash equivalents, and
investments at the end of the third quarter were approximately $2 billion.
This includes about $395 million designated for future operations held in
escrow and collateralizing letters of credit, but excludes approximately $109
million in the TOTAL drilling fund for the Gulf of Mexico.

Operational Update

Cobalt today also announced discoveries at its Lontra #1 and Mavinga #1
deepwater Pre-salt exploratory wells offshore Angola.

On Block 20, the Lontra #1 well has reached total depth, and the drilling and
evaluation results confirm an oil and gas discovery. Further evaluation,
including a drill stem test, is required to assess Lontra’s potential. Cobalt
expects to be able to provide more information on the Lontra #1 well prior to
year end.

Upon completion of testing operations, Cobalt plans to mobilize the Petroserv
SSV Catarina drilling rig to the Orca #1 Pre-salt exploratory well (formerly
the Baleia Prospect), located approximately 15 miles (25 kilometers) northeast
of Lontra in Block 20. Cobalt’s partners in Block 20 include Sonangol Pesquisa
e Produção, S.A. and BP Exploration Angola (Kwanza Benguela) Limited.

In addition, Cobalt announced the Mavinga #1 Pre-salt oil discovery on Block
21. The Cobalt operated Mavinga #1 exploratory well, located approximately 8
miles (12.5 kilometers) northwest of Cobalt’s 2012 Cameia discovery, reached
total depth and encountered approximately 100 feet (30 meters) of net oil pay.
This discovery was confirmed by the successful production of oil from mini
drill stem tests, direct pressure and permeability measurements, and log and
core analyses. Efforts to establish a sustained flow rate from a full drill
stem test were not successful. Cobalt is in the early stages of determining
what operational issues may have prevented the production from the oil
reservoir during the drill stem test.

Cobalt estimates a gross oil column of up to 650 feet (200 meters) at the
crest of the Mavinga structure updip of the Mavinga #1 well. Additional
drilling will be required to confirm the ultimate gross thickness of the mound
and its reservoir quality; however the Mavinga discovery is expected to be
tied-back to and become part of the planned Cameia development complex in
Block 21.

Following the temporary abandonment of the Mavinga #1 well, Cobalt mobilized
the Ocean Confidence drilling rig to proceed with the drilling of the Bicuar
#1A Pre-salt exploratory well located south of the Cameia and Mavinga
discoveries on Block 21. Cobalt’s partners in Block 21 include Sonangol
Pesquisa e Produção, S.A., Nazaki Oil and Gaz, and Alper Limitada.

“While operations are still continuing at Lontra, it’s clear that each of
Cobalt’s four wells to date has been successful in finding and delineating new
hydrocarbon resources in the Angolan Pre-salt. This is a remarkable and highly
unusual start to the exploration of such an immense new basin,” said Joseph H.
Bryant, Cobalt’s Chairman and Chief Executive Officer. “Our early success in
exploring the Pre-salt offshore Angola and Gabon, coupled with our success to
date in the deepwater Gulf of Mexico, are a testament to the depth of Cobalt’s

Conference Call

A conference call for investors will be held today at 10 a.m. Central Time (11
a.m. Eastern Time) to discuss Cobalt’s third quarter 2013 results. Hosting the
call will be Joseph H. Bryant, Chairman and Chief Executive Officer, John P.
Wilkirson, Chief Financial Officer, and James W. Farnsworth, Chief Exploration

The call can be accessed live over the telephone by dialing (877) 705-6003, or
for international callers, (201) 493-6725. A replay will be available shortly
after the call and can be accessed by dialing (877) 870-5176, or for
international callers, (858) 384-5517. The passcode for the replay is
10000665. The replay will be available until November 12, 2013.

Interested parties may also listen to a simultaneous webcast of the conference
call by accessing the Newsroom-Events & Speeches section of Cobalt’s website
at A replay of the webcast will also be available for
approximately 30 days following the call.

For more information about these announcements, see Cobalt’s October 2013
Investor Presentation, which can be found on Cobalt's website at in the Investor Center-Publications & Presentations

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.

Consolidated Statement of Operations Information:

               Three Months Ended                 Nine Months Ended
               September 30,                       September 30,
               2013             2012              2013             2012
               ($ in thousands except per share data)
Oil and gas    $ —               $ —               $ —               $ —
costs and
Seismic and      14,555            6,327             41,430            35,682
Dry hole
expense and      108,321           15,041            212,199           131,720
General and      22,347            18,916            68,507            52,239
and             440             269             1,345           782         
operating       145,663         40,553          323,481         220,423     
costs and
Operating        (145,663    )     (40,553     )     (323,481    )     (220,423    )
income (loss)
Other income
Gain on sale     —                 —                 2,993             —
of assets
Interest         1,465             1,339             4,610             3,955
Interest        (15,802     )    —               (51,027     )    —           
Total other
income          (14,337     )    1,339           (43,424     )    3,955       
Net income
(loss) before    (160,000    )     (39,214     )     (366,905    )     (216,468    )
income tax
Income tax      —               —               —               —           
Net income     $ (160,000    )   $ (39,214     )   $ (366,905    )   $ (216,468    )
Basic and
diluted income $ (0.39       )   $ (0.10       )   $ (0.90       )   $ (0.54       )
(loss) per
Basic and
weighted        406,941,392     406,543,628     406,803,860     402,272,534 
average common

Consolidated Balance Sheet Information:

                                        September 30, 2013  December 31, 2012
                                        ($ in thousands)
Cash and cash equivalents               $     220,512        $    1,425,815
Short-term restricted funds                   228,533             90,440
Short-term investments                        1,221,552           789,668
Total current assets                          1,890,098           2,456,742
Total property, plant and equipment           1,423,626           1,099,756
Long-term restricted funds                    166,701             395,652
Long-term investments                         200,597             36,267
Total assets                                  3,715,831           4,011,459
Total current liabilities                     222,493             160,956
Total long-term liabilities                   1,152,032           1,161,285
Total stockholders’ equity (406,943,582
and 406,596,884 shares issued and             2,341,306           2,689,218
outstanding as of September 30, 2013
and December 31, 2012, respectively)
Total liabilities and stockholders’           3,715,831           4,011,459

Consolidated Statement of Cash Flows Information:

                                For Nine Months Ended September 30,
                                2013               2012
                                ($ in thousands)
Net cash provided by (used in):
Operating activities            $   (239,983  )     $  (141,393  )
Investing activities                (964,328  )        (513,797  )
Financing activities                (992      )        489,414


Cobalt International Energy, Inc.
Investor Relations:
Richard A. Smith, Vice President, Investor Relations, Compliance and Risk
Management, +1 (713) 579-9141
Media Relations:
Lynne L. Hackedorn, Vice President, Government and Public Affairs, +1 (713)
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