Cobalt Updates on Blocks 9 and 21, Offshore Angola

Cobalt has executed Risk Services Agreements for Blocks 9 and 21 offshore Angola with the national oil company of Angola, Sociedade Nacional de Combustíveis de Angola - Empresa Pública (Sonangol E.P.), as well as Sonangol Pesquisa e Produção, S.A. (Sonangol P&P), Nazaki Oil and Gáz, S.A. and Alper Oil, Limitada.

The Risk Services Agreements, which were executed and dated on February 24, 2010, govern Cobalt's 40% interest in and operatorship of Blocks 9 and 21 offshore Angola and form the basis of Cobalt's exploration, development and production operations on these blocks. Their execution is a key milestone that allows for the commencement of Cobalt's offshore Angola drilling program, currently planned to begin within the next twelve months. The terms of the executed Risk Services Agreements are substantially the same as the terms that were finalized and initialed by Sonangol E.P. and Cobalt in October 2009 and disclosed as part of Cobalt's initial public offering.

Cobalt's Chairman and Chief Executive Officer, Joseph H. Bryant, said, "We are delighted to announce the execution of the Risk Services Agreements for Blocks 9 and 21 offshore Angola. We have worked closely with Sonangol for the past several years regarding the pre-salt play offshore Angola, beginning before the announcement of the Tupi discovery offshore Brazil. We are pleased that these agreements have been signed so that we can now embark with Sonangol and the contractor group on a robust drilling program to prove the Angolan pre-salt play on these blocks as soon as possible."