Cobalt Closes Over-Allotment Option

Cobalt closed the sale of an additional 7,978,000 shares of its common stock at the public offering price of $13.50 per share pursuant to the over-allotment option exercised by the underwriters of its recently completed initial public offering. The exercise of the over-allotment option brings the total number of common shares sold by Cobalt in the public offering to 70,978,000 shares. Including proceeds from the exercise of the over-allotment option, gross proceeds from Cobalt’s initial public offering and a simultaneous 3,125,000 share offering at $13.50 per share exempt from the registration requirements of the Securities Act of 1933 pursuant to Regulation S were $1.0 billion.

Cobalt intends to use the net proceeds from the offering and other resources available to it to fund its capital expenditures, and in particular Cobalt's drilling and exploration program through 2011, and its related operating expenses, and for general corporate purposes.