Cobalt Reaches Total Depth at Criollo Prospect

Cobalt reached a planned total depth of 31,145 feet TVD in the Criollo prospect exploration sidetrack well, and is in the process of suspending operations on the well. The Green Canyon 685 #1 Sidetrack is located in approximately 4,200 feet of water. The combined cost of the original well and subsequent sidetrack were within the approved AFE.

The original well discovered 55 feet of Miocene age oil bearing reservoirs and the sidetrack logged 73 feet of Miocene oil in correlative reservoirs. Both the original Criollo well and the sidetrack encountered structural complexities associated with salt, which prevented the testing of the entire prospective interval. A detailed review of the well data and reprocessing of the existing 3D pre-stack depth seismic data will be required prior to Cobalt and its partner determining the next appropriate steps, and while Criollo remains prospective, the potential size of the prospect has likely been reduced and the commerciality of the prospect has yet to be determined.

Cobalt is the operator of Criollo and has a 60% working interest in the prospect. TOTAL E&P USA, INC. owns the remaining 40% working interest.

The original well and the sidetrack were drilled using Transocean's GSF Development Driller 1 semisub. Cobalt is releasing this rig following the suspension of the sidetrack well.