Cobalt International Energy, Inc. Announces Second Quarter 2017 Results and Provides Operational Update

HOUSTON–(BUSINESS WIRE)–Cobalt International Energy, Inc. (“Cobalt”) (NYSE:CIE) today announced
a net loss of $186 million, or $6.28 per basic and diluted share for the
second quarter of 2017, compared to a net loss of $206 million, or $7.52
per basic and diluted share, for the second quarter of 2016. This
decrease in net loss compared to the same period in 2016 was largely
driven by a $113 million reduction in dry hole costs and impairments
offset by a $26 million increase in interest expense and a $72 million
non-cash loss on debt related embedded derivatives associated with the
recently completed debt exchanges and an increase in the market value of
secured debt during the quarter.

As of June 30, 2017, cash, cash equivalents, short term investments and
restricted cash were approximately $597 million. This includes $250
million of Angolan sale proceeds received pursuant to the purchase and
sale agreement with Sonangol, but excludes $159 million in receivables
owed to us by Sonangol.

We expect capital expenditures to be approximately $250 million in 2017,
which excludes general and administrative expenses and interest expense.
Of this amount, approximately $206 million has been spent as of June 30,
2017; however, given that drilling activities have been completed at
Shenandoah, Anchor and North Platte, cash outlays for capital
expenditures are expected to significantly decrease for the remainder of
2017. Total 2017 cash outlays are currently expected to be approximately
$550 million, of which approximately $359 million has been spent as of
June 30, 2017.

Operational Update

In the deepwater Gulf of Mexico, Cobalt completed its North Platte #4
Sidetrack 2 operations in May 2017. This well was drilled approximately
one–half mile updip of the North Platte #4 Sidetrack 1 location and
encountered approximately 400 feet of high quality Lower Wilcox pay. In
June 2017, Cobalt completed a bypass for core operation adjacent to the
North Platte #4 Sidetrack 2 location and recovered approximately 200
feet of Lower Wilcox conventional core. Following the abandonment of the
wellbore, the Rowan Reliance rig was released from operations in late
June.

In July 2017, Cobalt entered into an agreement with Chevron and the
other co–owners in the Anchor development to unitize Cobalt’s two leases
immediately south of the existing Anchor unit (Green Canyon blocks 850
and 851) into such Anchor unit. Cobalt believes the inclusion of these
leases in the Anchor unit will optimize the development plan and
maximize oil recovery from the Anchor development. The transfer of these
interests and the revised Anchor unit remain subject to customary
regulatory approval, following which Cobalt would retain its 20% working
interest in the revised Anchor unit.

At Shenandoah, Cobalt and its co–owners are continuing to explore
development options for the field. Well planning is underway for a
drilling operation expected in the first six months of 2018.

Marketing efforts with respect to Cobalt’s Gulf of Mexico assets
continue and it is expected that these efforts will conclude in late
third quarter of 2017.

With regard to Angola, the previously announced arbitration process
between Cobalt and Sonangol is progressing as planned and currently the
arbitral tribunals are being constituted. In addition, Cobalt recently
met with representatives from Sonangol and the Angolan government and it
appears that all parties share a common goal to resolve this matter
amicably. However, until this matter is resolved in a satisfactory
manner, Cobalt will continue to vigorously prosecute these claims in
arbitration and seek all available remedies.

Conference Call

A conference call for investors will be held today at 9:00 a.m. Central
Time (10:00 a.m. Eastern Time) to discuss Cobalt’s second quarter 2017
results. Hosting the call will be Timothy J. Cutt, Chief Executive
Officer, and David D. Powell, Chief Financial Officer.

The call can be accessed live over the telephone by dialing (877)
407-9039, or for international callers (201) 689-8470. A replay will be
available shortly after the call and can be accessed by dialing (844)
512-2921 or for international callers (412) 317-6671. The passcode for
the replay is 13667710. The replay will be available until August 22,
2017.

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 www.cobaltintl.com.
A replay of the webcast will also be available for approximately 30 days
following the call.

About Cobalt

Cobalt International Energy, Inc. (NYSE: CIE) is an independent
exploration and production company active in the deepwater U.S. Gulf of
Mexico and offshore West Africa. 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 federal securities laws, including 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,”
“may,” “will,” “aim,” “estimate,” “continue,” “intend,” “could,”
“expect,” “plan,” and 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 disclaims any obligation or undertaking,
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:

Consolidated Balance Sheet Information:

Consolidated Statement of Cash Flows Information:

Contacts

Cobalt International Energy, Inc.
Investor Relations:
Aaron
Skidmore, +1 713-457-4426
Director, Investor Relations
or
Media
Relations:
Lynne L. Hackedorn, +1 713-579-9115
Vice President,
Government and Public Affairs