Cobalt International Energy, Inc. (NYSE:CIE) today announced a net loss from continuing operations of $213.7 million, or $0.52 per basic and diluted share for the third quarter of 2016, compared to a net loss from continuing operations of $49.7 million, or $0.12 per basic and diluted share, for the third quarter of 2015. The increase in loss is mainly attributable to the Rowan contract amendment of $95.9 million and the additional write off associated with the Goodfellow exploration well of $42.0 million, which together resulted in a $0.34 per share loss during the quarter.

Cobalt updated its full year guidance for capital expenditures for continuing operations in the U.S. Gulf of Mexico to be between $525-575 million in 2016, of which approximately $380 million has been spent as of September 30, 2016. These amounts exclude general and administrative and interest expenses. Total cash uses for 2016 for continuing operations in the U.S. Gulf of Mexico are currently expected to be between $725-775 million. The increase in the total cash outlay range is attributable to the early termination of the Rowan rig contract. In addition, Cobalt expects to spend approximately $130-140 million on a net basis for operations on Angola Blocks 20 and 21, of which approximately $130 million has been spent as of September 30, 2016. Cash, cash equivalents, investments, and restricted cash at the end of the third quarter were approximately $683 million. This includes $250 million of Angolan sale proceeds received prior to the close of the sale, but excludes approximately $17 million held in discontinued operations.

Operational Update

In the deepwater Gulf of Mexico, appraisal operations continue at North Platte, where Cobalt is drilling the North Platte #4 appraisal well with the Rowan Reliance drillship. This appraisal well, which commenced drilling in September 2016, has a projected total measured depth of 34,303 feet and is designed to further delineate the North Platte Inboard Lower Tertiary reservoir. Results from the North Platte #4 appraisal well are expected in early 2017. Once operations are completed at North Platte, Cobalt will release the Rowan Reliance drillship pursuant to the amendment to the drilling contract that provides for the drilling contract’s early termination, which Cobalt announced on September 15, 2016. Cobalt, as operator, owns a 60% working interest in North Platte, and TOTAL E&P USA, Inc. owns the remaining 40% working interest.

In addition, drilling operations commenced on the Anchor #4 appraisal well in September 2016. Anchor #4 has a projected total measured depth of 34,108 feet. Results from this well are expected in early 2017. Cobalt owns a 20% non-operated working interest in the Anchor discovery unit. In addition, Cobalt owns 100% working interest in two leases on the south flank of Anchor, but outside of the Anchor unit, and Cobalt believes that an accumulation of hydrocarbons associated with the Anchor reservoir extends onto these leases. Cobalt continues to evaluate these leases to determine if a well should be drilled to test the commercial feasibility of such estimated accumulation. Cobalt expects to make a decision in early 2017 regarding drilling on these leases.

At Shenandoah, Cobalt anticipates drilling to commence on the Shenandoah #6 appraisal well in late 2016 or early 2017. This well is expected to establish the oil water contact on the eastern flank of the field and quantify the full resource potential. Cobalt owns a 20% non-operated working interest in Shenandoah.

Operations also continue at the Heidelberg field, where, as previously announced, three wells were brought on production earlier this year. The first of two additional development wells was recently drilled and completed and is on production. The second development well is currently being sidetracked after the well encountered wet sands that defined the northern extent of the field. This well is expected to be completed and brought on line early next year, resulting in a total of five producing wells in the field. Cobalt owns a 9.375% non-operated working interest in Heidelberg.

With regard to Angola, Cobalt opened a data room and has been actively marketing Cobalt’s 40% working interest in Angola Blocks 20 and 21. The company is pleased with the level of industry interest in these liquid rich assets.

Conference Call

A conference call for investors will be held today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss Cobalt’s third quarter 2016 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 (877) 870-5176 or for international callers (858) 384-5517. The passcode for the replay is 13648763. The replay will be available until November 15, 2016.

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.