March 2012 Cameia #1 Well Test Offshore Angola February 2012

Transcription

1 Cameia # Well Test Offshore Angola February 202

2 Forward Looking Statements The information contained herein is not, and under no circumstances is to be construed to be, a prospectus, offering memorandum, advertisement or public offering of any securities of Cobalt. Neither the United States Securities and Exchange Commission nor any other state securities regulator nor any securities regulatory authority elsewhere has reviewed or made any determination as to the truthfulness or completeness of the disclosure in this document. Any representation to the contrary is an offense. Recipients of this summary are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard. Certain statements, estimates and financial information contained in this summary ("Estimates") constitute forward-looking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the Estimates or results implied or expressed in such forward-looking statements. While presented with numerical specificity, the Estimates are based () on certain assumptions that are inherently subject to significant business, economic, regulatory, environmental, seasonal, competitive uncertainties, contingencies and risks including, without limitation, ability to obtain debt and equity financings, capital costs, construction costs, well production performance, operating costs, commodity pricing, differentials, royalty structures, field upgrading technology, and other known and unknown risks, all of which are difficult to predict and many of which are beyond Cobalt's control, and (2) upon assumptions with respect to future business decisions that are subject to change. There can be no assurance that the Estimates or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the Estimates. Under no circumstances should the inclusion of the Estimates be regarded as a representation, undertaking, warranty or prediction by Cobalt, or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that Cobalt will achieve or is likely to achieve any particular results. The Estimates are made as of the date hereof and Cobalt disclaims any intent or obligation to update publicly or to revise any of the Estimates, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forwardlooking statements or information due to the inherent uncertainty therein. 2

3 Cobalt s Deepwater Oil Portfolio Delivers Portfolio Characteristics Current Discoveries Angola Emerging oil play with Cobalt st Mover Advantage World-class Pre-salt oil discovery Large follow-on Pre-salt resource potential Cameia 202 Operating control Large acreage position in emerging oil play High-Materiality, Risk Diversified, Oil-Focused Portfolio Gabon Gulf of Mexico Miocene Large Pre-salt resource potential Proven regional hydrocarbon system Exceptional fiscal terms Proven oil play with near-term cash flow potential Exceptional prospect economics Opportunity to leverage near-by infrastructure for early production Drilling Early 203 Heidelberg Operating control Gulf of Mexico Inboard Lower Tertiary Emerging oil play with Cobalt st Mover Advantage Initial discovery validated regional geologic model Large resource potential with follow-on optionality Operating control Shenandoah 3

4 Cameia # An Exceptional Success Cameia # Drill Stem Test Results Picture of Flow Test Sustained rate of 5,00 bopd and 4.3 mmcfd (~ 7,400 boepd) Minimal bottom-hole pressure draw down Upon shut-in, bottom-hole pressure reverted to initial state in less than one minute Perforated less than /3 of reservoir section Rate mechanically constrained by surface equipment and facilities and safety precautions Actual flow capacity expected to be several times the tested flow rate (in excess of 20,000 bopd ) Data indicates a continuous, very thick high quality reservoir saturated with light oil Well capability estimate based on Cobalt analysis. The completion of the Cameia #2 appraisal well, as well as potential additional appraisal wells, other testing and production from completed and producing wells, will be required to further appraise this discovery, to better estimate its characteristics and potential resources and reserves and to ultimately understand its commerciality 4

5 Cameia # - Well Results Exceed Expectations Pre-Drill Results U.S. Quarter Reservoir Thickness Reservoir Quality 490 ft. Net Pay (Mean case) Key Risk ~,200 ft. oil column ~ 900 ft. Net Pay estimate >75% net-to-gross Highly permeable and fractured carbonates Empire State Building (,250 ft.) ~2 ft. ~8 ft. Actual Wellbore (Image from Ultrasonic Borehole Imager Tool) Determination of aerial extent requires follow-on appraisal of Cameia reservoir 2 Decision to not drill deeper in this wellbore driven by desire to: ) preserve the Pre-salt Carbonate reservoir section drilled and 2) accelerate understanding of reservoir by validating log assessment with actual production test Oil Quality Key Risk 44 API Area 5,000-25,000 Acres 7,500-25,000 Acres Reservoir Sections Pre-salt Carbonate and Syn-rift Sections Decided to drill only Pre-salt Carbonate Section 2 Cameia discovery significantly de-risks Angola Pre-salt play 5

6 Accelerating the Appraisal of Cameia Discovery Cobalt License Discovered Resources Potential Resources Cobalt Pre-salt Discovery Cobalt Upcoming Well Cobalt Upcoming Well Currently Drilling Block 2 Cameia # 2 Miles Cameia #2 appraisal well being drilled immediately following Cameia # Well location ~2.5 miles from Cameia # Cameia #2 Well planned up to ~8,000 ft., ~2,000 ft. deeper than Cameia # Estimated time to drill 00 to 20 days N Post-salt Salt Sag Syn-rift Cameia # Cameia #2 Basement Basement S Cameia #2 results will help better define aerial extent of Cameia discovered resources and test deeper Pre-salt (Syn-rift) potential Essential information to advance ongoing development planning Invaluable in helping to better quantify facility requirements Cameia Cross Section 6

7 Evaluation of Potential Cameia Development Options Underway Potential Cameia Development Concept Subsea Tree Internal pre-concept development plans progressing Development model predicated on a phased development approach Sub-sea concept and design specifications have been developed and are being validated Exploring opportunities for accelerating FPSO access for early production with third party facility providers Static modeling and flow simulation evaluations will be utilized to forecast reservoir performance via multiple development options Concessionaire and Partner discussions on development concept and approach have been initiated Development approach and timing will be better defined following the results of Cameia #2 7

8 Extensive Running Room in Pre-salt on Blocks 2 and 20 Cobalt License Pre-salt Discoveries Cobalt Prospects Cobalt Pre-salt Discovery Pre-salt Discovery Cobalt Upcoming Well Currently Drilling Lontra Block 20 Baleia #A Discovery (996) Cobalt 40% (Operator) Sonangol 30% Others 30% Cameia discovery significantly de-risks Angola Pre-salt play Multiple follow-on Pre-salt prospects currently identified on Block 2 (using 3-D seismic) and Block 20 (using 2-D seismic) North Cameia Block 2 Bicuar Bicuar, North Cameia and Lontra prospects planned to be drilled in 2H Cameia # Discovery Cameia #2 Exposes multi-billion barrel gross unrisked resource potential Gulf of Mexico Basin 0 Miles 5 Cobalt 40% (Operator) Sonangol 20% Others 40% Angola Pre-salt play success and vast follow-on potential will be our focus High-graded prospect based on latest 3-D seismic reprocessing 8

9 Bicuar, North Cameia and Lontra Initial Follow-on Prospects on Blocks 20 and 2 DISCOVERY Baleia #A (996) Lontra Prospect North Cameia Prospect DISCOVERY Cameia # (202) Cameia #2 Appraisal Well Bicuar Prospect N ~5 miles ~30 miles ~0 miles ~2 miles ~0 miles S Post-Salt/ Albian Salt Salt Post-Salt/ Albian Salt Sag Sag Syn-Rift Basement Basement Syn-Rift Block 20 Block 2 Large Pre-salt structures on trend with Cameia # discovery 9

10 Bicuar- Targets All Pre-salt Intervals Cobalt Cobalt Upcoming License Well Potential Resources Cobalt Upcoming Well Cobalt Upcoming Well Block 2 Bicuar # Prospect characterization Objectives Multiple Pre-salt intervals (Carbonate and Syn-Rift) Cobalt 40% working interest and operator; 62.5% cost interest Prospective resources over billion barrels (gross unrisked) N 2 Miles Bicuar # S Well parameters Water Depth - ~5,000 feet Proposed well depth - 8,000-2,000 feet Post-Salt/ Albian Salt days to drill and evaluate 2 $00-20 MM (gross), ~$63-75 MM (net) Sag Drilling operations expected to commence in 2H 202 Syn-Rift Basement Per independent assessment by DeGolyer and MacNaughton (February 20) 2 Assumes days for drilling and 0-20 days for evaluation (if well is successful) 0

11 Angola Block 9 Prospectivity Improved by Cameia # and Maersk s Azul # Discoveries Cobalt Leases Pre-salt Discoveries Cobalt Prospects Pre-salt Discovery Cobalt Upcoming Well Loengo Maersk Azul # (20) 3,000 BOPD Mini-DST 0 Miles Block D Survey Block 9 Cobalt 40% (Operator) Sonangol 20% Others 40% Denden # (983) 800 BOPD DST 3-D seismic survey completed in 20 confirms Pre-salt prospects Cobalt s Loengo prospect lies between Maersk s Azul- (20) and Denden- (983) Pre-salt discoveries Anticipate drilling first Pre-salt well in 203 (dependent on rig schedule) Maersk Azul # Loengo Denden # W E Maersk Block 23 Block 23 Cobalt Block Block 9 9/09 ~0 ~ 6 mi km Post-Salt Target Zone Basement High-graded prospect based on latest 3-D seismic acquisition and reprocessing Salt Sag Syn-Rift

12 Angola Kwanza Basin Pre-Salt License Round Validates Cobalt's First Mover Position Pre-salt Blocks and Operators Named Cobalt License New License Industry Existing License Gabon COP 36 ENI 35 COP 37 STATOIL 38 Cobalt TOTAL 40 BP 9 Cobalt STATOIL 2 REPSOL 22 TOTAL 25 MAERSK 8 Cobalt MAERSK 9 23 BP 24 Angola s 20 License Round Pre-salt blocks offered in Kwanza and Benguela basins 3 E&P companies participated - dominated by super-majors, majors and NOCs Block 20 (Cobalt 40% working interest and operator) was the most coveted block by industry in the license round New license areas will be a major focus of industry exploration activity over the next few years Cobalt s leading operatorship position New License Existing License Angola PBR Kilometers Cobalt STO COP BP TOT Maersk ENI PBR REP Angola Pre-salt Block Operators Source: The Oil Daily, company press releases 2

13 Large Structures Characterize Gabon Pre-salt Inventory 0 Cobalt License Pre-salt Discoveries Cobalt Prospects Pre-salt Discovery Cobalt Upcoming Well Miles 5 Mango Prospect 2 Diaba Mango South Prospect 2 Rabi-Kounga 940 MMBOE Gabon Elf Maruba #2 982 discovery,250 BOPD in Pre-salt TOTAL Gabon 63.75% (Operator) Cobalt 2.25% Others 5% Pre-salt play is already proven onshore and near shore Gabon Rabi-Kounga field (940 MMBOE) Elf Maruba #2 (982) Pre-salt oil discovery Fiscal terms of Diaba block are very attractive Success of Cameia # increases Cobalt s confidence in our understanding of the Deepwater Gabon Pre-salt play New 3-D survey confirmed similar large traps Similar source rocks as Angola Sandstone reservoirs expected in Gabon compared to carbonate reservoirs in Angola Anticipate drilling Diaba well in early 203 (dependent on rig schedule) Multiple Pre-salt prospects currently identified on large 2.2 million acre block (~2x Angola blocks) Volumes represent proved plus probable reserves. Source: Wood Mackenzie 2 Previously comprised our Longhorn prospect 3

14 Cobalt s Gulf of Mexico Portfolio Multiple Play Types, Numerous Oil-Focused Prospects Inboard Lower Tertiary First mover in emerging GOM play 27 identified Cobalt prospects 2 (includes Shenandoah discovery) Over 2 billion BOE net unrisked prospective resources 3 Miocene Trend Key leaseholder in established GOM play 25 identified Cobalt prospects 2 (includes Ligurian/Heidelberg discovery) Over billion BOE net unrisked prospective resources 3 Rum Ramsey North Platte Racer Ligurian #2 Heidelberg Appraisal Cobalt Prospects Aegean Shenandoah # Ardennes Shenandoah #2 Heidelberg # Miocene Inboard Lower Tertiary Cobalt Acreage Cobalt Successful Well Currently Drilling Cobalt Upcoming Well 0 Miles 40 Cobalt is the 4th Largest Leaseholder in the Deepwater GOM 4 Includes Atwater Valley, Green Canyon, Keathley Canyon, Mississippi Canyon, Garden Banks and Walker Ridge protraction areas (as of January 202); Source: ESA GOM, Company analysis 2 5 prospects have Miocene and Lower Tertiary dual objectives 3 Per independent assessment by DeGolyer and MacNaughton (February 20)

15 Our GOM Lease Inventory A Source of Long-term Value Current Blocks 4th Largest Leaseholder in Deepwater GOM Current Blocks Enviable Remaining Lease Tenure Non-Operated Operated Blocks Remaining After 205 We operate ~75% of our blocks with an average working interest of ~50% 76% of our GOM acreage remains after 205 Defined as Atwater Valley, Green Canyon, Keathley Canyon, Mississippi Canyon, Garden Banks and Walker Ridge protraction areas (as of January 202) and Exploration Leases only Source: ESA GOM, Company analysis 5

16 Ligurian / Heidelberg Appraisal of Cobalt's Initial Miocene Discovery in Progress Tonga West Ligurian #2 Heidelberg # Discovery (2009) Well encountered more than 200 ft. of net oil pay in Miocene reservoir Cobalt Leases Discovered Resources Potential Resources Cobalt Successful Well Cobalt Currently Upcoming Drilling Well 2 miles SW Ligurian #2 Ligurian- Cobalt 45% (Operator) TOTAL 30% Sonangol 25% Heidelberg # Salt Heidelberg # Heidelberg Appraisal Anadarko 44.25% (Operator) Cobalt 9.375% Others % Tonga West Salt NE Successful Heidelberg Appraisal well (202) Well encountered ~250 ft. of net oil pay on the southern flank of the field Immediate geologic sidetrack planned to test downdip extent of reservoir Ligurian #2 well results expected in 2Q 202 Will appraise potential northwestern flank of the discovered reservoir and test deeper Miocene formations Salt Miocene Reservoirs Cobalt pre-concept development plans well advanced Sub-sea concept and design specifications defined Engaging third party facility providers to evaluate accelerating early development 6

17 Greater North Platte Complex Dominant Position in the Emerging Inboard Lower Tertiary Play Cobalt Leases Cobalt Discovery Cobalt Prospects Cobalt Inboard Lower Tertiary Discovery Williams Fork Latvian Inboard Lower Tertiary Discovery Cobalt Upcoming Well Cobalt Upcoming Well Potential Cobalt Follow-on Prospect Baffin Bay North Platte South Platte Shenandoah # (2009) BP Tiber # Discovery (2009) BP Kaskida Discovery (2006) Aegean Shenandoah #2 0 0 Multiple prospects on trend with Shenandoah, Kaskida and Tiber discoveries North Platte prospect planned to spud following Ligurian; well results expected in 4Q way structure in heart of play fairway Gross unrisked resources: MMBOE (mean-high range) 60% Cobalt-operated working interest; 20% cost interest in first well 2 All required permits in hand Extensive running room in the Greater North Platte Complex 4 additional prospects nearby North Platte with over 2 BBOE resource potential Miles Gross unrisked resources; Per independent assessment by DeGolyer and MacNaughton (February 20) 2 20% cost interest up to $50 MM gross well cost; 60% cost interest thereafter 7

18 Shenandoah Appraisal of Cobalt s Initial Inboard Lower Tertiary Discovery Shenandoah # Shenandoah #2 Shenandoah Discovery Discovery well (2009) encountered more than 300 ft. of net oil pay in Lower Tertiary reservoir Cobalt Leases Discovered Resources Potential Resources Cobalt Discovery Cobalt Upcoming Well SW Salt Lower Tertiary Reservoirs Shenandoah #2 Anadarko 30.0% (Operator) Cobalt 20.0% Others 50.0% Shenandoah # 2 miles NE Recent 3-D WAZ seismic and reprocessing enhanced image of discovered reservoir and understanding of overall resource potential Shenandoah #2 appraisal well results expected in late 202 or early 203 Will appraise down dip extent of discovered reservoir and evaluate additional potential Lower Tertiary reservoirs 8

19 Our Partners are the World s Largest and Most Experienced Deepwater Operators Cobalt Operated Prospects * * * Public Company Market Cap >$00B $20-00B <$20B Cobalt Non- Operated Prospects * Private Company National Oil Company West Africa Partners Contingent on unitization of Racer and Rum Ramsey prospects Source: Bloomberg (as of February 202) * Gulf of Mexico Partners 9

20 Catalyst-Rich Drilling Program in Each Focus Area H 202 2H Cameia # Cameia #2 (Drilling) Heidelberg Appraisal Ligurian #2 (Drilling) West Africa Pre-salt Gulf of Mexico Successful Well Bicuar North Platte Shenandoah #2 Rum Ramsey Block 2 Well (North Cameia) Diaba Well (Mango or Mango S.) Block 9 Well (Loengo) Block 20 Well (Lontra) Potential Block 2 Appraisal Well(s) Ardennes Aegean Racer Potential GOM Appraisal Well(s) Potential for 5+ High Impact Deepwater Exploration & Appraisal Wells 20

21 Balance Sheet Strength to Fund Multi-Year Exploration and Appraisal Program ($B, Net) $0.5 ~$. - $.4 ~ $.5 West Africa GOM Other (3) ~$ MM ~$ MM ~$50 MM ~$0.6 - $0.9 TOTAL Success Payments Cobalt has no debt 2/3/ Restricted and Unrestricted Cash Feb 2 Follow-on Offering Proceeds 202E-203E Program Cash Expenditures (2) 2/3/203E Remaining Restricted and Unrestricted Cash 2/3/ unrestricted and restricted cash balances of $,98 million and $339 million respectively. Unrestricted cash includes cash, cash equivalents, short-term investments and longterm investments. Restricted cash includes Ensco Escrow and Cash Collateralized Angola LOCs 2 GOM expenditures are net of TOTAL Carry 3 Comprised of general & administrative costs 2

22 Turning Our 2005 Vision into Shareholder Value Cobalt has an extraordinary portfolio of significant exploration assets with discoveries in both Angola and the Gulf of Mexico We are focused on the drill bit execution of our West Africa and Gulf of Mexico prospects with numerous potential catalytic events over the next 2-24 months We believe that our portfolio has the potential to provide extraordinary shareholder value through the discovery, appraisal, development and production of our existing assets 22