Cobalt International Energy Inc. (NYSE: CIE) said March 14 that 2017 capex will be about $275 million, primarily for operated activities at North Platte and non-operated activities at Shenandoah, Anchor and Heidelberg and excluding general and administrative expenses and interest expense.
Total 2017 cash outlays will likely be between $550 million and $650 million; net revenue will likely be about $50 million, leaving Cobalt with between $350 million and $450 million in year-end cash balance, excluding any Sonangol receipts or payments.
On Dec. 31, 2016, there was about $956.5 million in cash, cash equivalents, investments and restricted cash, the company said. About $840 million was the total cash spend for 2016. Cobalt also gave an operational update. In the deepwater Gulf of Mexico (GoM), its North Platte #4 appraisal well encountered approximatelybout 650 ft of net oil pay with initial results indicating high quality Inboard Lower Tertiary Wilcox reservoirs on the eastern flank of the field. Appraisal operations continue at North Platte, where Cobalt has recently completed the drilling of the North Platte #4 sidetrack well to further analyze the extent of the eastern flank.
Cobalt said that more than 500 million barrels of oil equivalent per day of recoverable hydrocarbons could come from North Platte. Cobalt, as operator, owns a 60% working interest in North Platte, and Total E&P USA Inc. owns the remaining 40% working interest.
Appraisal operations also continued at Anchor, where the Anchor #4 appraisal well was drilled to total depth and encountered about 800 ft of net oil pay in multiple Inboard Lower Tertiary reservoirs. Cobalt owns a 20% non-operated working interest in the Anchor discovery unit and owns full working interest in two leases on the south flank of Anchor, but outside of the unit.
The Anchor reservoir extends onto these leases, and Cobalt has engaged with the operator and the Bureau of Safety and Environmental Enforcement regarding options to bring these two leases into the Anchor unit, the press release said.
Drilling operations commenced in late 2016 on the Shenandoah #6 appraisal well on the eastern flank of the Shenandoah Field. The well was drilled to total depth and encountered wet Wilcox sands. The well is currently being sidetracked to locate the oil-water contacts. Cobalt owns a 20% non-operated working interest in Shenandoah.
Houston-based Cobalt also reported that it recorded an impairment regarding Angola operations.
Recommended Reading
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
TotalEnergies to Acquire Remaining 50% of SapuraOMV
2024-04-22 - TotalEnergies is acquiring the remaining 50% interest of upstream gas operator SapuraOMV, bringing the French company's tab to more than $1.4 billion.
TotalEnergies Cements Oman Partnership with Marsa LNG Project
2024-04-22 - Marsa LNG is expected to start production by first quarter 2028 with TotalEnergies holding 80% interest in the project and Oman National Oil Co. holding 20%.
Is Double Eagle IV the Most Coveted PE-backed Permian E&P Left?
2024-04-22 - Double Eagle IV is quietly adding leases and drilling new oil wells in core parts of the Midland Basin. After a historic run of corporate consolidation, is it the most attractive private equity-backed E&P still standing in the Permian Basin?