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
Exxon Mobil Green-lights $12.7B Whiptail Project Offshore Guyana
2024-04-12 - Exxon Mobil’s sixth development in the Stabroek Block will add 250,000 bbl/d capacity when it starts production in 2027.
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
Pitts: Heavyweight Battle Brewing Between US Supermajors in South America
2024-04-09 - Exxon Mobil took the first swing in defense of its right of first refusal for Hess' interest in Guyana's Stabroek Block, but Chevron isn't backing down.
Exxon Mobil Guyana Awards Two Contracts for its Whiptail Project
2024-04-16 - Exxon Mobil Guyana awarded Strohm and TechnipFMC with contracts for its Whiptail Project located offshore in Guyana’s Stabroek Block.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.