Update on West Africa and Gulf of Mexico Drilling Programs

Update on West Africa and Gulf of Mexico Drilling Programs

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 (1) 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

Active Transformational Drilling Campaign Cobalt s active drilling program in two of the world s most prospective oil prone basins will expose our shareholders to several billion barrels of exploration resource. Key ongoing events: West Africa Pre-salt: Cameia-1 Deepwater Gulf of Mexico: Ligurian and Heidelberg appraisal drilling 5th Largest Leaseholder in Deepwater GOM (~1.3 MM gross acres) and leading position in West Africa Pre-salt (~6 MM gross acres) Cobalt is levered for success Multiple potential catalytic events over the next 18 months Operating control - thus able to prioritize prospects to drill and influence timing Very large prospects - material impact to shareholders Balance sheet in place to execute a multi-year, multi-prospect program Operating organization in place with proven and experienced team to develop discoveries through to production 3

Cameia-1 Discovers Oil Cobalt Leases Pre-salt Discoveries Pre-salt oil shows Gabon Baleia 1996 Discovery Cobalt Cameia-1 2011 Discovery Bicuar-1 20 21 Maersk Azul-1 2011 Discovery 9 Cameia-1 discovery confirms geologic model: Cobalt s first Pre-salt discovery offshore West Africa Very encouraging results Significant oil column High quality volatile oil recovered through MDT s Net pay estimates better than expected No oil/water contact High quality carbonate reservoir Angola 0 50 100 Kilometers Quantitative results to be announced following production test 4

Cameia-1 Operational Status Extensive logging program completed Production liner has been run Experienced mechanical difficulty in setting the liner hanger A production test will be completed once mechanical issues are resolved Results will be provided post the production test Status as of January 9, 2012 5

Angola s Emerging Pre-salt Play Cobalt Leases Industry Licenses Pre-salt Discoveries Pre-salt oil shows Gabon Baleia 1996 Discovery Cobalt Cameia-1 2011 Discovery Angola Bicuar-1 36 37 35 Discovery 38 39 40 20 19 26 21 Maersk Azul-1 2011 22 25 8 9 23 24 0 50 100 Kilometers The Cameia-1 and Azul-1 discoveries confirmed a working Pre-salt petroleum system and significantly de-risks the play Now rapidly moving from play risk to prospect specific risk Angola s 2011 Pre-salt License Round successfully completed Broad industry participation by super-majors Cobalt is the operator of Block 20, the most heavily contested block Cobalt has the leading position in Angola Pre-salt Operator of three Angola blocks with a 40% working interest in each block Discoveries within or offsetting each block Active exploration drilling program in place for 2012-2013 in each block Source: The Oil Daily, company press releases 6

Cobalt s Pre-salt Prospect Inventory in Gabon - Characterized by Large Pre-salt Structures Gabon 0 50 In close proximity to large Pre-salt onshore field and offshore discovery Angola Rabi-Kounga 940 MMBOE* Kilometers Gabon Rabi-Kounga field (940 MMBOE)* Maruba #2 (1982) Pre-salt oil discovery Large 6,000 km2 3D seismic survey acquired in 2010 Diaba Golden Nugget Cannery Lady Luck Osterea Western Red Rock Tahoe Longhorn Sierra Sahara South Point Paris Mahoney Rainbow Barton New Frontier Pioneer Wendover Boulder Elf Maruba #2 1982 discovery 1,250 BOPD in Pre-salt TOTAL Gabon 63.75% (Operator) Cobalt 21.25% Others 15% Cobalt Leases Pre-salt Discoveries Cobalt Prospects Pre-salt oil shows 3D Coverage 3D processing continues to confirm presence of Pre-salt structures Gabon economics per barrel roughly 3x Angola TOTAL Gabon and Cobalt anticipate drilling initial Pre-salt well in late 2012 or early 2013 Cobalt s Kwanza Basin success increases confidence in Gabon * Volumes represent proved plus probable reserves; Source: Wood Mackenzie. 7

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* (includes Shenandoah discovery) Over 2 billion BOE net unrisked prospective resources** Miocene Trend Key leaseholder in established GOM play 25 identified Cobalt prospects* (includes Ligurian/Heidelberg discovery) Over 1 billion BOE net unrisked prospective resources** North Platte Rum Ramsey Racer Ligurian 0 Miles 40 Ardennes Shenandoah Heidelberg Cobalt Prospects Miocene Inboard Lower Tertiary Currently Drilling Cobalt Acreage Upcoming Cobalt Wells Aegean Cobalt Appraisal drilling in 2011-12 * 5 prospects have Miocene and Lower Tertiary dual objectives. ** Per independent assessment by DeGolyer and MacNaughton (February 2011) 8

Ligurian / Heidelberg Appraisal of Cobalt's Initial Discovery in Progress Tonga West Ligurian-2 Ligurian / Heidelberg Discovery Discovery well (2009) encountered more than 200 of net oil pay Cobalt Acreage Currently Drilling Cobalt Discovery Cobalt Currently Upcoming Drilling Well SW 0 2 Miles Ligurian-1 Cobalt 45% (Operator) TOTAL 30% Sonangol 25% Ligurian-2 Heidelberg-1 Salt Heidelberg-1 Heidelberg Appraisal Anadarko 44.25% (Operator) Cobalt 9.375% Others 46.375% Tonga West NE Ligurian-2 (Cobalt-operated appraisal of Heidelberg) Well spud January 1, 2012 Water depth: 5,900, Proposed TD: 31,800 Mapped using proprietarily processed, pre-stack, depth-migrated wide-azimuth 3-D seismic Will appraise northern flank of the structure and test deeper Miocene formation Expect results by end of 2Q 2012 Salt Salt Heidelberg well (Partner-operated) Water depth:5,260 ;Proposed TD: 32,500 Will appraise southern flank of the structure and test deeper Miocene formation Expect results by end of 1Q 2012 Miocene 9

North Platte Cobalt s First Operated Inboard Lower Tertiary Prospect Will spud following Ligurian-2 using Ensco 8503 Prospect characterization Gross unrisked resources: 400 850 MMBOE* Cobalt 60% working interest Williams Fork Baffin Bay North Platte Latvian 20% cost interest up to $150 MM well cost South Platte Key uncertainty - reservoir quality D&M probability of success ~50%* 0 5 Miles Well parameters 160 to 200 days to drill Proposed well depth: 35,000 feet Success at North Platte should de-risk offsetting prospects * Per independent assessment by DeGolyer and MacNaughton (February 2011) (mean high resource range) 10

Catalyst Rich 2011-12 Drilling Program Angola Cameia - Preparing to production test Bicuar - follows Cameia Block 21 appraisal and/or Block 9 exploration - 2H 2012 Gabon Diaba exploration* - 4Q 2012/1Q 2013 Gulf of Mexico Ligurian - Drilling Heidelberg appraisal* - Drilling North Platte - follows Ligurian Shenandoah appraisal* - mid 2012 Rum Ramsey exploration* - mid 2012 * Partner-operated well 11

We Have the Financial Capacity to Execute Our Planned Multi-year Exploration Program Sources Post Block 20 Closing (1) ~$1.7 to $1.9 Billion 2012-13E Exploration Program Expenditures of $700 to $900 MM TOTAL Carry (up to $375 MM) Up to $180 MM success-based ~$195 MM existing Key Components ($MM, Net) West Africa Drilling ~$175-200 Restricted Cash ~$550 MM GOM Drilling (2) ~$300-350 Other (3) ~$250-300 Unrestricted Cash and Equivalents ~$940MM 2012E Expenditures Range $500 to $550 Million (4) 1) Estimated September 30, 2011 (unaudited) after giving effect to estimated 2012 Block 20 closing items 2) All GOM expenditures are net of TOTAL Carry 3) Other expenditures exclude 2012 Block 20 Closing costs 4) 2012E expenditures include $123MM social bonus for Block 20 12

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 have the financial capacity to execute our planned multi-year exploration program 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 18 months We believe that our portfolio has the potential to provide extraordinary shareholder leverage through the discovery, appraisal, development and production of our existing assets 13

Appendix 14

Cobalt 2011 11 Billion Barrels of Net Unrisked Potential Gulf of Mexico Miocene and Lower Tertiary resources Over 225 lease blocks, ~75% operated Over 45 defined prospects* Over 100 million BOE net discovered in two fields* 3.3 billion BOE of net unrisked mean prospective resources* Deepwater Gulf of Mexico Sub-salt Potential reservoirs West Africa Pre-salt analogs to Brazil and shallow Albian resources 3 Cobalt-operated Angola blocks 1 Gabon block Over 60 Pre-salt prospects* 7.6 billion BOE of net unrisked mean prospective resources* Offshore Angola Pre-salt Potential reservoirs Salt Similar exploration, appraisal, development and production technology required Cobalt s Focus Area * Per independent assessment by DeGolyer and MacNaughton (February 2011) Basement 15

A Rich History That Continues to Deliver Results Completed Underway Planned Discovered Shenandoah and Heidelberg Created alliance with TOTAL in GOM Resume drilling GOM prospect inventory Completed $500 MM Follow-on offering Continue GOM exploration drilling Appraise and develop discoveries Established GOM lease position through lease sales Raised $1 Bn in IPO Formed with $600 MM private equity Awarded Angola Blocks 9 and 21 Drill Diaba prospects; Drill other Angola prospects (Lontra, Block 21, Block 9) Obtained rights to three Angola offshore blocks Traded assets for interest in Gabon-Diaba block Awarded Angola Block 20 Drill first West Africa Pre-salt prospects (Cameia and Bicuar) 16

Brazil and West Africa Pre-salt - A Single Geologic History and Setting Paleomap Project Scotese (2007) Recôncavo Basin 2.6 BBO from equiv. Pre-salt section Brazil Atlantic Rift Congo Basin Lower Congo Basin Gabon Congo DRC ~120 million years ago, the Whale Park Complex (Campos Basin, Brazil) and Blocks 20 and 21 (Kwanza Basin, Angola) existed in the same depositional basin and were only 50-100 miles apart Our analysis confirms that the Campos and Kwanza Basins share similar Pre-salt histories and characteristics 0 100 Kilometers 200 Whale Park Pre-salt Complex Tupi Complex Santos Basin A Campos Basin A Kwanza Basin Angola Brazil B Campos Basin We believe the exploration history in the Campos Basin serves as the appropriate analog for Angola s Kwanza Basin Kwanza Basin Angola B Cobalt Leases Pre-salt Discoveries South America Sag Africa Syn-Rift Section 17

Location of Cobalt s Kwanza Basin Blocks to Campos Basin Discoveries at Time of Deposition Whale Park Pre-salt Complex (2.5-3.5 BBOE) Jubarte-1 well 14,500 BOPD When originally drilled - Assumed dry - Not flow tested Brazil Cachalote Franca Atlantic Rift Lontra Baleia-1A (1996) ~120m Pre-salt oil column discovered Not flow tested Pirambu Azul B20 Cobalt Cameia-1 Discovery Well High quality oil, preparing to test Caxareu Itaipu Wahoo B21 Bicuar 0 50 100 Kilometers Cobalt Leases Pre-salt Discoveries Key Cobalt Prospects Pre-salt oil shows Campos Basin Azul-1 Discovery Kwanza Basin B9 Denden-1 (1983) ~ 800 BOPD DST Angola Sources: IHS, Reuters 18

Significant Volumes of Resources Exposed to the Drill Bit DeGolyer & MacNaughton Feb. 2011 Assessment Resource Exposure From 2011-2013 Planned Drilling 3P Reserves & Contingent Resources GOM (Net Mean, BBOE) 0.1 Net Unrisked Mean Resources ~ 8 BBOE Unrisked Prospective Resources GOM 3.3 Unrisked Prospective Resources West Africa 7.6* Total Unrisked 11.0* ~ 1 BBOE ~ 2 BBOE Total Risked 2.6* GOM West Africa Remaining Undrilled in Other Prospects * Includes Angola Block 20, award subject to execution of Production Sharing Agreement 19