Cobalt International Energy, Inc. Announces Agreement for the Early Termination of its Rowan Reliance Drillship Contract
September 15 2016 - 5:15PM
Business Wire
Cobalt International Energy, Inc. (“Cobalt”) (NYSE:CIE) today
announced that it has entered into an amendment to its drilling
contract (“Amendment”) with Rowan (UK) Reliance Limited, an
affiliate of Rowan Companies plc (“Rowan”), which provides for the
early termination of Cobalt’s long term drilling contract for the
Rowan Reliance drillship. The drilling contract was originally
scheduled to terminate on February 1, 2018 and the Amendment
provides for a contract termination date of March 31, 2017.
Additionally, per the Amendment, Cobalt will save 45% of the
contract value between the original termination date and the new
termination date, or approximately $80 million, and will pay to
Rowan the remainder of approximately $98 million. Cobalt also
commits to use Rowan as its exclusive provider of drilling services
for five years at market rates as determined by normal indices.
Timothy J. Cutt, Cobalt’s Chief Executive Officer, said, “We are
very glad to reach an agreement with Rowan that helps our balance
sheet in the near term and secures a strong relationship with Rowan
for the long term.”
About Cobalt
Cobalt 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.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934 — that is, statements related to future, not past,
events. Forward-looking statements are based on current
expectations and include any statement that does not directly
relate to a current or historical fact. In this context,
forward-looking statements often address Cobalt’s expected future
business and financial performance, and often contain words such as
“anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or
other similar words. These forward-looking statements involve
certain risks and uncertainties that ultimately may not prove to be
accurate. Actual results and future events could differ materially
from those anticipated in such statements. For further discussion
of risks and uncertainties, individuals should refer to Cobalt’s
SEC filings. Cobalt undertakes no obligation and does not intend to
update these forward-looking statements to reflect events or
circumstances occurring after this press release, other than as
required by law. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. All forward-looking statements are qualified
in their entirety by this cautionary statement.
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Cobalt International Energy, Inc.Investor Relations:Rob Cordray,
+1-713-579-9126Director, Investor RelationsorMedia Relations:Lynne
L. Hackedorn, +1-713-579-9115Vice President, Government and Public
Affairs