The transaction, which has an effective date of January 1, 2015, is subject to Angolan government approvals, which are expected before the end of the year.
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Angola’s national oil company Sonagol and Houston-based Cobalt worldwide Energy have signed a sale and purchase agreement allowing Sonangol to acquire all of Cobalt’s 40% participating interest in Blocks 21/09 and 20/11 offshore Angola for US$1.75 billion.
In a presentation to analysts several weeks ago, a company official said the group aimed to concentrate its oil exploitation activities in the Gulf of Mexico, reports the Bloomberg financial agency. Notwithstanding Cobalt’s continuing as operator for an interim period, all costs going forward will be borne by Sonangol.
A similar sentiment was echoed from the management of Sonangol.
“We are proud of the tremendous success that our partnership with Sonangol has achieved in opening the pre-salt play in the Kwanza Basin with five significant discoveries and a deep portfolio of exploration prospects”, said Joseph H. Bryant, Cobalt’s Chairman and Chief Executive Officer.
Last February, Cobalt announced it had discovered the presence of light oil and condensate at its Orca-1 deepwater exploratory well in block 20. NYSE:CIE is an independent exploration and production company with operations in the deepwater the United States Gulf of Mexico and offshore Angola and Gabon in West Africa.
Cobalt worldwide Energy used the Petroserv SSV Catarina Rig to drill the Lontra #1 discovery well off the coast of Angola.
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Cobalt’s shares fell as much as 3.5 percent in early trade on Monday, before reversing course to trade up 0.5 percent at $7.28, making it one of the few stocks across the market in positive territory. The aggregate holdings have grown by 9.86% in comparison with the previous quarter, though the number of investors has declined by four. Cobalt’s share price rose 10% yesterday, the only “green” oil and gas ticker on my Bloomberg screen.
