Cobalt International Energy, Inc. (NYSE:CIE) reported that net loss from continuing operations in 2Q2016 came at $200.4 million compared to $53.4 million in the same period, a year earlier. The jump in loss can be attributed to the write off related with Goodfellow, totaling nearly $149.9 million.
The management speaks
Tim Cutt, the CEO of Cobalt International, reported that it is evident that Cobalt is indeed a growing firm with a team of experienced staff and leaders, and possess exceptional assets. The company face considerable near-term challenges, but he look forward to associating with the Board and executive team to make appropriate decisions to deliver increased value for shareholders.
Cutt added that in the near-term, he has three main priorities, which should lead company to achieve success. The first priority is to exercise the alternatives available to company pertaining the sale of Angola assets. Next they should address liquidity position, and third priority is to define a clear path forward to shift discovered resource into development process and then into production.
The details
The CEO of Cobalt said that as mentioned earlier his first priority is working through the alternatives related with the sale of Angola assets. He recently met Isabel dos Santos, the Chairman of Sonangol. As it is known, the purchase and sales deal the company finalized with Sonangol in last August contemplate that these deals will close by August 22, 2016. In case, the deals are not closed, the contract would automatically terminate, resulting in the return of assets to the company.
During a recently held meeting, the company made a consensus with Sonangol on marketing of 40% working stake in Angola Blocks 20 and 21. The CEO added that while they prefer the deal with Sonangol to complete, he is delighted that they can re-market these assets to third-parties.
