Cobalt International Energy Auction

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Following the bankruptcy filing of Cobalt International Energy, a number of investors are trying to cash in on the company’s assets. Among the bidders are Total (NYSE: TOT), Statoil, W&T Offshore and Navitas. The assets are in the deepwater Gulf of Mexico. They represent a strategic priority and material growth opportunity for all of the bidders. In addition, many of the assets are pre-development, and some of them require ultra-high-pressure/high-temperature technology.

After receiving multiple bids totaling $577 million for its U.S. Gulf of Mexico assets, Cobalt International Energy Inc. accepted the bids. However, the company is in financial trouble and filed for Chapter 11 bankruptcy last December. It was having trouble selling its assets due to a lingering arbitration dispute with Angola’s Sonangol.

A majority of votes must be cast for the plan to pass. Shareholders should also consider the long-term incentive plan of the company. The plan’s objective is to motivate and reward employees who contribute to the company’s success. The plan is subject to the requirements of the Securities Exchange Act of 1934.

The company’s assets include oil fields in Gabon, Angola and the Gulf of Mexico. However, the company has deferred several multimillion dollar interest payments. This has forced the 12-year-old deep-water drilling company to slow down on drilling. Currently, the company is producing oil from only one field.

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