IPO FILING: Cobalt International Energy (CIE)

September 4, 2009 by Douglas A. McIntyre

money-stack-imageCobalt International Energy Inc. has now filed to come public via an initial public offering.  While terms were not disclosed, it said it would sell up to $1.15 billion worth of common stock.  Shares will trade on the New York Stock Exchange under the ‘CIE’ stock ticker.

The independent oil exploration and production company has only been around since 2005, but it already has a portfolio of prospect inventory in deepwater U.S. Gulf of Mexico and in the waters off of West Africa. The proceeds will be used for operations in drilling and exploration.

Cobalt is not in revenue generation currently.  If its exploratory wells are successful, then it expects to begin commercial production out in 2012 to 2014 at the U.S. deepwater sites and in 2014 to 2016 in its African water locations.

Normally, it is easy to be leery or suspect of emerging oil companies with no operations at this point.  But the slate of underwriters is an impressive one: Credit Suisse, Goldman Sachs and J.P. Morgan.

JON C. OGG