Financially struggling Cobalt International Energy said Thursday it filed for Chapter 11 bankruptcy protection and will sell off the company for parts.
Houston-based Cobalt, which has largely treaded water since selling off its offshore Angolan acreage two years ago, finally decided to call it quits. Cobalt’s remaining assets primarily reside in the Gulf of Mexico and through stake in Gabon acreage offshore of West Africa.
Cobalt said the bankruptcy process will help it continue to operate financially as it prepares to sell off its assets.
Cobalt had primarily focused on Angola for years, but financial troubles and issues with the Angolan government led it to unload those assets and use the proceeds to refocus the company. But low oil prices continued for awhile afterwards and the company never regained its footing.
Last year, Cobalt cut jobs and reduced its headcount from more than 350 workers to fewer than 150. Cobalt’s stock has traded for less than $1 a share for most of this year.
This first appeared on the Houston Chronicle – an Energy Voice content partner. For more click here.