Cobalt Energy Ltd.
TSX VENTURE : CB.A
TSX VENTURE : CB.B

Cobalt Energy Ltd.

June 14, 2007 17:16 ET

Cobalt Files First Quarter Financial Statements & Outlines 2007 Activity

CALGARY, ALBERTA--(Marketwire - June 14, 2007) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES.

Cobalt Energy Ltd. ("Cobalt" or the "Company") (TSX VENTURE:CB.A) (TSX VENTURE:CB.B) is pleased to announce that it has filed with applicable Canadian securities regulatory authorities its unaudited first quarter financial statements and related Management Discussion and Analysis for the period ended March 31, 2007. These filings are available for review at www.sedar.com.

Highlights

- Cobalt is in the pre-production stage of a junior oil and gas exploration company. The Company is incurring start up costs as it prepares to execute the exploration and drilling program.

- General and administrative costs for the three months ended March 31, 2007 were $66,463 and consisted of rent, consulting and business taxes.

- Capital expenditures for the first quarter of 2007 were comprised of computer software and hardware in the amount of $3,773.

- At March 31, 2007, Cobalt had $843,308 in cash, working capital surplus of $861,048 and no outstanding bank debt.

Subsequent to the first quarter, Cobalt closed its initial public offering on May 29, 2007, raising gross proceeds of $5,288,000. A total of 5,288 units at a price of $1,000 per unit were sold, each unit consisting of 480 flow-through Class A Shares at a price of $0.25 per share and 88 flow-through Class B Shares at a price of $10 per share. Following the closing, Cobalt has 7,222,240 Class A Shares and 465,344 Class B Shares outstanding. The Class A Shares and Class B Shares of Cobalt commenced trading on the TSX Venture Exchange ("TSX-V") on June 8, 2007 under the trading symbols CB.A and CB.B, respectively.

Cobalt was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in western Canada. The Company's strategy is to build shareholder value through internally generated exploration and development drilling and through selective acquisitions.

Cobalt's initial areas of operational focus include the Peace River Arch ("Arch") and East Central Alberta. The Company anticipates activity during the remainder of the year to be directed primarily towards the Arch. To date, Cobalt has assembled 3,840 acres of undeveloped land in the Arch at 55-100% operated working interest through Crown land sales and farm-in agreements. Cobalt is currently active conducting seismic evaluations, pursuing additional undeveloped lands and expects to operate the drilling of 2 (1.1 net) exploration wells targeting liquids rich natural gas reserves prior to year end. In East Central Alberta, Cobalt plans to participate in Crown land sales during the third quarter at 75-100% working interest. Pending successful land acquisitions the Company will pursue exploration and/or development drilling prior to year end, targeting natural gas at shallow drilling depths. Also, Cobalt is actively pursuing potential property and corporate acquisitions.

Reader Advisory - This news release contains certain forward-looking statements, which include assumptions with respect to future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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