Cobalt Announces 3rd Quarter 2008 Results

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 third quarter financial
statements and related Management Discussion and Analysis for the three months
ended September 30, 2008. These filings are available for review at
www.sedar.com.


Highlights

- The Company's production averaged 17 boe/d (100% crude oil) for the quarter,
with an exit rate of approximately 24 boe/d. Current production is approximately
65 boe/d with an additional oil well to commence production by the end of
November.


- Capital expenditures amounted to $809,000, of which $93,000 was spent on land,
$520,000 on drilling, completions, and equipping, $33,000 on seismic, $125,000
on capitalized general and administration costs, and $38,000 on various other
costs.


- Successfully recompleted one oil well at Woking, and successfully recompleted
two additional oil wells subsequent to the quarter.


- Purchased 640 acres of undeveloped land at 100% working interest at Ranfurly
in East Central Alberta.


- At September 30, 2008, Cobalt had $1,241,812 in cash and short term deposits,
a working capital surplus of $409,363 and no outstanding bank debt.


- Subsequent to the quarter, Cobalt successfully closed a private placement for
aggregate gross proceeds of $1,005,525 (the "Offering"). The Company issued
500,000 Class A Common Shares ("Common Shares") at an issue price of $0.30 per
Common Share and 2,444,357 Flow-Through Class A Common Shares ("Flow-Through
Shares") at an issue price of $0.35 per Flow-Through Share. As a result, the
Company now has 10,166,597 Class A shares and 465,344 Class B shares
outstanding. Proceeds from the Offering will be used to fund Cobalt's ongoing
drilling and well recompletion operations in its core focus areas and for
qualifying flow-through expenditures.


- The Company also announced that it established a Development Demand Loan
credit facility with a Canadian chartered bank for $1,000,000. This credit
facility will be used to assist in the development capital expenditures
associated with the Woking oil well recompletions.


Activity Update & Outlook

Over the past quarter Cobalt remained active by balancing its capital
expenditures between low risk oil well recompletions, moderate risk exploration
drilling, and undeveloped land acquisitions. The Company continued to
successfully add new crude oil production at Woking, Alberta building Cobalt's
production base and corresponding cash flow. To date, Cobalt has carried out
three oil well recompletions at Woking with two of these wells contributing to
the Company's current production of 65 boe/d, with the third well expected to
commence production by the end of November. Up to three additional oil well
recompletions have been identified and the Company is considering recompletion
of one of these oil wells by year end. Drilling activity included one
exploration well (1.0 net) in East Central Alberta which was abandoned.


During the remainder of the year, Cobalt's business plan will turn primarily to
exploration drilling, as the Company fulfills the remainder of its flow-through
obligation. We anticipate participating in up to three exploration wells in
Alberta in the fourth quarter.


Acquisitions remain a part of Cobalt's growth strategy and the Company is
continually evaluating property or corporate acquisition opportunities which are
well-suited to its business plan.


Reader Advisory - This news release contains certain forward-looking statements,
which include assumptions with respect to availability of funds and use of
capital. 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. Such risks and uncertainties include, without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, tax treatment
(including royalties), inability to retain drilling rigs and other services,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States and overseas,
industry conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are interpreted
and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in foreign exchange or interest rates,
stock market volatility and market valuations of companies with respect to
announced transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. The Company's actual results, performance
or achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits, including the amount
of proceeds, that the Company will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements. 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. BOE or boe/d may be misleading particularly if used in isolation. A BOE
conversion of 6mcf:1bbl is based as an energy equivalency conversion method
primarily applicable at the burner tip and does not necessarily represent a
value equivalency at the well head.
Cobalt Energy Ltd (TSXV:CB.A)
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