Cobalt Announces 2nd Quarter 2008 Financial 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 second quarter financial
statements and related Management Discussion and Analysis for the six months
ended June 30, 2008. These filings are available for review at www.sedar.com.


Activity Update & Outlook

The Company's activity during the second quarter was focused on completing a
second acquisition at Woking, Alberta and on an associated equity financing.
Subsequent to the quarter, Cobalt recompleted one suspended oil well at its
Woking, Alberta property. Preliminary testing of the well has met expectations,
producing approximately 15-20 bbl/d of light sweet crude. Permanent production
equipment is currently being installed. Cobalt holds a 95% working interest in
this well until a 300% penalty is paid out, and retains a 32% working interest
afterward. The Company has identified up to four additional recompletion
candidates which, with successful operations and current crude oil prices, would
provide an attractive production base with high netback cash flow. Cobalt is
striving to capture additional value in the Woking property through a possible
acquisition of additional working interest or through a farm-in or equivalent
arrangement.


In the East Central Alberta core area, Cobalt drilled one exploration well at
100% working interest which was abandoned, plus acquired 640 acres of
undeveloped land at 100% working interest. Cobalt anticipates operating the
drilling of one exploration well at 100% working interest prior to year end on
this newly acquired land.


During the second half of the year, Cobalt's business plan will turn primarily
to exploration drilling, focusing on natural gas targets in our two core areas
of the Peace River Arch and in East Central Alberta. The Company anticipates a
drilling program of up to two (1.5 net) wells in the Peace River Arch area and
one (1.0 net) well in the East Central Alberta area which would expend
sufficient capital to fulfill our remaining flow-through obligation. To finance
our drilling program and any potential acquisitions, the Company expects to
generate funds through a combination of internal cash flow, debt facilities and
new equity.


Cobalt participates 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.


Reader Advisory - This news release contains certain forward-looking statements,
which include assumptions with respect to completion of an acquisition, funds
from financing, commodity prices, success of operations, 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.