Cobalt Closes Property Acquisition

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

Cobalt Energy Ltd. (TSX VENTURE:CB.A) (TSX VENTURE:CB.B) ("Cobalt" or the
"Company") is pleased to report that it has completed the property acquisition
previously announced on November 22, 2007 . After normal closing financial
adjustments, Cobalt paid approximately $320,000 in cash for producing assets and
undeveloped lands.


The acquisition establishes Cobalt's initial production of approximately 20
boe/d (70% light crude oil) at Woking Alberta, located within the Company's
primary core area of the Peace River Arch. The acquisition also provides an
estimated 16,000 boe Proven plus Probable reserves, and land holdings comprised
of 8,480 gross acres (3,600 net acres) with approximately 1,200 undeveloped net
acres.


Drilling Update

In December 2007, Cobalt drilled its first exploration well into the Triassic
formation at its Boundary Lake prospect located in the Peace River Arch at an
80% working interest. The well has been cased and the Company plans to evaluate
the well's potential over the coming weeks. A second well in this prospect is
expected to be drilled late in the first quarter 2008, at an 80% working
interest, targeting liquids rich natural gas reserves. To date, the Company has
evaluated approximately 80 km of trade and proprietary 2D seismic over its lands
to support the initial well locations.


Outlook

The Company's activity during 2008 will focus on fulfilling its flow-through
obligation of $5.3 million by drilling a portion of our current exploration
inventory and by conducting seismic programs in our core areas. The majority of
capital expenditures will be directed towards the Peace River Arch with drilling
at Boundary Lake, and well recompletions plus possible drilling at Woking.
Concurrently, we anticipate adding to our current undeveloped land position in
multi-zone regions of Alberta, and building our production base. Further
acquisitions are 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 completion of an acquisition, increase
to production and reserves 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.