CB.B Cobalt Energy Ltd B

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Cobalt Energy Ltd. (TSX VENTURE:CB.A) (TSX VENTURE:CB.B) ("Cobalt" or the
"Company") 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 three months
ended March 31, 2008. These filings are available for review at www.sedar.com.


Highlights

- Successfully closed Cobalt's first property acquisition at Woking Alberta on
January 8th, 2008.


- Established the Company's initial production, averaging 19 boe/d (100% crude
oil) for the quarter.


- Capital expenditures amounted to $675,000, of which $287,000 was spent on the
Woking acquisition, $142,000 on equipping and well completions, $91,000 on
proprietary seismic, and $155,000 on capitalized general and administration
costs.


- Seismic activity included shooting nine kilometers of new proprietary seismic
in the Company's core area of East Central Alberta.


- At March 31, 2008, Cobalt had $2,058,823 in cash and short term deposits, a
working capital surplus of $1,881,952 and no outstanding bank debt.


- Subsequent to the quarter, Cobalt entered into an agreement to acquire from a
senior producer approximately 47 boe/d production (approximately 70% natural
gas) and an estimated 160,000 boe of reserves in exchange for $2,844,000 in
cash, subject to certain industry standard adjustments and provisions. This
acquisition is located at Woking Alberta, within the Company's Peace River Arch
core area. The acquisition also includes approximately 12,000 gross acres (6,200
net acres) of land and production facilities. Closing is expected to occur on or
about June 18, 2008.


- Subsequent to the quarter, Cobalt announced that it intends to complete a
private placement of up to 5,000,000 common Class A share subscription receipts
("Common Share Subscription Receipts") at an issue price of $0.40 per Common
Share Subscription Receipt and up to 1,000,000 flow-through Class A share
subscription receipts ("Flow-Through Subscription Receipts") at an issue price
of $0.45 per Flow-Through Subscription Receipt for gross proceeds of up to
$2,450,000 (the "Offering"). Closing of the Offering is expected to occur on or
about June 11, 2008.


Activity Update & Outlook

Over the past year, factors such as relatively low natural gas pricing, a new
royalty framework, and lack of interest in the equity marketplace have
constrained start-up companies to move cautiously within their capital
abilities. Cobalt has remained disciplined with its capital expenditures by
employing a balanced approach between acquisitions and exploration drilling.
Cobalt's plan over the past quarter has been to focus on low risk opportunities
to establish a production base and corresponding cash flow. We believe we
accomplished an important step towards that objective in the first quarter
through the property acquisition at Woking, Alberta. We also believe that we can
significantly enhance that position in the second quarter through the proposed
acquisition, again at Woking. The proposed acquisition will build on Cobalt's
production and land base by acquiring its partner's operated working interest in
the same assets. The immediate focus will be recompletions on several crude oil
wells which are anticipated to increase the acquired production levels. At
current oil prices, successful completion of these operations will provide an
attractive production base with a stream of high netback cash flow. The proposed
Woking acquisition also holds future potential for a waterflood project and
possible development well drilling.


During the second half of the year, Cobalt's business plan will turn primarily
to exploration drilling, focusing on natural gas in our two core areas of the
Peace River Arch and in East Central Alberta. Natural gas pricing has recently
strengthened, trending upwards and beginning to track the pricing of crude oil.
This creates a positive economic framework for natural gas exploration drilling
as the Company fulfills the remainder of its flow-through obligation.


At Boundary Lake, located in the Peace River Arch, the primary geological zone
of interest is the Triassic formation which contains liquids rich natural gas
reserves at moderate depths. Cobalt currently controls 3,840 acres of
undeveloped land and has evaluated over 80 km of seismic to identify potential
Triassic targets. Working with industry partners, Cobalt expects to participate
in the drilling of up to 3 (1.5 net) exploration wells prior to year end.


At East Central Alberta, a nine kilometer proprietary seismic program was shot
in the first quarter. This brings the Company's total seismic evaluation in the
region to 59 kilometers, primarily targeting natural gas in the Devonian
formation. Currently, Cobalt owns 3,200 acres of undeveloped land at 100%
working interest. In addition, the Company has negotiated a farm-in on 640 acres
of undeveloped land. Cobalt expects to operate the drilling of up to 3
exploration wells at 100% working interest prior to year end.


Concurrent with our recompletion projects and exploration drilling, we
anticipate adding to our undeveloped land position in multi-zone regions of
Alberta. 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.


The Company has filed the following reports for the year ended December 31,
2007, as required under National Instrument 51-101 "Standard of Disclosure for
Oil and Gas Activities": Form 51-101F1 "Statement of Reserves Data and Other Oil
and Gas Information" and Form 51-101F3 "Report of Management and Directors on
Oil and Gas Disclosure". These documents can be found for viewing by electronic
means on the System for Electronic Document and Analysis Retrieval at
www.sedar.com.


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

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