Cobalt International Energy Inc. has a market cap of $5.58 billion; its shares were traded at around $15.66 . Hedge Fund Gurus that owns CIE: Steven Cohen of SAC Capital Advisors, Louis Moore Bacon of Moore Capital Management, LP. Mutual Fund and Other Gurus that owns CIE: HOTCHKIS & WILEY of Hotchkis & Wliey Capital Management LLC, Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:Ensco 8503 Drilling Rig. The Ensco 8503 drilling rig, which we have recently accepted, has departed the U.S. Gulf of Mexico for French Guiana on an approximate five month direct sublet from its owner, Ensco Offshore Company ("Ensco"), to a subsidiary of Tullow Oil plc ("Tullow"), inclusive of mobilization and de-mobilization. We will only be obligated to pay certain amortized costs associated with certain rig upgrades during the term of the sublet. Upon return of the Ensco 8503 drilling rig to us, a special reduced base standby rate of $210,000 per day will become payable by us under the special standby rate and potential suspension agreement (the "Standby Agreement") that we executed with Ensco on November 9, 2010. This special reduced standby rate will be payable until early 2012 or, if earlier, when we are able to resume drilling operations or elect to begin the two year term of the base drilling contract. The special reduced standby rate will be paid directly from the $186 million that was placed in an escrow account established in December 2009 as a guarantee of our performance of the base drilling contract.
We entered into the base drilling contract related to the Ensco 8503 drilling rig with Ensco on May 8, 2008. This contract has a two year term, which would have commenced upon delivery and acceptance had we not entered into the Standby Agreement and which may be extended by us for one or two additional years. This two year term is not affected by the Standby Agreement or the sublet to Tullow and such term is expected to commence at the conclusion of the term of the Standby Agreement at the agreed base operating rate of $510,000 per day, subject to adjustment, which aggregates to approximately $372 million over the two years of the base contract.
Ocean Confidence Drilling Rig. The Ocean Confidence drilling rig has been recently assigned to Total Angola to drill one well offshore Angola. We expect the Ocean Confidence to be returned to us in May 2011 to allow us to commence our initial two well pre-salt exploration program on Block 21 offshore Angola. Under the drilling contract we executed with an affiliate of Diamond Offshore Company on November 8, 2010, the Ocean Confidence has a base operating rate of $360,000 per day. In addition to the one-well assignment we made to Total Angola, we have the right under this contract to use the Ocean Confidence for two wells and we have an option to use it for one additional well at a base operating rate not to exceed $375,000 per day.
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