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What: Shares of Cobalt International Energy (NYSE: CIE ) have catapulted higher today, up by as much as a whopping 53%, after the company announced positive news regarding one of its oil wells.
So what: The company's Cameia-1 well, which is located off the coast of Angola, yielded positive test drilling results and the company now expects that it will be able to produce up to 20,000 barrels per day. The well is just the first of many that the company will drill in the region.
Now what: Now that Cameia-1 has proven so fruitful, Cobalt plans on drilling even deeper wells. Cameia-1 was a relatively shallow well, so going deeper with additional wells could pay off nicely and boost production significantly. Citigroup rates Cobalt a buy with a $26 price target, which shares have promptly shot past today. Howard Weil upgraded shares to outperform on the news, giving it a $41 price target.
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