Why Cobalt International's Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Cobalt International Energy (NYSE: CIE  ) jumped 18% today after reporting a major oil discovery.

So what: The company said it hit a "significant" oil discovery in its North Platte prospect in the Gulf of Mexico. Details are sparse at this point, but the company said early data is "in line with predrill estimates of net pay".  

Now what: This is a huge development for Cobalt, which also discovered deepwater oil off the coast of Angola. Total (NYSE: TOT  ) has a 40% working interest in this prospect, but Cobalt owns the rest, and this will hopefully bring the company closer to earning significant revenue. The stock is still a risk until the company begins producing consistent earnings, but this discovery, coupled with Angola, gives the stock huge upside going forward.

Interested in more info on Cobalt International Energy? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2141136, ~/Articles/ArticleHandler.aspx, 12/18/2014 2:28:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement