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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.
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