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 10% today after Anadarko Petroleum (APC) announced an oil discovery.
So what: The oil field is in the Gulf of Mexico and was called a "potentially giant project" by Anadarko's head of exploration. Cobalt owns 20% of the field, so it will see a big impact if the project is as big as initial testing suggests.
Now what: Analysts are saying this is the largest discovery in the Gulf of Mexico and may be twice as big as previous estimates. The well is 6 miles deep, and we're still quite a way from generating significant revenue for any company involved. Still, this is major progress for Cobalt, and I think the stock can continue to run higher as it gets closer to generating revenue from this huge project.
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