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 Stone Energy Corporation (NYSE:SGY) jumped 10% today after announcing drilling results.

So what: The Cardona South well at Mississippi Canyon 29 resulted in 275 feet of net oil pay in three sections. Management expects to accelerate its development program, which could double the company's deep-water oil production.  

Now what: The big risk in oil drilling, particularly in ultra-deepwater, is that wells will come up dry or short of expectations. That isn't the case for Stone Energy today, and with a 65% working interest in the Cardona South well the economic impact should be high. Shares already trade at 24 times next year's estimates, but if revenue doubles expect that value to look very cheap.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.