Cobalt strikes out at Gulf of Mexico well, shares -11% premarket

Cobalt International Energy (CIE) -11.1% premarket after failing to find commercial oil or gas at its Ardennes-1 well in the Gulf of Mexico after reaching its objective total depth of ~36K feet.

CIE operates Ardennes-1 with a 42% interest, with ConocoPhillips (COP) holding 30% and Total (TOT) holding 28%.

CIE also says a well in which it partners with Total off Gabon had made a discovery.

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Comments (2)
  • Max Tybroski
    , contributor
    Comments (2) | Send Message
    The discovery today off of Gabon more than pays for the miss at Ardennes #1 - 1000's of times I would think.
    19 Aug 2013, 10:58 AM Reply Like
  • HappyG
    , contributor
    Comments (6) | Send Message
    Hi Max,
    I am (unfortunately) not that positive after studying the press release: It says they "found hydrocarbons" instead of "net pay" so unknown reservoir quality at this point.
    The good thing is, CIE paid 14% of Ardennes' $150mm+ costs vs. 42% WI, so market is maybe overreacting.
    I like the potential of CIE (see SA article: Cobalt International Energy: High-Impact Campaigns And Near-Term Catalysts, Jun 18, 2013) - Lontra-well is the key to CIE's performance in 2013 - my view.
    22 Aug 2013, 03:32 AM Reply Like
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