Cobalt comes up dry in Gulf of Mexico well for the 2nd time in four months

|About: Cobalt International Energy... (CIE)|By:, SA News Editor

Cobalt Energy (CIE -8.9%) reveals its second failure in four months in the Gulf of Mexico, as its latest probe comes up dry.

CIE says it will plug and abandon its Aegean #1 exploratory well on Keathley Canyon Block 163 after drilling nearly 35K feet and failing to encounter commercial hydrocarbons; its Ardennes-1 well in the Gulf struck out in August.

Mizuho, which says the news shakes confidence in CIE's Gulf of Mexico model, cuts its price target to $28 from $30 (

CIE is the operator of Aegean and owns a 60% interest; Total (TOT +0.2%) owns 40%.