Cobalt International Energy Shares Catapulted: What You Need to Know

Before you go, we thought you'd like these...
Before you go close icon

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 (NYS: CIE) have catapulted higher today, up by as much as a whopping 53%, after the company announced positive news regarding one of its oil wells.

So what: The company's Cameia-1 well, which is located off the coast of Angola, yielded positive test drilling results and the company now expects that it will be able to produce up to 20,000 barrels per day. The well is just the first of many that the company will drill in the region.

Now what: Now that Cameia-1 has proven so fruitful, Cobalt plans on drilling even deeper wells. Cameia-1 was a relatively shallow well, so going deeper with additional wells could pay off nicely and boost production significantly. Citigroup rates Cobalt a buy with a $26 price target, which shares have promptly shot past today. Howard Weil upgraded shares to outperform on the news, giving it a $41 price target.

Interested in more info on Cobalt International Energy? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners