Cobalt strikes Oil Again! This time in the Gulf of Mexico.
Cobalt is an aggressive offshore oil explorer and has amassed a significant portfolio of deepwater prospects. The Company is currently focused primarily on the Gulf of Mexico and offshore Africa. The huge run the stock made earlier this year came after a significant discovery in Angola, which tested at 7,400 boe/day. Now in center stage is Cobalt’s North Platte complex with over six exploration prospects and 2 billion barrels of resource potential. The first North Platte well is targeting 400 million to 850 million barrels.
On December 5, 2012 Cobalt announced a significant oil discovery at its North Platte prospect on Garden Banks Block 959 in the deepwater Gulf of Mexico. Based on extensive wire line evaluation, the discovery well encountered several hundred feet of net oil pay in multiple Inboard Lower Tertiary sands.
Joseph H. Bryant, CEO of CIE said "Today's announcement is another important milestone for Cobalt, "Cobalt's founding vision included making significant operated discoveries in multiple world-class deepwater oil basins. Coupled with our previous announcements in Angola, Cobalt has demonstrated it has the technical and operational skills to deliver on our promises."
The prospect is located in about 4,400 feet of water and was drilled to a total depth of about 34,500 feet. Cobalt first attempted to drill the prospect in May 2010, and had a rig on the well location when federal officials put a drilling moratorium in place after the 2010 Gulf Coast oil spill, requiring Cobalt to move the rig off the well location. Cobalt is North Platte's operator and has a 60 percent working interest in the prospect. Total E&P USA Inc. holds the other 40 percent working interest.
Shares of CIE exploded on the news of the Discovery in the Gulf of Mexico and in a highly positive technical indicator the stock held its gains after the press release and has continue to move up from there. CIE has recently made an important technical breakout over its $25 resistance level. CIE has a history of highly explosive moves and looks to be making another one here.
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Cobalt International Energy, Inc. (NYSE: CIE) was incorporated pursuant to the laws of the State of Delaware in August 2009 to become a holding company for Cobalt International Energy, L.P. The Partnership is a Delaware limited partnership formed on November 10, 2005, by funds affiliated with Goldman, Sachs & Co., Riverstone Holdings LLC and The Carlyle Group as well as members of the Partnership's management team, collectively constituting Class A limited partners. In 2006, funds affiliated with KERN Partners Ltd. and certain limited partners in such funds affiliated with KERN Partners Ltd, were admitted as Class A limited partners. In 2007, First Reserve Corporation and Four Winds Consulting were admitted as Class A limited partners.
The test of Cobalt’s business model is taking place today at the frontiers of oil exploration. In the 2007 and 2008 U.S. Gulf of Mexico lease sales, Cobalt captured a substantial and highly prospective acreage position, locking up a 10-year controlling position in high potential deepwater, sub-salt exploration plays in the ‘heart’ of the U.S. Gulf of Mexico’s deepwater Miocene and inboard Lower Tertiary trends. Cobalt has spent more than $600 million to build this portfolio of opportunity. In only three years Cobalt established itself as major player in the deepwater U.S. Gulf of Mexico.
Cobalt is also an early entrant in offshore West Africa’s highly potential and enormous pre-salt opportunity through the focused capture of a significant acreage position in Gabon and Angola. Offshore West Africa is an area where Cobalt team members have vast experience in hydrocarbon exploration, development and production.