Cobalt (CIE) North Platte Discovery Derisks Multiple Prospects

December 5, 2012 3:06 PM EST Send to a Friend
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This morning Cobalt International Energy, Inc. (NYSE: CIE) announced a significant oil discovery at its North Platte prospect in the Gulf of Mexico. Analysts at Goldman Sachs said they view the announcement as a material positive.

"The North Platte success derisks multiple prospects in the higherrisk/higher reward Lower Tertiary area proximate to the discovery by confirming presence of a quality reservoir and corroborates CIE's optimism on its Inboard Lower Tertiary concept," said Brian Singer.

"Assuming 100% probability of success on CIE's 400-850 MMBOE resource estimate would imply about $5-$12/share of upside to our net asset value/target. CIE still needs to do more drilling to define the ultimate size, and as such we do not expect shares to immediately reflect 100% prospectivity," added Singer.

Goldman Sachs has a Buy rating on Cobalt International Energy (NYSE: CIE) with a price target of $29.00.

For an analyst ratings summary and ratings history on Cobalt International Energy click here. For more ratings news on Cobalt International Energy click here.

Shares of Cobalt International Energy closed at $23.78 yesterday.

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