Cobalt Energy shares slide as no oil found in deepwater GoM Ardennes #1 well


Cobalt Energy shares slide as no oil found in deepwater GoM Ardennes #1 well


HOUSTON -- Cobalt International Energy has reported that it didn't find oil in a well in the Gulf of Mexico, though results at a West African well were more positive. Shares of the oil-and-gas exploration company were down 12% to $25.75 in premarket trading. Through Friday, the stock was up 20% this year.

The deepwater Gulf of Mexico-located Ardennes #1 exploratory well, of which Cobalt owns a 42% interest, was found not to have any hydrocarbons. But the Diaman #1B offshore well, located in 5,673 ft of water off Gabon and more than 60 miles from the nearest other pre-salt commercial discovery, has confirmed a working petroleum system, with hydrocarbons that are thought to be gas with condensate.

Cobalt, which owns about a 21% working interest in the well, said the well would be temporarily abandoned pending further analysis. Marathon Oil also holds about a 21% interest in the well, with Total Gabon owning about 43% and the Gabonese Republic owning 15%.

Cobalt also said it had reached a drilling contract for Rowan Reliance, a new ultra-deepwater drilling rig, which would fit the company's needs in the Gulf of Mexico. Cobalt focuses on exploration, development and production in deepwater U.S. Gulf of Mexico and offshore Angola and Gabon.

Dow Jones Newswires

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