Cobalt International Energy, Inc. (CIE - Free Report) confirmed that it has successfully tested its previously announced Lontra #1 pre-salt discovery well in Block 20, offshore Angola. The company noted that the discovery well encountered both a high liquids content gas interval and an oil interval. Cobalt is partnered by BP plc (BP - Free Report) and Sonangol Pesquisa e Producao, S.A., with 30% working interest each, in the block.
During the recently completed drill stem test, the Lontra well produced at a stabilized flow rate of 2,500 barrels per day of condensate and 39 million cubic feet per day of gas. The flow rates were significantly restricted by the surface test facilities on the semi-submersible Catarina drilling rig. The company also noted that further appraisal drilling will be required to determine the ultimate size of the Lontra field.
The semi-submersible drilling rig is tied to the company with a three-year contract since first quarter 2013. This gives it ample time to explore other potential areas in the region.
Cobalt International Energy is deeply focusing on West Africa. Apart from Lontra, the company’s other oil-focused exploration targets in the area include Blocks 9, 20 and 21 offshore Angola, and the Diaba Block offshore Gabon.
The company also has a significant presence in the U.S. Gulf of Mexico region. Its exploration efforts in that region target subsalt Miocene and Inboard Lower Tertiary horizons in the deepwater U.S. Gulf of Mexico. Drilling efforts by the company in that region have resulted in the North Platte, Heidelberg and Shenandoah oil discoveries.
Formed in 2005, Cobalt International Energy, Inc. operates through its subsidiary Cobalt International Energy, L.P. The subsidiary is an independent oil focused exploration and production company with a prospective portfolio in the deepwater U.S. Gulf of Mexico and offshore West Africa. All of the Houston, Texas based company's prospects are oil-focused.
Cobalt International Energy holds a Zacks Rank #3 (short-term Hold rating). However, there are better-ranked stocks in the oil and gas sector such as SM Energy Company (SM - Free Report) and Matador Resources Company (MTDR - Free Report) . All these stocks hold a Zacks Rank #1 (Strong Buy).