This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Oil Companies That May Benefit From Cobalt's Angola Gusher

Stocks in this article: CIE KOS BP STO MRO

NEW YORK ( TheStreet) -- The huge spike in shares of Cobalt International Energy (CIE) on Friday is your classic frontier oil exploration story.

The Angolan offshore pre-salt region compares to the Brazilian pre-salt as one of the most hoped-for offshore oil gushers of the next century. Cobalt hit the proverbial pay dirt, but given Angola's profile as one of the best places to speculate for future production growth, the Goldman Sachs-backed wildcat company may not be alone in benefiting from positive drilling results in Angola.

Cobalt's CEO Joseph Bryant, said in a release on Thursday night of the Angola results: "Cameia is an extraordinary success. The results have exceeded our pre-drill expectations and have increased our confidence in our entire West Africa Pre-salt exploration inventory. We will immediately commence our Cameia appraisal program."

The Cobalt drilling results weren't a complete surprise. The stock had started running up late last year when another major player in the Angolan offshore, Scandinavian conglomerate Maersk, said it expected positive results from adjoining Angolan pre-salt blocs. Year-to-date Cobalt shares are up more than 100%.

Here are four other oil companies to watch based on the evolving Angola story.

When it comes to West African offshore exploration, Kosmos Energy (KOS) often trades on similar sentiment to Cobalt. On Friday, Kosmos was up by 4% on three times its average trading volume. Year-to-date, Kosmos shares are up 20%.

It's not just the true wildcat companies backed by big banks that stand to benefit from the Angolan pre-salt story -- Goldman Sachs is the biggest investor in Cobalt and Warburg Pincus is the largest shareholder in Kosmos. The European oil majors BP (BP) and Statoil (STO) are also major players in the Angolan offshore region.

Early success in a frontier oil play may contribute to production but isn't likely to be a needle mover for an oil major based on initial positive results. However, discoveries like the one made by Cobalt can be a read for the entire basin, said Macquarie Securities analyst Jason Gammel. Statoil shares were up more than 1% on Friday, even as the energy sector sold off and crude oil dipped.

The Macquarie analyst cautioned against reading too much into the Cobalt results, though.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs