Anadarko said yesterday after the market closed that it had discoved reservoirs of oil-containing rock within its Shenandoah-2 well deep in the waters of the Gulf of Mexico. The discovery ranks among the producer's largest ever off the shores of Texas and Louisiana.
Anadarko was gaining 3.3% to $86.04 by the early afternoon.
"With ownership in the successful Shenandoah wells, the adjacent Yucatan prospect, and the very encouraging results from the nearby Coronado well, Anadarko is strategically positioned in the Shenandoah Basin, which has the potential to become one of the most prolific new areas in the deep water Gulf of Mexico," Bob Daniels, senior vice president of deep water and international exploration said in a press release.Anadarko is also the operator of the Shenandoah-1 well in the Gulf of Mexico. Other co-owners in the Shenandoah wells are ConocoPhillips (COP - Get Report), with its 30% stake; Cobalt International Energy (CIE), which has a 20% interest in the development; Venari Resources, which holds a 10% stake; and Marathon Oil Company (MRO - Get Report), with its 10% holding. Cobalt was surging 7.1% to $27.61, ConocoPhillips was rising 1.1% to $59.97 and Marathon Oil was up 1% to $34.32. "We see something like this as a positive catalyst for those interested in the energy space, but more name-by-name and stock-by-stock than broad-based," said Randy Cain, manager of the ASTON/Herndon Large Cap Value Fund that oversees about $90 million within Aston's $11 billion under management. The fund's portfolio owns both Anadarko and ConocoPhillips, which the Cain believes "have not been priced that aggressively in the markets." Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.