This Day On The Street
Continue to site
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

Cobalt Energy (CIE) Plummets Despite Big Gas Find

NEW YORK ( TheStreet) -- In a seemingly incongruous move, Cobalt International Energy (CIE) shares are plummeting after the company said it had discovered more natural gas than expected at its well off the Angolan coast in Southern Africa. At its Lontra well, the offshore oiler has tapped a flow of 2,500 barrels of gas condensate and 39 million cubic feet of gas per day at a total depth of 13,763 feet.

"Although the field contains more gas than our pre-drill estimates, it is beneficial that Lontra is offshore near Luanda, where we believe there is a potentially large emerging market for gas," said CEO Joseph H. Bryant in a statement. "It is clear that Lontra is a discovery on a global scale."

"This excellent track record gives us increased confidence in the depth of our Angolan portfolio, the size and value of its potential and the likelihood of further large discoveries," added Cobalt Chief Exploration Officer James W. Farnsworth.

However, foreign investors are restricted under the country's production-sharing contracts, thus capping potential profitability. The Houston-based business owns the majority stake in the well, with BP (BP - Get Report) and Angola-run Sonangol each holding a 30% interest.

Must Read: Formula Systems (1985) Enters Oversold Territory (FORTY)

By early afternoon, shares had shed 16.3% to $18.61 and 13.6 million shares changed hands, more than four times its three-month average daily trading volume. BP was trading 0.53% lower at $46.76.

Monday is proving a bad day for oilers as shares of Brazil-based business Petrobras (PBR - Get Report) also went south. Shares were down 10.8% to $14.22 after the company hiked its diesel prices 8% and gasoline prices 4%. 

--Written by Keris Alison Lahiff.

Also see: The 10 Drunkest States in America... and the 10 most sober.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BP $33.49 0.00%
CIE $3.19 -0.31%
PBR $7.69 -0.13%
AAPL $93.48 -1.40%
FB $116.38 -0.30%


Chart of I:DJI
DOW 17,729.30 -101.46 -0.57%
S&P 500 2,059.25 -16.56 -0.80%
NASDAQ 4,762.78 -42.5110 -0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs