Deutsche Bank (DB) lifted its price target on Cobalt International
Energy Inc.(NYSE:CIE) to $25 from $17, following "very encouraging"
results from the Cameia-1 well in Block 21, located offshore Angola.
Discovery at Cameia-1 confirmed the geologic model with a significant
oil col., high-quality oil/carbonate reservoir and better-than-expected
net pay estimates, the company said.
"Our $25 PT reflects success at Cameia (90% vs. 15% prior), as well
as derisking of other Angolan prospects in Blocks 9, 21, and 20," DB
analyst Ryan Todd wrote.
"We see potential upside to Cameia reserves, but more importantly, we
believe that with proof of geologic concept, CIE's deep inventory of
prospects is likely to see success rates far in excess of our 30%
assumption," Todd added.
While early results at Cameia are exciting, Todd said the market
still underestimates the potential for continued value accretion in
coming yrs.
Todd has a "Buy" rating on the stock.
The stock, which has been trading in the 52-week range between $6.30 and $19.00, rose 1.11 percent to $18.25.