Cobalt International Energy, Inc. CIE announced that it has plugged and discarded its North Platte #2 appraisal well in the deepwater Gulf of Mexico. The company’s share price has been trending downward post-announcement and has declined by 1.5%.
The operations were suspended in the North Platte #2 appraisal well due to a seal failure in the riser connection system. The problem with the riser was spotted while the well was being drilled by Rowan Reliance – a drillship – at a depth of 20,701 feet. The well was permanently discarded before it reached any geological targets.
Currently, Cobalt awaiting the permit for the North Platte #3 well, which is situated about 200 feet from the surface location of the North Platte #2 well. If the permit is approved on time, Cobalt expects to drill the North Platte #3 well within two weeks. Moreover, the well results are anticipated in the second half of 2015.
Drilled in 2012, the North Platte #1 discovery well came across more than 550 net feet of oil pay in multiple high-quality Inboard Lower Tertiary reservoirs. Cobalt operates North Platte with a 60% working interest.
Texas-based Cobalt was incorporated in 2005. It is an independent exploration and production company. The company actively operates in the deepwater U.S. Gulf of Mexico and offshore Angola and Gabon.
Cobalt currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks from the oil and gas sector include Phillips 66 Partners L.P. PSXP, Western Gas Equity Partners, L.P WGP and Hallador Energy Co. HNRG. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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