Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Cobalt International Energy jumped 10% today after Anadarko Petroleum announced an oil discovery.
So what: The oil field is in the Gulf of Mexico and was called a "potentially giant project" by Anadarko's head of exploration. Cobalt owns 20% of the field, so it will see a big impact if the project is as big as initial testing suggests.
Now what: Analysts are saying this is the largest discovery in the Gulf of Mexico and may be twice as big as previous estimates. The well is 6 miles deep, and we're still quite a way from generating significant revenue for any company involved. Still, this is major progress for Cobalt, and I think the stock can continue to run higher as it gets closer to generating revenue from this huge project.
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The article Why Cobalt International Energy's Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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