Cobalt International Energy Inc. announced on Monday that their expedition for oil in the Gulf of Mexico failed. The company however, stated that the West African Well was yielding more positive results.
In the premarket trading of Cobalt, shares were down at 12% to USD 25.75, but were up by 20% Friday.
Cobalt owns 42% of the Ardennes #1 exploratory well at the Gulf of Mexico, where no hydrocarbons were found. However, Cobalt's offshore well Damian #1B located off Gabon has confirmed a working petroleum system. The said well was found to contain hydrocarbons that are believed to be gas with condensate and would be temporarily abandoned pending further analysis.
Cobalt owns a 21% working interest on Damian #1B. Marathon Oil Corp. holds another 21% interest in the well, with Total Gabon SA owning 43%. The remaining 15% is owned by the State of Gabon.
Cobalt focuses on exploration, development and production in deepwater U.S. Gulf of Mexico and offshore Angola and Gabon. Marathon Oil, based in the United States, is another oil and natural gas exploration and production company. Its shares were down 1% to USD 33.75 premarket.
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