Cobalt International Energy
While Angola and the Gulf of Mexico may seem worlds apart, the two very different places will both drive future growth at Cobalt International Energy (CIE).
The E&P firm owns roughly 1.4 million gross undeveloped acres in the Gulf as well as more than 5.6 million gross undeveloped acres in Angola. That acreage has turned in some pretty impressive results with initial test wells and production. However, analysts — including Cooperman — believe that the market isn’t fully evaluating the potential of those huge tracts of land.
After all, if there is oil in one well, there’s usually oil right next to it. By that logic, Angola has reserves of more than 12.66 billion barrels of crude oil
That could mean that Cobalt is sitting on a virtual ocean of crude, and investors could be sitting on some nice gains. Price targets for CIE shares are about $15 higher than they currently are trading for.
Cooperman added 1 million shares of CIE during the quarter.