Saturday, February 11, 2012

Seabed oil test off Angola beats driller's expectations

Cobalt International Energy Inc. said results from tests at a deep sea oil well off Angola had exceeded expectations and had increased the company's confidence in its West African pre-salt exploration prospects.

Analysts and investors believe drilling thousands of metres under the Kwanza Basin seabed through blocks known as pre-salt could match huge discoveries made off the Brazilian coast in similar rock formations.

Cobalt, whose main stakeholder is Goldman Sachs, said tests at its Cameia-1 well in Block 21 confirmed the presence of a 360-metre "gross continuous oil column."

Analysts at Citi said the test results were "quite impressive" and the well's reserve potential could exceed two billion barrels and be worth up to $2.6 billion.

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