RIG - Huge Oil find in Gulf of Mexico

Heard from CNBC about the huge oil find in the Gulf of Mexico. Also read from American Capitalist:

Black Gold Gushes in the Gulf
Just announced this morning, Chevron Corp. (CVX:NYSE) has successfully completed what it called “a record setting production test” on a well located about 270 miles southwest of New Orleans in the Gulf of Mexico. Chevron said the well sustained a flow rate of 6,000 barrels of crude a day. Unfortunately, the equipment used is not able to maintain more than 6,000 barrels, but we’ll take what we can get.
Chevron owns 50% of the well, with companies like Devon Energy (DVN:NYSE) and Statoil (STO:NYSE) holding the remaining 50% equity interest. All three companies are estimating the new oil field to hold between 3 billion and as much as 15 billion barrels worth of oil and gas reserves. If 15 billion barrels are found, oil reserves would be boosted by 50% in the United States.

The find should benefit Oil Services stocks. One player I like a lot is RIG. It had quietly gained more than $4 on Friday and further gained $2.70 so far today. We have 2 more months before the hurricane season is over. Any freak hurricane in the Gulf of Mexico (where many of U.S. oil rigs are located, apart from Alaska) would again benefit RIG.


Target = 80.10, 84.05 & 90.16 (52-week high)
Stop loss = 65.52

- PersianCat04 (Millionaire-in-progress)