Noble Energy has made a new discovery in Block 1 offshore Equatorial Guinea and will produce new oil by tapping into existing infrastructure by October, the oil minister said on Tuesday.

“We are excited to announce this discovery, which could not have come at a more opportune time,” Gabriel Obiang Lima, minister of hydrocarbons and mines, said in a statement.

Obiang Lima said the Aseng 6P well was drilled to a depth of more than 4,000 meters and Noble was in the process of connecting it to existing infrastructure in the Aseng field, which has five subsea wells connected to a floating production storage and offloading (FPSO) vessel.

Noble Energy is the operator of Aseng with a 40 percent interest and counts Glencore, Gunvor and Atlas Petroleum as partners, the hydrocarbons and mines ministry said.

Symmetrical Triangle pattern on the daily chart of Noble Energy stock.

Noble Energy stock is banging against an uptrend line and looks ready for another Supertrend buy signal to occur at anytime.

On August 22, 2019, Oppenheimer analyst Tim Rezvan upgraded Noble Energy to Outperform from Perform, with a $33 price target. While it has been a “tough summer,” the analyst sees a transformational free cash flow inflection and multiple compression for Noble into 2020. Rezyan thinks the “time is now” for investors to position for it, with shares less than $5 above their 11-year low. While Leviathan’s imminent start-up and free cash flow impact are widely known and not the sole drivers of his upgrade, the analyst’s work suggests shares don’t reflect this idiosyncratic catalyst and overlook a more benign Colorado operating environment, embedded midstream value, incremental CF from Alen, and multiple compression into 2020.

In the last 3 months, 7 ranked analysts set 12-month price targets for NBL. The average price target among the analysts is $30.40 which represents 41.3% upside from the current price. 7 analysts give Noble Energy stock a strong buy rating, 14 analysts give a buy rating, and 7 analysts give a hold rating.

We are not adding Noble Energy stock to the long-term buy and hold GST Portfolio at this time because the price of oil is a very risky gambit right now in the current market environment. However, readers may be able to profit from a short-term swing trade.

Disclosure: We do not hold any position in Noble Energy stock.

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