Investing.com -- Sable Offshore Corp. (NYSE:SOC) stock soared 20% following the announcement of the restart of oil production at the Santa Ynez Unit and the anticipated oil sales from the Las Flores Pipeline System in July 2025. The company’s shares reacted positively to the news that six wells on Platform Harmony (JO:HARJ) had begun flowing oil to Las Flores Canyon at a rate of approximately 6,000 barrels per day since May 15, 2025.
The successful completion of the Gaviota State Park anomaly repairs on the Las Flores Pipeline System, as part of the Consent Decree, has allowed Sable to conclude its anomaly repair program on the Onshore Pipeline. With seven of the eight sections of the pipeline hydrotested, Sable is on track to complete the final hydrotest, which is the last operational condition required to restart the pipeline as per the decree. The company anticipates filling the roughly 540,000 barrels of crude oil storage capacity at Las Flores Canyon by mid-June 2025 and to recommence oil sales the following month.
Stronger-than-expected well test results from Platform Harmony have been reported, surpassing performance levels from when the unit was shut down in May 2015. Approximately 30% of the 32 producing wells at Platform Harmony have been tested, with the remaining tests expected to be completed within days. Sable also plans to initiate production from additional wells on Platform Heritage and Platform Hondo in July and August 2025, respectively.
In light of these developments, Sable has updated its second half of 2025 guidance, doubling its net average daily production estimates from the previously projected 20,000-25,000 barrels of oil equivalent per day (BOE/D) to 40,000-50,000 BOE/D. The company has also reduced its lease operating expense projections from $17.00-$19.00 per BOE to $11.00-$13.50 per BOE.
TD Cowen analyst David Deckelbaum has responded to the news by raising the price target on Sable Offshore Corp. to $40.00 from $31.00, while maintaining a Buy rating. Deckelbaum’s comment highlights the significance of the production restart and the pipeline repairs: "The story is largely derisked as all pipeline repairs have been completed with recommissioning imminent." This optimistic outlook underscores the company’s progress and the positive market sentiment surrounding Sable’s operational advancements and future prospects.
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