Sable Offshore Corp. (NYSE:SOC) stock jumped 20% after announcing the restart of oil production at the Santa Ynez Unit and expected oil sales from the Las Flores Pipeline System in July 2025. Since May 15, six wells on Platform Harmony (JO:HARJ) have been producing about 6,000 barrels per day flowing to Las Flores Canyon.
The company completed major repairs on the Las Flores Pipeline System under a Consent Decree, with seven of eight pipeline sections hydrotested. The final hydrotest to restart the pipeline is expected soon. Sable plans to fill roughly 540,000 barrels of crude oil storage by mid-June and resume sales in July.
Well tests from Platform Harmony exceeded expectations, surpassing performance from before the unit’s shutdown in May 2015. About 30% of the 32 producing wells have been tested, with the rest to be completed soon. Production from additional wells on Platform Heritage and Platform Hondo is planned for July and August 2025, respectively.
Sable revised its second-half 2025 guidance, doubling its net average daily production forecast from 20,000-25,000 BOE/D to 40,000-50,000 BOE/D. Lease operating expense estimates were cut from $17.00-$19.00 per BOE to $11.00-$13.50 per BOE.
TD Cowen analyst David Deckelbaum raised the price target on Sable Offshore to $40.00 from $31.00 and maintained a Buy rating. Deckelbaum stated,
“The story is largely derisked as all pipeline repairs have been completed with recommissioning imminent.”
This outlook reflects positive market sentiment around Sable’s operational progress and growth prospects.