Received from Lajuanda Holder, Investor Relations, CWEI
>>>>>>>>The "tone" of this email is not intended to be either negative or positive-- merely factual and informative:
The other nine locations in Louisiana are not on the drilling schedule yet, pending results from the Mamau. Possibly another location will begin drilling immediately after the Mamau is completed. The plan is to complete the Mamau to 3 different pay zones - the upper Wilcox, lower Wilcox and the middle Wilcox.
There is a field called the Mamau Field (24 wells) located to the northeast of the CWEI location. These wells were drilled in the early 1940s and completed only to the upper Wilcox formation (or pay zone). No records were kept on production until 1957. These wells were online for 17 years prior to record keeping. By 1957, these wells were considered "stripper wells" which means they had already produced most of the oil and gas. These wells are still producing and recent records (Oil & Gas Journal) reported that since 1957 these wells AVERAGED 630,000 barrels each. A few of the wells have produced 2 to 3 million barrel. The cumulative production on all 24 wells since 1957 is approx. 12 million barrels.
The cost of drilling the Mamau is expected to be between $2.5 and $4
million. Hanifen, Imhoff (lead analysts group following CWEI) believes that if the Mamau is successful (100 billion cubic feet equivalent), it could be worth $5 to $6 a share. Hanifen has really been pushing the stock because they're really excited about the Mamau which has really pushed the stock price up lately. This is a double-edged sword -- if the Mamau is unsuccessful or marginal those investors may dump the stock, driving it down. CWEI is expecting a good well but there is risk. Since Management is conservative, the Company has not "played up" the Mamau.
The actual field work of the 3-D seismic shoot is complete. Now the data is being migrated which takes a while. Migration is sort of like complying the data so it makes sense when a geologist looks at it. The migration is done in sections since the shoot is so large. Once all the various sections are migrated, then all the sections are migrated together. In other words, it will be a while before the geologist have anything to look at. All they know so far is that the quality of the data is exceptional.
Mr. Williams (CEO) said that as soon as we have results, Management plans to release them since rumors and speculation could dramatically impact the stock price. The next news I expect the Company to release is earnings with possible results on the Mamau and the 3-D shoot the first part of November.
I hope I haven't overwhelmed you with information. If you need additional clarification, please let me know. The 3-D information is very complicated and I'm in the process of trying to learn more. I have access to plenty of people who can answer questions, so if I haven't explained something clearly please let me know and I'll get a better explanation. Please don't hesitate to ask anything you'd like -- that's why I'm here. You are welcome to post this information.
Thanks again!
Lajuanda<<<<<<<<<<<<<
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