Clayton Williams Energy (CWEI) OIL Message Board

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Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL

CWEI 131.90

0.0%

Apr 25 5:00 PM EST

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To: Gary K. Best who wrote (523)	3/22/1997 9:01:00 PM
From: Buzz Mills	of 1017

Gary, Good to see you are still following CWEI. I have sent an email off to Lajuanda Holder to ask about the specifics of the two mentioned farm-in agreements. My understanding(mostly assumption) would be that someone else holds the lease on the property and has given (sold) CWEI the rights to drill on the property to a given depth--let's say covering the Austin Chalk formation which runs from about 4000 to 7000 ft in depth--of course CWEI is paying for the privilege. I am not positive but on a rough map that I have, it shows that Broughton/Zackson has control of the property north of CWEI and is planning on/or has a 3-D seismic survey in progress. Broughton/ Zackson is focusing on the Cotton Valley formation pinnacle reef wells which exist between 14,000 and 18,000 feet. Broughton/Zackson are currently drilling three pinnacle reef wells; the Rachui 9 miles north, and slightly east of CWEI, the Pollard which I don't yet have a location for; both of the wells are in Robertson County, and the Reagan in Leon County. Broughton/Zackson have participated in three other successful pinnacle reef wells with Marathon and American Cometra. They are going after the big gas wells and are apparently content to allow others (CWEI) to drill the Austin Chalk for oil. CWEI's fourth quarter production was very close to 6700 barrels a day with only two drilling rigs--I was impressed with that number. They have become more effective at maximizing each well. With three rigs now drilling they could soon become an intermediate producer --producing more than 10,000 barrels per day from the Austin Chalk formation. Buzz

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