Patrick,
The production figures for each quarter are available in the Intro paragraph to this thread.
techstocks.com
As you can see the production varies considerably from quarter-to-quarter; there are a number of factors involved, including weather, i.e. CWEI had lost 3 days in the first quarter as of the end of Feb.. CWEI had a good daily average of 6688 barrels a day for the fourth quarter. What they say is they have improved the completion techniques they are using and this helps improve flow. CWEI has something like 230 existing wells and drilled approximately one well/month/per rig--24 wells last year. With three rigs running this year they expect to drill 36 new wells. We should see some increase in the first quarter, and more of an increase in the second quarter, with the third rig. CWEI's reserves are approximately 8.3M barrels which is below the industry average--(short-life wells), plus CWEI wasn't replacing production but initiated horizontal drilling in December 1995, and began increasing their reserves-- they intersect more fractures with their present techniques. Cash Flow was $5.18 per share last year, and if CWEI was selling at the average multiple within the industry, it would be a $40 stock. Douglas is correct about the life of the pinnacle reef wells, especially as compared to Austin Chalk wells; there isn't any comparison.
As previously mentioned the Broughton/Zackson Rachui #2 is in completion now, and the Marathon Savell well was at 11,200 feet over two weeks ago, with a completion depth of 17000--should be there, barring problems, within a month.
Buzz |
