SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL
CWEI 131.900.0%Apr 25 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Patrick J. Saunders who wrote (549)3/26/1997 11:36:00 PM
From: General Crude   of 1017
 
I will try to check on this. With regard to the Austin Chalk, the "flush" production doesn't last that long (maybe 3 to 6 months on oil wells); the wells then drop off dramatically, but will continue to be profitable for years at a lower production rate (up to 10 years or more). The trick is to have a large inventory of good leases and drill as fast as possible; it's a financial game. Union Pacific Resources(UPRC) and Chesapeake Operating are good examples of how the game is played. I do not have a position in any of these companies and have not really followed any of these stocks, but I am somewhat familar with these companies; I own oil and gas royalties in the Giddings area. The good news is that the whole Giddings area could have deep potential. UPRC, the largest producer in the Giddings Field, initially acquired its acreage position in the area (late 1970's)for deep drilling (Cotton Valley). Never did drill the prospects because the Austin Chalk play came to them (its acreage) and then the oil bust hit in the early 80's. If you believe we are at the beginning of a major upturn in the oil business you should look at SLB and HAL who are the premier oil service companies; they would be the Intel and Microsoft of the oil business in my opinion.

Good luck.

Doug
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News