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To: Dale Baker who wrote (32017)	12/13/2002 9:21:35 PM
From: DELT1970	Read Replies (1) of 118717

This comment on CPE from Friedman Billings Ramsey this afternoon. Downgrade to Underperform from Outperform After market close, CPE announced that the delineation well at its Boomslang discovery did not encounter sufficient hydrocarbons to justify further development of the discovery. As a result, we expect the company to write off 18.5% of its year-end 2001 proved reserves. To reflect the loss of reserves, we are reducing our net asset value (NAV) estimate approximately 23% to $8.85 per share from $11.50 per share (see Table 1). We are lowering our 2003 EPS and CFPS estimates to ($0.34) and $2.06 from ($0.29) and $2.64, respectively, to reflect the company's revised production and operational guidance (adjusted for the loss of anticipated production at Boomslang in 2003). We are also reducing our 2004 EPS/CFPS estimates to $0.13 and $3.98 from $0.54 and $5.01 to reflect the disappointment at Boomslang. A duster in a big well is tough on a small E & P and I have my fingers crossed BEXP will not suffer this fate on the Mills Ranch #2, which if successful, will increased daily production by 25%. BEXP remains a good spec, IMO, as may CPE at this level.

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