Subject: CWEI
Clayton has a lot going on. He has a new presentation on the Company's website that is worth looking at.
The South Louisiana area has had a string of decent wells, thanks largely in part to the Floyd Prospects, but he also hit with the Beshel and the Cobena is WOCR according to SONRIS.
He also has:
North Louisiana Cotton Valley / Hosston Trend (24,331 acres)with one well testing and two drilling
North Louisiana Bossier Trend (165,581 Acres)
East Texas Deep Bossier (Pressured) Trend (46,550 acres)
and the often recently mentioned Utah Overthrust Play (17,698 Acres)
Not mentioned in the presentation is the drilling in Colorado on another high impact opportunity. Maybe it is not mentioned because drilling results weren't good, maybe it wasn't mentioned because drilling result were good.
He also has at least four of the twelve Rigs from the Lariat JV turning now, with likely another 3 ready or just about ready for service. I believe the purchase of these rigs was a good move, and should be a solid contributor to results unless the drilling market collapses.
Clayton is always looking for the big one. Many have been frustrated because many of the "Big Ones" ended up dry. He did hit it big with the Cotton Valley play several years back. My bet is he can do it again.
To own CWEI, you need to be patient. I still have managed to flip a few shares, but I have always had a fairly heavy position. I recently purchased another 2,000 shares to bring my holdings up to 36,500 shares. I'm gonna be smiling when he announces he hit the big one.
In the meantime, I don't see much downside at current valuation even if he doesn't hit the big one. He has had good successes this year in his core area (South Louisiana). There is only about 11 million shares outstanding, so even a moderate discovery will have a big impact on share price.
The trade off is, it is hard to accumulate. The good ones are always hard to get!
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