Clayton Williams Energy (CWEI) OIL Message Board

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

CWEI 131.90

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Apr 25 5:00 PM EST

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To: RonN who wrote (918)	11/3/1997 6:48:00 PM
From: RonN	Read Replies (2) of 1017

Some further info from Lajuanda H.:..... I now have more information. The information that follows is presented as neither positive or negative, but merely the facts as know to date. The Mamau Prospect (Perron #1 is actual well name) was targeting upper, lower and middle Wilcox formations. The "big" reserves were expected in the Lower Wilcox. After reaching the upper and middle Wilcox, the geology suggested that the "big" reserves would not be in the Lower Wilcox. The Perron #1 will be an Upper Wilcox completion. It is expected to complete in about 2 weeks. While drilling, they encountered the Sparta formation (8,000 ft. deep) which was not expected. If the Upper Wilcox (13,000 ft. deep) looks good then we will produce from the Wilcox for a while and then go back up to the Sparta to check it out. If the Upper Wilcox doesn't look good, they will probably go ahead and pull back up to the Sparta immediately. This is to say that this prospect will not be a 100 bcfe well as previously expected. There are no estimations as to what the results will be or the reserves expected. The company that is processing the data of the Cotton Valley 3-D Seismic shoot is drastically behind schedule. Mr. Williams said the company has been saying the data will be ready in 2 more weeks for over a month now. This is due to extremely heavy workloads with the "3-D technology boom". Mr. Williams says he doesn't expect to see the data in-house until the first part of December. Other Cotton Valley news is that Sonat (upon preliminary evaluation of their shoot just a few miles to the north of CWEI acreage) believes they have 3 LARGE anomalies. Management expects to see Sonat drill one or more of these "anomalies" during 1st quarter '98. We will be watching this closely. Mr. Williams has also stated that there are several options open to the Company when we get ready to drill our first CV well to help spread the risk. Austin Chalk wells is the northern end of the Giddings Block are exceeding expectations. Even though CWEI cut rigs from 3 down to 2, production was up significantly (38% higher over all production and 57% higher oil production over last year) as you have seen from the earnings release. Management expects cash flow to easily exceed $5 per share for the year. A (small) 3-D shoot has been completed and is in the processing stage for the Driscoll Ranch project in Duvall County, Texas. CWEI expects to drill a "Wilcox test well" during first quarter '98. Other small shoots include the Hubbard Dome in Mississippi. CWEI also expects to drill this salt dome in first quarter. I do hope this is helpful. Please let me know if you have any other questions. Sincerely, Lajuanda Holder...... Interesting. Any comments? --RonN

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