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: Patrick J. Saunders who wrote (946)	1/20/1998 4:39:00 PM
From: RonN	Read Replies (1) of 1017

Questions are from previous post that I passed on to Lajuanda Holder at CWEI IR. Q: What could a Cotton Valley Pinnacle Reef oil well do to the bottom line in barrels per day. CWEI: that one successful reef well (40 to 100 BCF) could increase the Company's reserves by 30 to 50%. Also I didn't notice this before but Cotton Valley wells are deep gas wells rather than oil wells. Q: What's the probability of striking a good well from the number of formations that were found? Any predictions based upon past drilling successes? CWEI: 40-50% success rate - still don't have new numbers - I expect them by late February. Q: How much/long does one of these 15K deep wells produce? CWEI: Reserve life of CV wells is 15 to 20 years. Q: How much capital to drill it? CWEI: Well costs are $3.5 million dry hole cost and $5.0 million completed gas well cost. Q: Does CWEI have access to the required rigs? (I understand that contrary to the current Oil Service Sector prices, rigs are still hard to get) CWEI: Management confirmed that getting a rig looks favorable. Q: Can CWEI sell the gas off at a profit with a hedge arrangement? CWEI: Any hedge arrangement for gas from a new Cotton Valley well is uncertain since we haven't drilled a well yet. The CV gas would not fall under the current hedge since that agreement is for a specific amount of current production. We couldn't hedge any gas we have not drilled for yet. Q: Has cwei completed the stock buy-back plan from earlier in 1997? CWEI: Any other purchases of stock done since the 3rd quarter 1997 Form 10Q will be disclosed in the Form 10K due to be filed in March of this year. Also I thought you might like to know about some insider purchases that have been filed with the SEC. All the purchases took place in December 1997: Mel G. Riggs, CFO purchased 1,000 shares. Robert Parker, Director purchased 2,000 shares. Clayton Williams purchased 1,400 shares, most of which he gave as gifts to his children and grandchildren. Total shares given as gifts from Mr. Williams were 4,082 shares. Mrs. Williams gave 120 shares as gifts. Chic Williams (Mr. Williams' mother) purchased a total of 15,900 shares and gave 4,657 shares as gifts to her children, grandchildren and great grandchildren. I hope this is helpful. --RonN

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