Clayton Williams Energy (CWEI) OIL Message Board

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

CWEI 131.90

0.0%

Apr 25 5:00 PM EST

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To: Daniel Schumacher who wrote (962)	3/2/1998 11:25:00 AM
From: RonN	Read Replies (2) of 1017

A note I dashed off to Lajuanda Holder of IR got this reaction: ...Hanifen is very excited about the stock. We'll be drilling the first CV well in March - but it takes at least 3 months to hit the "pay". The presentation at the Conference went very well. Although one might wonder because of the stock price! I do know what happened to the price. A lot of mutual funds (as you know) are rolling out of oil stocks. Well, Prudential Securities rolled 50,000 shares out earlier this week which put downward pressure on the price. Then, yesterday, a PaineWebber Market Maker on the west coast who doesn't follow the stock panicked due to the softness of the stock price and dumped 50,000 shares. It appears that this caused a few other investors to panic also. This drove the price to $7.75. However, several of Hanifen's client who attended the Conference purchased the flood of shares. I talked to several panicked individual investors all day yesterday. There is absolutely no news we know of that caused this sell off. The Hanifen Market Maker is the one who was able to tell us what happened. Greg McMichael's projection of $24 per share is very possible due to Cotton Valley speculation. It looks like he will be a little high on earnings projections since the exploration costs will be higher than expected. No cash flow info is in the news release but we did talk about the projections at the conference. The numbers are expected to be: 1997 CFS - $5.45 1996 CFS - $5.17 1995 CFS - $4.68 These are discretionary cash flow numbers. We expect to release the number next week or the following week (between 3/4/98 and 3/12/98). The "Gulf Coast" projects are each small but together (if successful) could add 40 MMBO and 400 BCF to the reserves. Each is in an area where Mr. Williams has had personal success prior to the Company going public. I have a little more detail if you're interested. Ed Norwood, the Cotton Valley geologist, is expected to complete interpretation by the end of March. But I understand that a location has been decided upon and arrangements are being made for a rig and to prepare the location. All the detail are being kept very quite. Also we had to hire a new drilling manager which Mr. Williams mentioned at the Conference. He used to work for Marathon when Ed Norwood was there -- they drilled reef wells together including the first one (Poth #1) that no one believed was a reef except for these two guys. I'm hoping we'll put out an announcement about it when he actually comes on board -- He's working out his notice right now.... Sounds like Mr. Williams is putting the pieces in place! --RonN

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