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: arthur eisner who wrote (94)	11/29/1996 6:27:00 PM
From: Buzz Mills	of 1017

Arthur, The news on the probable release of Iraq's oil was made over a month ago and the market had a very temporary fluctuation at that time in reaction to it and now the price of oil is back to $24 per barrel. Iraq can sell $1B worth of oil every 90 days, and the initial agreement is for 180 days, essentially $2B worth of oil. The Iraq oil embargo is essentially already ended and Turkey is prepared to start loading Iraqi oil onto tankers as soon as Dec. 15. There is 12M barrels of Iraqi oil already in the pipeline that comes into the port of Ceyhan, Turkey. Energy experts say that the market has already discounted the Iraqi oil and they say it won't have any appreciable effect on oil prices. In addition OPEC is not bothered by the fact that Venezuela is over-producing by as much as 1M barrels a month; they say that the market is absorbing the additional oil because of the greater demand. Whatever the reason for profit-taking in CWEI today, I don't believe it had anything to do with the Iraqi oil, and without further news to the contrary, I would attribute it to the fact that the stock has been up so much recently and is essentially due for a correction. I don't know, nor can I imagine, any negative news on CWEI at this time--but if anyone hears of anything please post the information. In the meantime there is a string of good news to come out on CWEI in December, not the least of which will be the new earnings estimates on, or about, December 6th. There should also be an announcement that the Underwriter has picked up on the options for the additional shares. That and when Zacks and First Call publish the new earnings estimates. Those are some of the things that will help push the price of CWEI up but everything helps--even something like CWEI having current financials in Stocksmart and that should happen this next week. Buzz

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