John Tornatore--a follow-up on the question you had on how could Paine Webber estimate $1.70 for the year and only 0.56 for this quarter. I passed this question on to Lajuanda Holder, Director of Investor Relations at CWEI, and she responded that CWEI management is now reviewing Paine Webber's estimates; I will pass on their reponse when it is available.
Miller, it turns out the third drilling rig was brought on for use only on the Austin Chalk formation to 7000 feet--it is used for horizontal drilling on the dual lateral wells that CWEI has been drilling. I mistakenly thought it would eventually be used for the pinnacle reef play--glad you brought up the point of the heavier rig.
Hanifen, Imhoff have come up with new estimates for CWEI and they are now reviewing the numbers prior to their release. Lajuanda at CWEI, thought they might be released next week.
The analyst from Morgan Keegan stated that he plans to do a write-up on CWEI when the Cotton Valley play was firmed up, so that should be relatively soon. The analyst for Morgan Keegan, for now per Zacks, is maintaining his 0.80 estimate for fiscal '97; it appears the new estimate will be with the release of the write-up. I queried Zacks for the fourth quarter and '96 year estimates from Morgan Keegan.
Lajuanda Holder also said, "it appears that the Cotton Valley trend runs right through the solid 109,000 acre block we are drilling on to the Austin Chalk formation." This is to say that CWEI is on trend with some of the major discoveries of pinnacle reef wells to the northeast of their property.
At noon, CWEI is trading at 17 1/8, 16 3/4 X 17 1/8, on 28K volume, and appears to be returning to its opening highs; glad to see that. A close above 16 7/8 today would be a "new closing high for CWEI." It would be nice if we also had some trading volume. |
