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Gold/Mining/Energy : Clayton Williams Energy (CWEI) OIL
CWEI 131.900.0%Apr 25 5:00 PM EST

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To: Miller Houghton who wrote (215)12/22/1996 1:10:00 PM
From: Buzz Mills   of 1017
 
Miller,

With respect to the deal you are involved in with CWEI on the eastern shelf of the Permian Basin where you mentioned the geologist recommended shooting 3-D on top of the 2-D you already have. What county is that drilling area in and which CWEI geologist recommended it, Sam Lissie, or Ed Norwood? How deep do you have to drill in that area? It was my understanding 3-D was mainly being used to locate the 15-16K deep pinnacle reef wells, although I assume it would provide much better definition for shallower wells too. When CWEI shoots 3-D on their North Giddings property beginning in January, how long do you think it would take them to come up with targets? It is my understanding that CWEI has already identified a number of probable formations using 2-D and the 3-D will be used for further enhancement of these structures. I agree with you that CWEI won't waste any time and will start drilling for pinnacle reef wells as soon as possible; the drillers have more business than they can handle and I'm sure the price has gone up accordingly. The data that is obtained from a 3-D seismic shoot--what type of data is it and how long does it take to analyze it??? If you could, would you give me a short overview of what the 3-D process is about and what the results might look like?? Thanks Miller.

Buzz Mills
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