Gary,
Technically speaking, CWEI is beginning to form the W pattern that is allegedly bullish. Does CWEI need to break 15, the previous near-term high, before technically a Buy signal would be given?? The volume on the last two up days has been very light--does that factor into your indicators?? Thanks for your input.
Fundamentally, CWEI at a price of 14 is selling at 7.9 times 1996 earnings ($1.77) and 2.73 times 1996 Cash Flow ($5.14).
Broughton is drilling a pinnacle reef well just 9 miles north, and slightly east, of CWEI's property. The previous closest pinnacle reef well was 24 miles north, and slightly east, of CWEI's property, drilled by Marathon. Broughton is also beginning a sizeable 3-D seismic survey on a large block of their property adjacent, and north of CWEI. This should be very encouraging news to we CWEI stockholders --for Broughton, a privately held company, to be drilling, and in addition, expending on the order of $5M more on another seismic survey, lends that much more credibility that CWEI's North Giddings Block is sitting on top of the Cotton Valley formation. Last week I was told by CWEI that they hoped to have information on Broughton's drilling results within two, or three, weeks.
Buzz |
