Todd,
Articles, like the one in Wall Street Digest, can't hurt the stock, and I think collectively, over a period of time, can help the stock a great deal. There is another article on CWEI, and the Pinnacle Reef Play, coming out in Buyside Magazine; I will try to find out the scheduled publication date--I think it is some weeks away. There is an Internet version of Buyside Magazine so we should be able to access the article.
Andrew, I am disappointed that CWEI didn't report earnings as scheduled, but the original delay was that the independent auditors had not completed their audit--the additional week of delay is because Clayton Williams, Jr., had a long-time commitment to spend this week with his children who are on spring break. Per CWEI, the numbers won't change.
Earl--the drilling of a Pinacle Reef well is indeed risky, and dangerous--drilling up to 19,000 feet deep to intersect a relatively small target--I wish I was knowledgeable about how they manage to do this. As I understand a pinnacle reef well--there isn't much of a diameter to the pocket, but they can be up to 500 feet in depth, which allows for the great volume of natural gas. It may have been the first pinnacle reef well that was discovered--but anyway, it spewed forth such a huge volume of gas that they couldn't control it--and they ended up abandoning the well--probably because of the inherent danger involved--but they did come back to it a few years later after they had the technology to control the flow. I did hear a horror story, from Miller Houghton, of drilling costs skyrocketing to many times the originally anticipated cost. I believe, that CWEI, having done the 3-D survey on their own--that if high-probability targets are located--CWEI would be in a very good position to forge an agreement to have another player(s) drill, and bear the expense of the well(s), in return for a share of the profits. This would greatly benefit the company and the stockholders--zero risk, good probability of a return.
Buzz |
