Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : CPE: Callon Petroleum Company -- Ignore unavailable to you. Want to Upgrade?

To: Ed Ajootian who wrote (7)	11/9/2002 1:55:59 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 31

The CPE CC confirmed my worst fears -- initial production is now not expected until May. Nevertheless, they had a great quarter and I would agree with you -- I am now projecting that 4Q will be breakeven for them -- quite an amazing acheivement considering they are bearing all of the debt of their deepwater program without any income from that to offset the interest. I would expect the analyst with the "strong sell" on this company to either upgrade it or drop coverage very soon. It is now clearly evident that the company will survive to see its deepwater program get into production, in which case a "strong sell" opinion is clearly unwarranted. In the CC they talked about doing a sale/leaseback of the Medusa spar. This would generate about $2/share in cash for CPE and would cause the stock to skyrocket since it would then allow them to ramp up their Shelf drilling program again, which we all know has been amazingly successful over the last 3 years.