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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: laurin_de who wrote (34863)	11/11/2009 4:41:24 AM
From: Crossy	Read Replies (1) \| Respond to of 37387

Laurin, if you relate Enterprise Value to current and future possible production, you will realize that such "forward metrics" are still very low and pretty good, given the fact that CXPO could easily double, even triple production with just 3 of such wells .. and 105 are planned. Okay, not all might be this prospective and it's NG not oil, however this play appears to be pretty compelling. what many do not realize is that most of CXPO's EV lies in its senior indebtedness. If target EV is doubled, the difference will flow through to equity holders rgrds CROSSY

To: laurin_de who wrote (34863)	11/12/2009 12:04:48 PM
From: Joe Dancy	Read Replies (2) \| Respond to of 37387

Good point Laurin on CXPO, thanks. If you look at the longer term you will see that the stock has been much higher than current price. The lack of liquidity during the banking crisis killed this one from a price standpoint, along with the collapse of natural gas prices. With a market cap of $50 million they have 12,000 acres in the Southern Haynesville, leases going for roughly $5,000 an acre. Proved reserves are significant per share after debt, they have quite a bit of production outside the Haynesville. The Kardell well convinced Devon to put 5 rigs to work full time in the southern Haynesville for the next two years, quite a drilling program at $5 to $10 million per well!