CRZO has had a challenging time of meeting quarterly targets so this should be seen as significant news. Not only that, but it is already forecasting 7K barrels from the Eagle Ford alone by the end of 2012. This doesn't include anything from the Niobrara or any other fields.
Amazingly the stock is flat for the day as the markets ignores the good news. Magnum Resources soared 17% yesterday on similar news. Not sure what else the market wanted, but this provides the new investor an opportunity to jump onto a proved fast growing producer at a cheap valuation.
Details per PR:
- "It may have appeared optimistic when we announced our 5,000 bopd target in mid-2010 given that we were producing approximately 400 bopd at the time and had no production from the Eagle Ford or Niobrara," commented President and CEO S. P. "Chip" Johnson IV
- The initiation of production from these last eight wells brings our well count to 23 gross producing Eagle Ford wells with another 13 gross wells drilled waiting on completion and 9 gross Niobrara wells producing with one gross well waiting on completion.
- "Based on our well inventory and drilling and completion forecast, we expect to reach a net oil production rate of as much as 7,000 bopd by the end of 2012 from the Eagle Ford alone."
Disclosure: Long CRZO. Please review the disclaimer page for more details.