Emerald Oil, Inc. (AMEX: EOX) is poking into positive territory this afternoon amid a downgrade at Global Hunter from Buy to Accumulate earlier.
Jim Cramer spoke with CEO McAndrew Rudisill on Tuesday night. While Emerald has 65,000 acres in the Williston Basin and just two rigs currently in operation, Cramer noted that the company plans to double production over the next year.
Rudisill said that Emerald has found success in the Williston Basin and plans to add another rig in April and another before the end of 2014. In addition, the executive noted that new technology is allowing the company to increase the size of wells currently in production.
While Emerald transports all of its oil out of the region via trucks, Rudisill noted that a new pipeline will be installed in Q114 and allow the company about $1 per barrel of savings.
Following a recent equity raise, Emerald has about $140 million in cash and zero debt, allowing the company to easily continue operations through the end of 2014.
Speculation currently has the Williston Basin with about 11.2 billion barrels of oil or more. While Emerald is a speculative energy play, Cramer believes that the company is in a good position to be a big gainer in the near term.
Shares of Emerald are up about 0.7 percent Wednesday.
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