Value Microcaps Motherboard

[Tr8dervic]

CPE guided lower for the full year from 70-75 MMcfe/d previous guidance to 58-62 MMcfe/d on new guidance.

Q3 natgas expected to be flat at 2.6 to 2.8 BCF.
Q3 oil expected to be 350 - 375 Mbbls vs 443 Mbbls in q2.

A lot of production (mostly gas) that was expected to come online in late q2 and early q3 is now deferred to late q3 and early q4. Q3 will look weak sequentially but Q4 should kick butt.

Howard Weil yesterday downgraded from Hold to Sell with a target price of 18 vs 23 previously.

The deep Norman Prospect will spud in 30 days or so. CPE has 5% WI and the potential is 200-500 MMbls. That would be 10 to 25 million bbls for CPE if it hits.

I am a fairly aggressive buyer at these levels. As the Norman Prospect gets spudded and starts reaching TD later in the year (24,000 feet), it should generate some good buzz.

With NAV of about 30, this is a keeper at these levels and lower imo.