Value Microcaps Motherboard

[tr8dervic]

CPE reports .45 per share, slightly beating estimates of .44 per share. Q4 guidance was lowered to 53 MMcfe/d from previous 64+ range. Murphy operated Medusa which supplies a major amount of CPE's crude oil production is having problems causing a loss of 9.1 MMcfe/d. (About 140Mmbls less in q4). Natgas adds will increase production about 7.5 MMcf/d.

Bottom line will be about 3 mil less in revs sequentially if pricing stays constant Q to Q.

Word is that Deep Norman prospect has spudded and TD is expected around year end. It is a 200 - 500 MMbl prospect with Callon holding a 5% WI. If it hits that would be a $10+ instant add to CPE's NAV.

PPS will show downside pressure nearterm imo due to lowered Q4 quidance. Hook-up delays will likely be cited as one of the problems in CC tomorrow.

I would hold off buying more for now until closer to TD on Deep Norman. (Unless goes too far down, ie:<12.00)

Vic