Clayton Williams Energy, Inc. (CWEI)

[OilStockReport]

Continued upside!

Clayton Williams (CWEI) is a stock I currently own. Clayton has quietly grown 140% over the past year. Clayton breaks down into two areas. The first is the Permian Basin, where Clayton has 198000 net acres. Clayton had an average daily net production in 2010 of 8319 Boe. Proved reserves in the Permian are 38 MMboe as of the end of 2010. Clayton has 254000 net acres in the Giddings area. Giddings proved reserves as of the end of 2010 were 11 MMBoe. Average daily net production in 2010 was 4144 Boe. Clayton also owns 12 drilling rigs, currently drilling in the Permian and Giddings areas. In 2010 this company's product mix was 74% oil and natural gas liquids. This was an increase from 62% in 2009. Clayton will be spending $381.8 million on exploration and development in 2011. In all, $295.3 million will be spent on the Permian while $80 million will be spent on Giddings. Overall, Clayton has two very large and lucrative areas to drill in Texas. Its access to drilling rigs is also helpful in increasing production. The majority of its production is oil, but the company has a large portion of its natural gas hedged.