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Energy
Partners Limited Near Total Depth on Important Exploratory Well Nearing
the end of its first year as a publicly traded entity, EPL gradually has been
shifting to more of an exploration emphasis.
It has scored three successes while the Mantle prospect was a dry hole.
Now the X 8-A prospect, identified in a springtime presentation on the
company's website, is about to be successful or not.
Potential net reserves may be 20 million barrels equivalent, more than
half the company's proven reserves. The
well has taken longer than expected while there has been no disclosure of
results so far. Should
the X 8-A prospect be dry, it would represent the absence of a catalyst for
stock price, but a normal cost of doing business. The company has additional promising prospects to drill.
An
investor presentation in New Orleans in late September was cancelled when air
travel was curtailed. Next EPL will
be part of an Oil Exploration Conference at the New York Society of Security
Analysts on October 23. Formerly
located on the 44th floor of the North Tower of the World Trade Center, the
NYSSA will hold the conference uptown. The stock is cheap and the financial risk relatively low. A positive surprise could have a powerful impact from current levels. Excerpt
from October 15, 2001; Meter Reader: Not-So-Smart Money Buys Natural Gas, Too |