Constellation Energy Partners LLC (NYSE MKT: CEP) today provided an update on its 2012 capital plan and Mid-Continent drilling activity. The company’s drilling and recompletion activity is currently focused on oil potential in CEP’s existing asset base in the Cherokee Basin, with plans primarily targeting production from the Bartlesville, Skinner, Red Fork, Burgess and Mississippian zones. Activity also targets the Mississippian trend, where the company is currently completing four of 18 vertical wells planned during 2012 in the Bulldog, Bull Creek, Bluestem, Queen Anne, Coshehe, and Sand Creek projects in Osage County. Well costs are generally expected to range between $175,000 and $375,000 each depending on depth and completion zones. The company forecasts capital spending of between $15.0 million and $19.0 million in 2012. For the six months ended June 30, 2012, CEP completed 48 net wells and recompletions with an additional 24 net wells and recompletions in progress. Capital spending during that period totaled $6.9 million. Gross production for the wells and recompletions completed during the first six months of 2012 averaged 146 Bbls of oil and 228 Mcf of natural gas per day (or 184 BOE on a combined basis) in June 2012. Additional detail on the company’s 2012 drilling activity has been posted on CEP’s Web site ( www.constellationenergypartners.com) under the Investor Relations page. The company also announced that it will host a conference call at 3:00 p.m. (CDT) on Thursday, August 9, 2012 to discuss second quarter 2012 results, including today’s drilling update. The company expects to release its second quarter 2012 earnings before the market opens that day. To participate in the conference call, analysts, investors, media and the public in the U.S. may dial (800) 857-0653 shortly before 3:00 p.m. (CDT). The international phone number is (773) 799-3268. The conference password is PARTNERS.
Shares of Constellation Energy Partners (AMEX:CEP) have taken a tremendous swing upward. The stock is trading at $3.10 as of 9:34 a.m. ET, 21.1% above Tuesday's closing price of $2.56. Volume is at 38,204, 0.7 times the daily average of 58,200.