This article originally appeared on RealMoney.com on Sept. 4, 2014 at 5:00 p.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.
Arabella Exploration (AXPLF) has been the shining star of my "Mad Money" portfolio. The warrants (AXLWF) that I own for that model portfolio and for my clients have more than doubled since the portfolio's inception in mid-January and more than that for most of my holders as I was buying the warrants aggressively around Christmas, ahead of Arabella's transition from a Special-purpose acquisition company (SPAC) to a public company.
Emerging companies, especially in energy, tend to grow in stages. This summer Arabella transitioned from the "idea" stage to the "execution" stage as the company's Emily Bell #1H well showed a high initial production rate (more than 1,100 barrels of oil equivalent per day), and, even more importantly, a solid 30-day production average rate of 482 boepd.
But with 10 wells (nine new-drills and one re-entry) remaining to be drilled under the company's current business plan, the question was always, how will the company finance the drilling? I've been asking that question of CEO Jason Hoisager and Director Bill Heyn for nearly a year. During our private meeting at EnerCom in Denver two weeks ago, their answer was, "We need to go to the airport." When a management team rushes out of a meeting, you know something is up. I was hoping it was something big, and they nailed it.