Seeking Alpha
Editor's notes: Recent developments for CWEI have driven the share price higher, but they've also strengthened the story significantly. Energy expert Richard Zeits says the risk/reward profile is skewed to the upside.

In an oil-hungry world, companies that provide access to significant oil resource potential sooner or later get investors' attention. This still remains to happen to Clayton Williams Energy (CWEI), a small-capitalization E&P operator ($0.9 billion equity value, $1.5 billion enterprise value) with large acreage positions in two major emerging horizontal oil plays: the stacked-pay Wolfbone/Wolfcamp play in the Delaware Basin (Reeves County) and the East Texas Eagle Ford Shale play.

Both plays are rapidly transitioning from the "maybe" category to the "certainly happening" category and promise to take prominent positions among the North American horizontal oil plays. Due to its operating critical mass in each of these two plays and relatively small equity capitalization, Clayton Williams's stock provides...

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