Clayton Williams Energy, Inc. (CWEI:NASDAQ) recently announced that it planned to increase its number of rigs in the Wolfbone formations.

In an attempt to target the the Bone Springs and Wolfcamp formations (Wolfbone) in Reeves County, Texas, the company will increase its rig count from seven to 11.

Clayton Williams has leased 20,000 acres and plans to add even more land through a drill to earn farm-out agreement with Chesapeake Exploration. Clayton Williams will earn 75 percent interest in 640 net acres for every well that it takes Chesapeake to the tanks for a 25 percent interest.

President and chief executive officer of the company, Clayton W. Williams, Jr., said that more data is needed to determine how things will play out.

"Early indications are encouraging, but we need more production data. We are accelerating drilling operations to meet the Chesapeake agreement and to further evaluate our acreage," he said in a release.

Drilling and completion operations have begun on 13 wells.

Reuters reports that Clayton Williams' 52-week high was $109.45, while its low was $41.55.