Cramer Says Rex Energy (REXX) to $40

June 11, 2008 8:13 AM EDT

On last night's Mad Money, Jim Cramer's first stock was Rex Energy (Nasdaq: REXX). Cramer's theme for the week is picking out "wildcatters", independent oil exploration companies looking to hit it big. Cramer said Rex is making all the right moves in its attempts to find oil and natural gas due to its new technology. Jim said Rex pumps chemicals into the ground in order to pull oil out of hard-to-reach places.

Cramer estimated that Rex's operations could yield up to 84 million barrels of oil, boosting the exploration company to $40. With shares of Rex closing at $27.05 yesterday, Cramer's target represents a potential return of about 48%.

Concluding the segment, Cramer said he believes Wall Street analysts are being "far too conservative" on the company's technology: most give it only a 33% success rate. Implying that consensus estimates will see upside as analysts become more constructive on Rex, Cramer called the stock a Buy.

Cramer Effect: in-tact. The positive mention by Cramer has boosted shares of Rex this morning. The stock is up nearly 5%, or $1.28, to $28.33 in pre-market trading.

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