Paul - You were right on the Seadrill rigs. It appears that with the new PBR oil discovery, these rigs are in high demand now.
Seadrill Rises to Record on Brazil Oil-Rig Contracts
bloomberg.com
From the article:"...Brazil's Petroleo Brasileiro SA, also known as Petrobras, awarded Seadrill six-year contracts for three semi-submersible rigs to start operating offshore Brazil between the first quarter of 2009 and the third quarter of 2010. The orders will increase the company's backlog to more than $12 billion, up from $7.8 billion at the end of last year, Seadrill Chief Executive Officer Kjell Jacobsen said today in a statement.
``They signed three fantastic contracts with Petrobras at day rates averaging $100,000 above our expectations,' said Stian Eliassen, an analyst at Carnegie ASA in Oslo who has an ``outperform' rating on the shares. The daily rental rates for the rigs vary between $570,000 and $630,000, he said. ..."
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The market for these deep water drilling rigs are being bid up since companies have to wait until 2011 for delivery of new equipment. I believe that BOTH SeaDrill and OceanRig have new rigs on order for delivery after 2011.
Based on future demand, both these companies may still be a "value" opportunity with yesterdays announcement of the huge PBR oil discovery.
Floating rig market stays strong
energycurrent.com
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OceanRig AG 33% owned by DryShips reported a huge insider buy by Blue Concept AS. DryShips investment is up over 10% from their initial investment in Dec 2007. Their 33% holding may turn out to be a hidden "value" gem as insiders accumulate more stock.
ocean-rig.com
11.04.2008 - Primary insider transaction - Stavanger, Norway
"...Blue Concept AS, a company controlled 100 % by Geir Aune, Chairman of the Board of Ocean Rig ASA, has on April 10, 2008, rolled-over a forward contract earlier disclosed by stock exchange notice dated January 11, 2008. Under the forward contract, as rolled-over, Blue Concept AS will purchase 1,200,000 Ocean Rig shares at a price of NOK 49.93 on July 9, 2008.
Following this transaction Geir Aune and related parties owns 1,251,965 shares, holds 700,000 options in Ocean Rig and has a forward contract to buy 1,200,000 shares...."
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EKS |
