Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Gameboy who wrote (55442)	11/26/1999 10:16:00 AM
From: SliderOnTheBlack	Read Replies (2) of 95453

OEI - hedging is misunderstood; Merrill reports says-"not negative"... OEI remains one of ,if not perhaps the best buy in the mid to large cap, balanced crude/gas E&P's. Merrill said in a recent report that their hedging is "NOT" negative... that "hindsight is allways 20:20" etc...his was prudent management in relation to their drilling program, cap ex spending and cash flow base etc... OEI has only 13% of its Crude Oil production hedged for year 2000 - and that is with a $20 "FLOOR" ! This company expects near peer group leading production increases of upwards of 15% in 2000. It's leverage to crude oil - with no under the market hedging in place going forward; is a strong catalyst to substantial upside going forward for those who believe that we will see $20+ crude oil sustained. For those who believe in the sustainability of crude oil prices and who want an E&P with balanced, if not slight overweighting to crude oil vs. nat gas; OEI remains perhaps the best choice. OEI is on a drilling success roll - this story has been totally ignored here. YTD - OEI has a 78% drilling success rate. 82% for development wells. 62% for Wildcat wells !!! They have 2 new recent discoveries and their offshore portfolio remains the strongest in their peer group. This one is giving us a chance to accumulate while the Street is asleep at the wheel - using the E&P Sector as Merrill quotes - "as currency" to rotate funds to other stronger momenteum oriented sectors - ie: tech. OEI has turned the balance sheet around; nailing strong results via the drillbit and will spud some major impact potential wildcats very soon as well as drill some high impact GOM wells in year 2000. Believe the numbers, believe the story - and beat the crowd to the party on this one... See you all @ $15+ OEI in Y2K Accumulating OEI UPR PXD NBL FST here fwiw.

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