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: Douglas V. Fant who wrote (81384)	12/12/2000 7:41:16 AM
From: kodiak_bull	Read Replies (3) of 95453

A little good news for PGO holders? PGS rallies on speculation company to split up OSLO, Dec 12 (Reuters) - Shares in Norwegian oil and gas services firm Petroleum Geo-Services (PGS) <PGS.OL> <PGO.N> jumped more than nine percent on Tuesday as analysts speculated the company might split into two. "There is talk about splitting the company in two," said Orkla Enskilda analyst Aasulv Tveitereid. "Two separate units would make operations more effective." "The way the sector is today I think it would be reasonable to separate floating platform production and seismic operations from each other," he added. The stock, which only last week hit a two-year low of 88 Norwegian crowns on concerns over future earnings, was last up nine crowns at its intraday high of 102. "I think it would be positive if they split it but I am a little uncertain whether they are willing to do that. We will have to see what they are going to do," DNB Markets analyst Tor Vinje said. Vinje, who like Tveitereid was positive on the stock, said he thought the PGS rise could have been triggered by a research note by investment bank Merrill Lynch which he said focused on splitting. Other factors which could have contributed to the rise are Monday's five percent rise in the U.S. oil services index, although PGS's U.S.-listed stock rose only two percent. Tveitereid noted that PGS's partly owned subsidiary Spinnaker <SKE.N> rose 10 percent to $33.38 on Monday and that PGS has indicated in the past that it could sell at about $40.

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