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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: jim_p who wrote (40791)	3/27/2005 6:54:25 PM
From: Big Dog	Read Replies (3) of 206223

Jim, You are exactly right. The "sanctity" of a high day rate contract is valid only as long as oil/gas pricing (therefore day rates) remain high. Low day rates emerge, and the oil company says....contract? what contract? Yes, RDC sued the pants off BP and won big time for breach of contract. But RDC is the only company that would have the nerve to do such a thing. Frank...let me gently remind you of the low cost of entry to the land drilling business. While it may cost $130 million to build a jackup these days, the cost to build a BRAND NEW land drilling rig is less than ten percent of that number, maybe considerably less. Own the companies that sell the rig equipment, 'cause we are fixin' to see a rash of newbuilds come to market. ...and if anyone here would like to form a little bidness venture, we can order a few too! It's really not that difficult, huh Jim? The business is a cycle...ride it, don't fight it. Other than some Canadian trusts, I have zero energy exposure right now. big

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