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: Lost in New York who wrote (8749)	1/19/1998 2:55:00 PM
From: DNaber	Read Replies (1) of 95453

To All, Most of the deep and shallow water drillers had a great run last week, however the land drillers (such as UTI, PTEN, and BDI (lawsuit notwithstanding)) lagged. For those of you that have followed the drillers for the last few years- is this typical? During a recovery (I'm optimistically assuming one has started) can we expect the offshore drillers to recover first then be followed eventually by the land drillers? Or will the market have to see a strong recovery in oil prices before land drillers become attractive? It appears the street is not yet convinced all drillers represent value at these levels- and they are hedging their reentry into the sector by going into the offshore sector where long contract lengths and backlogs are the norm. They may be discounting the land drillers due to a perception that land drilling would be the first curtailed under continuing oil price pressure. Has anybody seen anything to indicate a slackening in land dayrates or utilization? Also, I've read that many of the land drillers wells are natural gas wells. This diversification would appear a plus. Your thoughts appreciated. Dave

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