Friday March 6, 11:17 am Eastern Time Marine up as shallow drillers regain favor
NEW YORK, March 6 (Reuters) - Shares of Marine Drilling Cos Inc added 1-7/16 to 22-1/4 as the offshore drilling sector
again posted strong gains, but analysts discounted talk that Marine could be the next takeover target in the drilling sector.
''It looks like there is significant demand for shallow water jackups at the 200-250 foot range. Permits approved to drill wells
are up 20-25 pct in that category,'' said Robert Trace, analyst at Southcoast Capital.
While the deepwater drillers have posted strong gains as rates for rigs in that sector have roared ahead, the shallow water
sector has been left somewhat behind as the economics of the smaller fields found in the shallow water is more adversely
affected by low oil prices, analysts said.
Lewis Kreps, analyst at Dain Rauscher, said that investors were now reassessing the shallow water which had benefited
Marine, but noted that takeover talk was all around the sector.
Marine Drilling was not immediately available for comment.
In the seismic sector, Petroleum Geo-Services A/S (PGS.OL) (PGO - news) stock rose 10 percent in Oslo and its ADRs in
New York put on 1-7/16 to 60-1/4.
''Petroleum Geo Services stock is strong, people are putting that one in the ring,'' said one fund manager.
However, Byron Dunn, analyst at SBC Warburg Dillion Read, said that the Norwegian company was more likely to be an
acquiror than an acquiree. |
