DAILEY PETROLEUM (DALY) Message Board

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Gold/Mining/Energy : DAILEY PETROLEUM (DALY)

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To: tom clewett who wrote (13)	3/25/1998 11:47:00 AM
From: Mr. Energy	Read Replies (1) of 23

Tom- DALY just announced that it is acquiring an LWD (logging-while-drilling) company in the U.K. This is significant because currently when DALY does a directional drilling job, they source the LWD tools from a third party. Now, they will be able to provide the tools themselves at around $3-5000 per-day-per-tool! Consequently, I think this increases the company's cash flow by around 15%, although I think it will take them about 4 months to integrate the business. It is still the cheapest stock in the sector that I see. The company still has ~$100 millon of cash on the books, so I would look for more acquisitions in the next few months. Stay in touch.

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