NEWS snips from Offshore Data:
Teddy's note©: It looks bad out there, real bad. It could get worst. This sector could drop big time if this news ever hits The Street :
U.S. GULF: Jackup ENSCO 88 was awarded a one-well plus options contract from Fort-Worth Oil. Work will begin in early May after the rig completes its current contract with Pennzoil.
and what happens after that?
U.S. GULF: Australia's Petsec Energy plans to spend approximately $160 million exploring its shallow-water Gulf of
Mexico leases in 1998. Two wells are in progress - South Marsh Island Block 189/190 and High Island Block 307/308.
Petsec also plans to begin exploring the seven blocks on which it was high bidder in Central Gulf of Mexico Lease Sale 169, pending award of the leases by the MMS.
Yeah, they are planning for '98 and '99, but what is going to happen after that?
ANGOLA: Pride International received a letter of intent from Elf Angola for the construction and operation of a new
drillship. The contract is for an initial term of three years with two one-year options. Revenues generated over the firm
three-year portion of the contract are expected to exceed $200 million. The new rig will be named PRIDE EUROPE and will
be rated to work in up to 10,000 feet waters. Pride expects the rig to be built in South Korea for approximately $235 million.
The rig will begin operations in late-1999. Pride will form a joint venture company with Sonangol to build, own and operate
the rig. Pride will own at least 51 percent of the joint venture. The PRIDE EUROPE is the second newbuild drillship Pride will
operate for Elf Angola. The first, PRIDE AFRICA, also is jointly owned by Pride and Sonangol and will begin operations in
mid-1999 under a five-year contract. The PRIDE AFRICA is under construction at Hyundai Heavy Industries in Ulsan, South
Korea.
What is Pride thinking: they are spending $235 million for a rig that is contracted for only $200 million for 3 years... it could take them another six months to pay that one off.
ANGOLA: Esso Exploration Angola made a second deepwater discovery in Block 15 offshore Angola. The Marimba No. 1 well, which was drilled by Diamond Offshore semi OCEAN VALIANT in approximately 4,230 feet waters, tested an aggregate 6,800 b/d of oil. Last month, Esso announced a discovery with its Kissanje No. 1 well, which also was drilled in Block 15. Semi OCEAN VALIANT now is evaluating a
third well in the Block, Hungo 1, with additional drilling planned this year.
Not really big news, but since DO has had so much trouble lately, i thought it might be fair to mention that every once and a while they have a good day. Hint: SELL NOW!
PHILIPPINES: Western Australia's Socdet, Coplex Resources and Novus Petroleum plan to explore the Dimipac
prospect in GSEC 77 offshore Northwest Palawan in the Philippines. The prospect is thought to hold at least 54 million barrels
of oil. The initial well will be spud later this month by the semi ATWOOD FALCON.
Hey, don't even bother drilling: we have more oil than we will ever need.
IRELAND: Statoil and 15 other oil companies have launched a research program in deep waters offshore western Ireland.
The partners were awarded acreage in Ireland's Rockall Trough license area last year. One group of companies will spend about $1.08 million to study infrastructural support offshore Ireland. Another group of
companies will spend $6.4 million over the next four years to study meteorological, oceanographic and regional geology studies in
the part of the Atlantic Margin.
Drilling has not yet begun in the Rockall Trough area, but studies indicate significant hydrocarbon potential as extensions of
west of Shetland and Norwegian fields.
Yeah yeah yeah, everyone talks big... wait till they find out that the only rigs available are $200,000 per day: project canceled.
***more Bad News for DO***
U.S. GULF: Diamond Offshore jackup OCEAN SPUR completed a workover well in Ship Shoal Block 218 with Kerr-McGee. The rig, which is contracted with ADTI to October, is stacked on the location awaiting a contract.
This is the trend: they are stacking rigs on top of each other. Don't believe me? check out the Rig Utilization numbers Saturday: come Monday you won't be able to sell these stocks for a dollar |
