NEWS Snips from Offshore Data:
Don't be fooled by a small increase in the stock prices yesterday: yesterday is gone andthe drilling industry is in big trouble. Rather that trying to guess the next stock to hit a 52 week high, the real question is who files Chapter 11 first.
HOUSTON/INTERNATIONAL: Boots & Coots International Well Control Inc. is broadening its oilpatch services to include engineering and consultation. The company formed a new division, Boots & Coots Engineering and Consulting, to provide staff engineering services for the drilling, completion and production phases of oil and gas projects as well as well site consultants and engineers. The division will have a network of experienced consultants in oil centers around the world who will be trained to respond customer requirements. The division will provide well recovery services and support to the traditional well control activities associated with blowouts and fires. The new operating unit will complement Boots & Coots' well control alliance with Halliburton and the recently introduced Wellsure insurance program. Boots & Coots Engineering and Consulting
initially will target markets in South America and the Far East.
Cool, WEL is now an Internet stock: "The division will have a network of
experienced consultants in oil centers around the world."
HOUSTON: The average day rate for Rowan Companies' rigs during the first quarter of 1998 increased to $62,000, a $2,700 or 5 percent increase over the fourth quarter of 1997 and a $16,800 or 37 percent
increase over the first quarter a year ago. Company officials said that rig day rates, growing manufacturing backlog and improving flight support operations should enable Rowan to achieve its 1998 financial. Rowan reported net income of $42.8 million on revenues of $183.9 million during the first quarter. This compared with net income of $4.2 million on revenues of $144.8 million for the same quarter last
year.
Don't be fooled, dayrates are falling.
U.S./INTERNATIONAL: Global Marine Chairman and CEO C. Russell Luigs believes that day rates on new contracts could weaken if utilization weakens. Luigs also noted that any softness in the market should be of modest duration and magnitude. Luigs' comments come on the heels of similar remarks from Ensco International Chairman and CEO Carl Thorne, who last week said that Ensco is starting to see the impact of lower oil prices and other factors, which could have a negative
effect on near-term day rates, utilization and financial results. Both companies recently reported record first quarter results.
It is really bad out there. Some company could go under.
U.S. GULF: EEX Corp. released jackup ROWAN-FT. WORTH. The rig is now stacked in West Cameron Block 38.
Jackup stacked. The industry has entered the decline phase.
U.S. GULF: R&B Falcon jackup GEORGE H. GALLOWAY completed a contract with W&T Offshore. The rig is waiting on location in East Cameron Block 299 to begin a contract with CNG Producing.
"waiting on location" = idle = out of work = the end is near.
U.S. GULF: Sundowner Offshore workover jackup DOLPHIN 105 completed a contract with Union Pacific Resources. The rig is on location in Viosca Knoll Block 117 for one well with OEDC Exploration and
Production.
Upon completion of the contract, the rig will go to drydock.
"drydock" = cut it into little pieces and sell it for scrap. |
