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: JZGalt who wrote (22826)	5/26/1998 11:41:00 AM
From: Big Dog	Read Replies (3) of 95453

SME holders -- FYI flwg report from ABG Securities of Stockholm: "Abandon Ship" The two drillships West Navion 1 and 2, 50% owned by SME are now estimated to cost more than USD 150 million above the original level and USD 100 million higher than the last estimate (following which the CEO resigned). The ships are now estimatd to cost between USD 470 and 490 each. They are also said to be 6-9 months delayed delivery. Also, West Future 2 will be delayed by some 6 months and costs are increased by USD 20 million to USD 300 million. On the lawsuit front the company seems to have got away with the cancellation of the SPU 550 without claims from the Japanese shipyard. However, it is not thought Esso will let SME off the hook as easily over the scandalous Balder FPSO. Esso has till the end of the year to decide. ABG recalculated the target value from NOK 164 to NOK 141 (-14%) based on the new information. "We advise investors to jump -- leave others to stay on board with the company. SELL Smedvig at the new, low levels." Dog Note: Rarely do you see an actual SELL recommendation. big

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