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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: IndioBlues who wrote (54403)	11/10/1999 4:48:00 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

BBull, the TX announcement can be read as negative can't it? The same story, as reported by Reuters, says that TX is engaged in a "major shift" which will entail a "sharp reduction" in the production of oil and gas. NEW YORK, Nov 10 (Reuters) - Texaco Inc. (NYSE:TX - news) Chairman and Chief Executive Peter Bijur on Wednesday outlined a ``major shift' in the company's strategy, calling for a sharp reduction in projected growth of oil and natural gas production. Indio, looks like you didn't "cut and paste" the entire quote.<vbg> Its true that you could get a negative read on it since it doesn't go into much detail. Sounds to me like they are getting rid of some of the small stuff and going for bigger plays. Big projects will take years to bring to production so it probably will cut volume growth for a couple of years. The buyers will probably try to maximize the old properties. TX is probably going to be looking for elephants with the increased CAPEX. Both will need lots of help from OS companies. John

To: IndioBlues who wrote (54403)	11/10/1999 5:49:00 PM
From: BigBull	Read Replies (1) \| Respond to of 95453

Indio, TX sold about 4 billion worth of bonds a while back. Very soon thereafter the showed up in a big way at the Brazilian offshore auction. Mostly deepwater stuff. They then announced their plans to spend a good chunk of that money on exploration and infrastructure. All this in calendar year 99. They also recently announced large acquisitions off Angola. Again, deepwater. With the sale of their more marginal properties, it seems to me as though the are gearing for a full tilt deep water boogie in these large new fields. The language of the article you cited seemed strange. OK so they are announcing "CUTS in production"? Yeah, so what? they go into refining? Petrochemicals? I don't think so. The only other alternative is that they will only drill and not produce? C'est bizarre, don't you think? ESPECIALLY AT$25 BBL. No, what I think is that TX is doing is getting the jump on the competition, who all seem to be futzing around in merger land and sitting on their hands saying woe is me. IMO this will get straightened when they announce capex.