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Gold/Mining/Energy : Friede Goldman Halter (FGH) -- Ignore unavailable to you. Want to Upgrade?

To: SargeK who wrote (54)	3/31/2000 10:11:00 PM
From: SargeK	Read Replies (1) \| Respond to of 177

Friede Aiming for Brazilian Deep Water "Friede Goldman Offshore, Estaleiro Ilha Teaming Up for Brazilian Deepwater Projects GULFPORT, Miss.--(BUSINESS WIRE)--March 31, 2000--Friede Goldman Halter, Inc. (NYSE: FGH - news) today announced that its Friede Goldman Offshore division has signed a memorandum of understanding with Brazilian shipyard Estaleiro Ilha S.A. (EISA) of Rio de Janeiro. Under the memorandum, Friede Goldman Offshore and EISA intend to form a joint venture that will actively pursue offshore energy projects in Brazil and other parts of the world with Friede Goldman Offshore serving as prime contractor and EISA providing fabrication services. EISA has long been known as Brazil's leading shipyard, with the capabilities of building any size vessel or offshore structure. Friede Goldman Offshore is North America's leading builder of semisubmersibles, with six deepwater drilling rigs either delivered or under construction. ``We look forward to working with EISA as a partner in Brazil, one of the great frontiers of the deepwater energy industry' said J. L. Holloway, chairman and chief executive officer of Friede Goldman Halter. ``I believe that EISA's skilled craftsmen and Friede Goldman Offshore's experience and designs will make a powerhouse in the Brazilian deepwater market." biz.yahoo.com Comment: Now that the clouds have been removed, I expect to see more releases such as the one above. Doesn't sound like a Company in trouble, does it? K Note; FGH stock price is now an explosion waiting to happen. We'll wake up some morning (perhaps next Monday) and find the Institutions have driven the price up several points. Problems solved, new business, reduced FLOAT = Happy Days on the Horizon!!!!!!!! Have a good weekend K

To: SargeK who wrote (54)	4/1/2000 1:24:00 AM
From: S. maltophilia	Read Replies (1) \| Respond to of 177

And now a word from the Dark Side <G> Pride has a 26.4% equity interest in a joint venture company organized to construct, own and operate four dynamically positioned, Amethyst-class semisubmersible drilling rigs. Two of the rigs, the Amethyst 6 and the Amethyst 7, are being constructed in South Korea and are expected to be delivered by the shipyard in June 2000. The other two rigs, the Amethyst 4 and Amethyst 5, are under construction in the U.S.; however, in early January 2000, the shipyard notified the joint venture that construction of the rigs was being suspended because of alleged delays in receiving detailed engineering work and the joint venture's previous rejection of the shipyard's requests for extensions of the construction contract delivery dates. The joint venture is actively pursuing a legal remedy for the shipyard's actions, which are believed to be in violation of the contracts. No prediction can be made as to whether the Amethyst 4 and the Amethyst 5 will be completed or, if completed, when they will be delivered. If the joint venture is unable to complete construction of the rigs, our ability to realize our equity investment in the joint venture could be impaired. The joint venture was formed to build, own and operate its four rigs under charter and service contracts with Petrobras having initial terms of six to eight years. Petrobras has threatened to cancel those contracts for late delivery of the rigs, and the joint venture has obtained a preliminary injunction in a Brazilian court against that cancellation. Furthermore, based on Petrobras' announced deepwater drilling program and related rig requirements, we believe that Petrobras likely will employ all of the joint venture's rigs upon completion; however, there can be no assurance that any of the four rigs will be chartered to Petrobras or to any other customer. If Petrobras were to successfully cancel the charters for the rigs, such cancellation would constitute an event of default under the joint venture company's financing arrangements that are providing substantially all of the financing for construction of the rigs. Pride has provided the lenders financing construction of the Amethyst 6 and Amethyst 7 with certain commitments and guarantees, the principal one being a guarantee for repayment of up to $32.4 million of loans aggregating up to $340 million. In November 1999, the joint venture issued $53 million of senior secured notes, which are partially secured by a Pride guarantee of up to $30 million. The $32.4 million Pride guarantee of borrowings under the credit facilities is separate from, and in addition to, Pride's guarantee of up to $30 million of the venture's senior secured notes. Pride's other commitments and guarantees to the lenders under the credit facilities for the Amethyst 6 and Amethyst 7 include (a) a guarantee of the cost overruns of up to an aggregate of $6 million; (b) a guarantee of the cost of the two rigs in excess of related refund guarantees supporting their construction contracts and (c) guarantees relating to the performance of our subsidiaries and affiliates under their management agreements relating to the rigs. If Petrobras accepts delivery of the joint venture's rigs under the existing charters, it will be entitled to impose late delivery penalties which, in the case of the Amethyst 6 and Amethyst 7, could be as much as $17.2 million based on the dates those rigs are currently expected to commence operations under their respective Petrobras charters. In connection with the credit facilities for the Amethyst 4 and Amethyst 5, Pride has guaranteed payment of up to $20.5 million of late delivery penalties that are accruing and may be payable under the charters relating to those two rigs. If the Amethyst 4 and Amethyst 5 are completed and delivered to Petrobras under their existing charters, the maximum late delivery penalties Petrobras would be entitled to impose for those rigs would be $56.6 million. Pride has no direct or indirect obligation to pay more than $20.5 million of late delivery penalties for any of the Amethyst rigs but may be called upon to advance its share if the venture does not have or is unable to obtain funds to pay those penalties or if Petrobras refuses to allow such penalties to be paid or charged against charter payments over the terms of the charters (as it has done in the past with offshore drilling rigs it has chartered from other firms). From PDE's 10K filed 3/31/00 freeedgar.com Do you know any other source for info from Petrodrill's side, or on the status of the Korean built rigs?