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

To: Big Dog who wrote (66426)	5/18/2000 2:47:00 AM
From: Warpfactor	Read Replies (1) \| Respond to of 95453

Big, and other industry insiders: Can you answer some questions re: the industry? This would be a helpful exercise for novices on the board. 1) How do drillers make money? Is it entirely day rates? Do they not really care what the price of oil is, so long as they get paid? Also, do drillers staff a rig with their own people? I would assume so? But there must be some of the client's staff on board to give instructions on where to drill, etc.. And monitor progress as well? 2) What about E&P's? They presumably drill on land they lease? or own outright? When they drill offshore, do they rent rigs or do they have their own equipment? What percentage of E&P's drill offshore - it seems that most of the smaller ones are strictly land based. Ocean Energy, on the other hand, must be 100% offshore, by virtue of their name. DO E&P's make $$ by simply selling what they pull out of the ground at the going market rate? 3) Gas vs. Oil. Is the same equipment used in drilling for gas and oil? How is offshore gas transported? Pipeline I suppose? Is liquified Natural Gas a viable means of transporting it via tanker? Is this technology well developed? and is their a NG spot price above which the use of liquified NG is justifiable. 4) What are the most important valuation metrics when attempting to place a value on E&P's. I've seen several bandied about. I guess you start at PE and PEG. But these don't always work for cyclicals. Seems like I also here about price vs. proven reserves. Are "Proven reserves" accurate? Guess you need to play these against things like debt level and current production level. I belong to a "Toastmasters" organization, and I'm planning to do a speech/report on the current state of Natural Gas. This will bore people to tears of course, but it is my responsibility to make it interesting. TIA. Warren

To: Big Dog who wrote (66426)	5/18/2000 5:24:00 AM
From: Ditchdigger	Read Replies (1) \| Respond to of 95453

Hello Big Dog,,can you or anyone else provide me with any more info on this well? Pulled from the Yahoo CHK board "Chesapeake Operating Inc., 1-9 Della, NW SE NE of 9-5N-9W; 22,364,000 cu-ft gas pr day; TD 13,950" TIA,,DD (trying to figure out why the stock popped on absolutely huge volume,,looked like a short squeeze to me(I know, I know,a pumpers favorite line<lol>),perhaps some of these longtime short positions are finally being closed) From Yahoo Short Interest As of 10-Apr-2000 Shares Short 4.03M Percent of Float 5.3% Shares Short (Prior Month) 4.31M Short Ratio 8.26 Daily Volume 488.0K