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

To: SliderOnTheBlack who wrote (67536)	6/2/2000 5:15:00 PM
From: Meridian	Respond to of 95453

Slider, TBDI owns 17 rigs, 8 > 13,000 ft, 4 > 15,000 ft. They also have oil and gas that has a PV of ~ $7 mm, unhedged production in the ~ $3-$4 mm range, and 27,000 acres, a quarter of which is undeveloped. CEO Tom Brown, of Tom Brown E&P (TMBR) is sick and may want to sell the company. Dain did a deal to accredited investors in '97 whereby 11 investors own stock excercisable at $11.00 and a Green Shoe of 36,250 at $13.20. I bet Dain would love to hook up PTEN and TBDI ... love those commissions on banking deals! TBDI looks cheap at $12.00. The stock traded at 3X EV/Sales in '97. If dayrates approach replacement costs, the stock will trade at 4-5X revenue of $45-$50 million (IMO), or in the high-$30's, low-$40's. There is no debt (thanks to '97 Dain deal), 4.8 mm shares, 5.2 mm dilluted, and for the KICKER they've got NOL's of $77 mm. Although from my understanding it's possible that if TBDI is purchased the full value of the NOL's will not be realized. Anyhow, TBDI looks to be a bite-sized purchase for PTEN ... and Dain would make $$$ from the banking commissions, make $$$ on the stock for its investors (which they can churn into other OSX names for more commissions), and lastly they make $$$ for their own account on the 36,250. Looks pretty convincing. TBDI/PTEN stock deal sometime within the next 6 months at a significantly higher price than $12.00! Gambler