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

To: WWS who wrote (71202)	8/19/2000 1:22:39 PM
From: Big Dog	Read Replies (2) \| Respond to of 95453

Now don't you guys go using tooooo much logic. Here is what happens when logic is carried too far: Two rednecks, Bubba and Cooter, decided that they weren't going anywhere in life and thought they should go to college to get ahead. Bubba goes in first, and the professor advises him to take math, history, and logic. "What's logic?" asked Bubba. The professor answered, "Let me give you an example. Do you own a weed-eater?" "I sure do," answered the redneck. Then I can assume, using logic, that you have a yard," replied the professor. "That's real good," the redneck responded in awe. The professor continued: "Logic will also tell me that since you have a yard, you also have a house." "Impressed, the redneck shouted, "AMAZIN'!" "And since you own a house, logic dictates that you have a wife." "Betty Mae! This is incredible!" (Bubba is obviously catching on.) "Finally, since you have a wife, logically I can assume that you are heterosexual," said the professor. "You're absolutely right! Why that's the most fascinatin' thing I ever heard of. I cain't wait to take this here logic class." Bubba, proud of the new world opening up to him, walked back into the hallway where Cooter is still waiting. "So what classes are ya takin'?" he asks. "Math, history, and logic," replies Bubba. "What in tarnation is logic?" "Let me give you an example. Do ya own a weed-eater?" "No." "You're queer, ain't ya?"

To: WWS who wrote (71202)	8/19/2000 3:53:40 PM
From: jim_p	Read Replies (1) \| Respond to of 95453

WWS, The only incentive needed for existing workover rigs to increase utilization and subsequently profit margins are high oil and to some extent gas prices, which we have had now for three quarters. The cost to perform a workover of an exiting well in nominal compared to the drilling of a new well. The average workover operation pays out in 1-3 months. Therefore the expectation of a decline in future oil prices should have no effect on the decision to perform a needed workover operation, which is not the case with land rigs. In addition, an oil well has a general need to be worked over from time to time to maintain maximum production which is not the case with a gas well. As the recovery expands and land rigs near 100% capacity, KEG's business will have an additional benefit in being called upon to perform the completion of news wells that are drilled. When land rigs are not in high demand, this operation is usually is performed by the land rig which drilled the well. KEG has some land rigs, but it is primarily a workover company. I have not been impressed with the results of the last two quarters and I am expecting dramatic improvements on Monday. If not, KEG will be history in my portfolio. After three quarters of record commodity prices and now an improved capital structure, KEG will be out of excuses come Monday. The workover business is not a glamorous business, it's the bottom of the barrel in the oil patch. Labor is and has always has been a very serious matter. Workover companies are so disparate that many employees are ex-cons, who can't get jobs anywhere else. It has the highest workers compensation rates of any business in the oil patch, due to the poor quality of the employees and the high turnover of employees. It's not uncommon for workers compensation to be the second highest cost of doing business behind salaries. Jim