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

To: excardog who wrote (79888)	11/24/2000 4:12:29 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

excardog, Also the premium on oil & gas property acquisitions has risen from 2x to 3x annual revenue in late 1998 to 7x to 8x annual revenue in late 2000. This rise in the price of acquiring oil & gas properties also should drive companies to increase reserves through drilling since it is now the cheaper alternative to acquisition. Also there is another factor lurking here and hasn't been mentioned much- improved completion techniques. Improved completion techniques assures that more wells drilled are completed as producers- But also that these wells will be depleted more rapidly (time value of money). Thus with completion technology also a factor driving depletion trends, I believe that this technological improvement will also cause more rather than less new wells to be drilled.....