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

To: isopatch who wrote (87318)	2/15/2001 5:00:19 PM
From: cnyndwllr	Respond to of 95453

Isopatch re: <<What stroke of luck or generosity will bail him out this time???? >> Could there be a clue in the content of the previous post?????????? Ed whoops, make that previous TWO posts.

To: isopatch who wrote (87318)	2/15/2001 6:39:30 PM
From: excardog	Read Replies (1) \| Respond to of 95453

iso Not exactly what I expected but I like the forward guidance: South Texas Drilling & Exploration Inc. Reports Third Quarter Results SAN ANTONIO--(BUSINESS WIRE)--Feb. 15, 2001--South Texas Drilling & Exploration Inc. (OTCBB:STXD.OB - news) today reported the financial results for its third quarter ended Dec. 31, 2000. The Company reported net earnings of $195,817 or $0.02 per share (basic and diluted), compared to a net earnings of $9,954 or $(0.00) per share (basic and diluted) for the same period last year. Revenues for the third quarter were $14.7 million, an increase of 104% from $7.2 million in the second quarter of fiscal year 2000. Earnings before interest, tax, depreciation and amortization (EBITDA) increased to $1,779,070 compared to $657,104 for the same quarter a year ago, an increase of over 170%. Average rig utilization for the third quarter ended Dec. 31, 2000 was 90% compared to 83% for the same period last year. Revenue days increased 66% to 991 days during the third quarter of fiscal 2001 compared to 598 days for the same period a year ago. Two rigs were removed from service for several weeks for upgrades and improvements during the quarter ended Dec. 31, 2000. For the nine months ended Dec. 31, 2000, the Company reported net earnings of $1,075,539, or $0.09 per share (diluted), compared to a net loss of $154,564, or $(0.03) per share (basic and diluted) for the same period last year. Revenues for the nine months were $35.8 million, an increase of 163% from $13.6 million in the first nine months of fiscal year 2000. Earnings before interest, tax, depreciation and amortization (EBITDA) increased to $4,310,126 compared to $1,473,669 for the same period a year ago, an increase of over 192%. Michael E. Little, chairman and chief executive officer, noted the primary reasons for the improved financial results in the third quarter were the Company's increased drilling margins per day and increased demand for drilling rigs. He further noted that, as dayrates continue to improve, the Company is moving to a higher mix of daywork contracts thus reducing its exposure on higher risk turnkey contracts. He also noted that the Company invested heavily to upgrade and improve two of its rigs during the quarter and continued this upgrade process on two additional rigs in January 2001. Additionally, Little reported that Bill Hibbetts, a former officer of the Company and director since 1984, has rejoined the Company as vice-president, secretary and chief accounting officer. Wm. Stacy Locke, president and chief financial officer, commented that the Company anticipates significant improvement in financial results in the fourth quarter ending March 31, 2001 and the new fiscal year beginning April 1, 2001. Problems on wells drilled on turnkey contracts have negatively impacted operating results in the second and third quarters of this fiscal year. Currently, the Company has 17% of its drilling fleet on turnkey contracts compared to approximately 51% during the first nine months of the year. The Company's current emphasis on daywork contracts will reduce earnings volatility and improve earnings predictability. Locke noted that current average dayrates have increased over 20% from the Company's fiscal third quarter. In addition, the Company has secured fixed rate long-term daywork contracts for several of its rigs. Most notable is a one-year contract for the Company's first IRI 1700E rig, a state-of-the-art 18,000 foot SCR rig being built by National Oilwell. The Company anticipates this contract with Pogo Producing Company to begin by June 1, 2001.