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

To: isopatch who wrote (87353)	2/15/2001 10:36:44 PM
From: Sharp_End_Of_Drill	Read Replies (2) \| Respond to of 95453

Ex-car & Iso, I was pretty disappointed in STXD's earnings. The revenue was great & exceeded my forecast, but earnings sucked. Two issues I reckon - one is the upgrades of the two rigs resulting in out of pocket expense & downtime, and two was lousy turnkey results. I've said it several times before, and at the risk of annoying anybody with ADTI or Cliffs - turnkey is bad business. As a cheezy, but pretty accurate, example you drill nine wells and pocket a million bucks profit each one and start to think you are the king. Logic says ramp up that effort and the sky's the limit. But then whammo, number ten has problems, you lose a couple of BHAs - spend a few weeks fishing, and you find yourself with a 10 million loss. I've seen it happen time and again. These numbers are exagerated for onshore wells, but you get the point. What was impressive though was the commitment to greatly decrease that business, and also the new rig & upgraded rigs coming on line. I like these guys longer term, and think a buyout is not unreasonable. Sharp P.S. Iso are you trying to pump the OSX by starting a food fight? That's dirty pool <g>.