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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: rz who wrote (29)	3/19/2001 10:51:58 PM
From: Big Dog	Read Replies (1) \| Respond to of 206338

COD rates...Best I can recall, the "super jackup" class like COD's are fetching about $70,000 a day, maybe a little less. I will refresh my thinking on this tmw. Daily operating costs are about $15,000, maybe a bit higher. To build a new one would cost approx. $100 million and require 22-24 months. And there is only capacity for a handful of such rigs that could even think about being delivered in that time frame...order 6 and the delivery windows start stretching to 30 months and rising unless you use third or fourth tier shipyards. I don't think many folks placing rig orders will put themselves at risk of mucho problems this go-round of building by using 'risky' yards - yards that have little to no experience in building jackups, or that have considerable political/financial risks. And some yards simply do not want to build jackups...its a different cat than 'standard' shipyard work. Then there is the question of rig designs...all are proprietary and some yards don't like other folks building their design. This could be a big problem too...you find a yard, but can't find a design. But if any of you want to build a jackup or two, The Dog can get you to the front of the line. :) big

To: rz who wrote (29)	3/20/2001 9:06:18 AM
From: Frank	Read Replies (2) \| Respond to of 206338

rz--COD is building two rigs for about 110 million each. They have 65 million each from MARAD in guaranteed debt so they are in great financial shape. Dayrates were about 66k first quarter but are expected to be well over 70k in second half as adjustments are taking place each month--COD took no long term commitments and benefits from a rising dayrate climate. I have two positions in COD and will buy more on any dip- only problem is they only have three rigs working right now so an accident would have a significant impact---Frank