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

To: Frank who wrote (40771)	3/24/2005 8:51:57 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206223

Frank, more anecdotal fuel for the fire (pun intended!!). One company that I have made some drilling investments with has an offset well that they were planning to drill in the Fall, but Patterson (the company that they like to do business with) told them that unless they locked it in now they would have to pay another $1M for the well (instead of $6M total cost it would be $7M). The guy then started calling around to see what other alternatives were available, and found out that the lines were so long waiting for rigs that if he got in a new line now the well would not get drilled until next year.

To: Frank who wrote (40771)	3/25/2005 2:50:57 AM
From: jim_p	Read Replies (2) \| Respond to of 206223

Frank, At the peak of the cycle in 1979-80, you also had to sign a one or two year contract if you wanted to lease a land rig. At the time those type of deals were only done on offshore rigs. The offshore market was even tighter and a five year contract was the norm at their top of the cycle. That lasted about a year for land drillers and most of those contracts weren't honored when the bottom fell out of the market almost over night. Many of the five year contracts were also not honored. I think the only offshore driller that enforced the contracts at the time was RDC?? Any memory on this Big Dog?? Here we are 25 years later and back to the same market....hummmm??? Jim