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

To: Lucretius who wrote (2989)	11/14/1997 11:30:00 PM
From: Big Dog	Read Replies (1) \| Respond to of 95453

That FGII order is new. I am surprised it didnt move the stock. I feel FGII will have a delayed reaction and make a strong up move on monday. I don't think anyone expected a semi order out of FGII before a few jackup orders. They are putting this new FREE Canadian yard to work right away...I will tell you guys over and over that JL Holloway is a money machine...just hide in the bushes and watch. The stock price may ebb and flow, but Holloway will make some Do Re Mi !!! mike

To: Lucretius who wrote (2989)	11/15/1997 12:16:00 AM
From: Bob (Hijacked)	Read Replies (1) \| Respond to of 95453

Offshore Data says 40 rigs under construction NEW YORK, Nov 14 (Reuters) - Offshore Data Services Inc said in a statement with its weekly rig count that at present 40 new mobile offshore drilling units are under construction. ''This month alone, plans for as many as eight new mobile offshore drilling rigs surfaced,'' the consultancy said. Of the eight, the only jackup being built does not have a contract, said Tom Marsh, drilling editor at Offshore Data. Marsh said that the long lead time for construction, most rigs will not be delivered until 1999, means that there is not going to be oversupply. Shares in the sector tumbled yesterday on worries that demand for rigs may slow.

To: Lucretius who wrote (2989)	11/15/1997 1:42:00 AM
From: Czechsinthemail	Respond to of 95453

I'm not sure that demand for the shallow drillers will be weak. My understanding was that Lehman's drilling analyst Chambers was indicating that deepwater and international would be particularly strong and that he expects worldwide exploration budget to be up in 1998.: "We believe that upstream expenditures will have a greater emphasis on deepwater and international markets in 1998." NE should be particularly strong with its conversions putting it in an even stronger deep drilling position. SDC should also do well based on their heavy international position. I think only about 3% of their revenue comes from North America. They commented on the international market providing higher rates plus generally longer contract runs so there is less downtime. Interestingly, NE had a particularly strong Friday performance (up 4.76%) while SDC was relatively weak (down 1.94%). I think SDC is being depressed by Middle East war scares, since they have a pretty high exposure in the region. I think it makes for a particularly attractive buying opportunity. Have a great weekend, Baird

To: Lucretius who wrote (2989)	11/15/1997 1:39:00 PM
From: Bill Li	Read Replies (1) \| Respond to of 95453

Morgan Stanley, Jefferies, Glodman Sacks and Alex Brown came out Thursdsay and Friday to defend oil drillers. They contribute the recent weakness in oil drillers to the following reasons: 1.Rumors about Chevron cutting capital spending in shallow water Gulf of Mexico.Concerns about softening of rates in the shallow-water GOM and a fear of a collapse in drilling activity. 2.Concerns about the potential impact of the devaluation of Southeast Asian currencies and the impact on oil consumption growth. 3.The year-end profit taking. The facts: * Chevron was probably not going to meet its 1997 capital spending plans of 6.0 billion due to a lack of available equipment and personnel and to the inability of the Nigerian government to pay for its portion of a project.This is actually a very bullish sign for Oil Service. More mportantly, the company expects the 1998 budget to be up 5-10%. * Peter Robertson, President Of Chevron USA Production Company stated in a recent presentation "I can affirm that the Gulf Of Mexico is_once again_where it belongs_at the forefront of a global industry." * They spoke with several of the offshore drillers, particularly the jackup companies. None Of The Offshore Drillers they Spoke With Saw Any Signs Of Weakness. In fact, they found quite the contrary: demands are increasing. * The impact of the SEA curency crisis on oil drillers will be very minimal, according to these analysts. * Year-end profit taking will be temporary and offers good buying opportunity. Good luck Bill