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

To: Lucretius who wrote (3281)	11/20/1997 12:59:00 AM
From: The Perfect Hedge	Read Replies (3) \| Respond to of 95453

L- HK getting a whipping tonight.If we get a bad market on top of this shallacking then see you at the South Pole.I'm am in total amazement at what has transpired this last week.These stocks have fallen off a cliff.GD

To: Lucretius who wrote (3281)	11/20/1997 1:57:00 AM
From: Michael Berkel	Respond to of 95453

"Picture perfect--classic panic sell off!" writes P Engr., the "guru" of the AOL oil&gas message board. "Thursday should have some follow through selling." After that he expects a turnaround and "begin the Feast!". "The fundamentals of this industry are very solid. Dayrates for land rigs are at 40% of replacement cost economics in the mid-continent region and are at around 60% of replacement costs in S. Tex and La.. The move has only just begun for the land contractors. Remember that in 1981, the last peak, we had 4650 land rigs running in this country. Today, there are only 1250 by the latest Reed census. Also, keep in mind that back then, with all of those rigs running, we just slightly replaced natural gas consummed that year!! And also, that for most of the past 16 years, we have NOT replaced consumption in this country. This has resulted in our natural gas reserve base dwindling to today's roughly 160 TCF. Meanwhile consumption is at around 23 TCF per year and is growing steadily at around 3% per year. HENCE $3/mcf gas--before winter has even started!!! Considering the facts of the matter, it becomes obvious that we are going to need to built ALOT of rigs to satisfy the wave of demand that began a year ago. The demand for land rigs will exceed supply for many many years to come. The cross-over of supply/demand is just now beginning---it will become extreme within the next 12-18 months and dayrates will surge!" Enjoy the Bargins!!!! P Engr.