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

To: Thean who wrote (5445)	12/16/1997 10:13:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 95453

Looks like they exercised an option for an extension from the previous K and kept their same rate. There were probably negotiations to lengthen the period of the extension in return for a small raise in dayrate although still not up to the current level. When RB got this K a year ago, dayrates were much lower than now. I'm sure they based the option on modestly increasing dayrates, but now that K is dated and way behind. EEX took advantage but wanted it even longer so as a compromise, RB got to raise the dayrate slightly. ALthough, all of this could be pure conjecture because I know nobody at these co's! As for the 200K dayrate. Remember some of that K estimated price is upfront fees, etc. So not all goes directly to the dayrate. However, on the bright side that's still one of the highest I've seen, and that 146.7 is assuming two years, but the K was for the longer of 8 wells or 2 years. In addition, there were option for 1 & 2 year extensions. Hence, the actual dayrate could be much higher. Good Luck Tomorrow! -Lucretius