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

To: Joe Stocks who wrote (6448)	1/2/1998 9:43:00 AM
From: HH	Read Replies (1) \| Respond to of 95453

Any one care to help me digest this? HOUSTON, December 15, 1997 -- Houston-based offshore drilling contractor Global Marine today reported that the company's worldwide SCORE, or Summary of Current Offshore Rig Economics, rose 1.5 percent from October to 70.3 percent in November as a strong rise in dayrates offshore West Africa led moderate increases in rates in other regions. Global Marine President and COO John G. Ryan noted, "Despite stock market concerns ranging from a possible Iraq/UN accord to the effects of El Nino, the offshore drilling business continues along a strongly improving trend. Record-high dayrates for both jackups and semisubmersibles in the West African region in November reflect this strength. Recent contract dayrates exceed $80,000 a day for 300-foot premium jackups and $180,000 a day for third-generation semisubmersibles, compared to $40,000 and $50,000, respectively, only two years ago." Global Marine's SCORE compares current offshore mobile drilling rig dayrates to the profitability of rates at the peak of the last offshore drilling cycle, in 1980-81, when speculative new rig construction was common. In the 1980-1981 period, when Global Marine's SCORE averaged 100 percent, new-contract dayrates equaled the sum of daily cash operating costs plus approximately $700 per day per million dollars invested. A separate SCORE is calculated for various types of rigs and regions to indicate the relative condition of rig markets. The regions included in the release, which is made available for publication on the third Monday of each month, are the U.S. Gulf of Mexico, the North Sea, West Africa, and Southeast Asia. Rig types include jackup and semisubmersible rigs. WORLDWIDE The November 1997 worldwide SCORE for all types of offshore drilling rigs worldwide rose 1.5 percent to 70.3 percent from 69.3 percent in October 1997. The November SCORE is a 19.0 percent improvement from November 1996 and a 98.5 percent increase from the same period five years ago. GULF OF MEXICO Global Marine's November SCORE for the Gulf of Mexico increased 1.5 percent to 60.8 percent from October's 59.9 percent. November's SCORE is a 16.4 percent increase from November 1996 and a 73.9 percent increase from five years ago. THE NORTH SEA Following October's 6.0 percent surge, the North Sea SCORE held steady at 82.4 percent in November. The region's SCORE is up 22.5 percent and 147.9 percent for the one-year and five-year periods, respectively. WEST AFRICA West Africa showed a 3.6 percent increase in its SCORE, from 68.8 percent in October to 71.3 percent in November. This region's SCORE has seen an 18.7 percent improvement from November of last year and a 62.9 percent increase from five years ago. SOUTHEAST ASIA Southeast Asia's SCORE rose 1.3 percent this month, from 62.4 percent in October to 63.2 percent in November 1997. The Southeast Asia region has seen a 15.9 percent increase in its SCORE from November of last year and a 67.5 percent increase from five years ago. JACKUPS With a 2.9 percent increase from October, the 79.2 percent November SCORE for jackups is 34.7 percent higher than it was a year ago and 86.6 percent higher than five years ago. SEMISUBMERSIBLES The SCORE for semisubmersibles rose 0.6 percent from October's 62.2 percent to 62.6 percent in November. Semisubmersibles have improved 4.8 percent over the last year and 131.8 percent over the last five years. Houston-based Global Marine is one of the largest offshore drilling contractors with a worldwide fleet of 31 mobile rigs including two rigs undergoing conversion for deepwater drilling. In addition, the company is the world's largest provider of offshore turnkey drilling services, employing approximately 15 additional rigs. Global Marine SCORE Summary of Current Offshore Rig Economics Nov-97 Current Month Previous Month % Change on Month % Change on Year % Change on Five Years By Region Gulf of Mexico 60.80 59.89 +1.5 +16.4 +73.9 North Sea 82.40 82.35 +0.1 +22.5 +147.9 West Africa 71.26 68.76 +3.6 +18.7 +62.9 Southeast Asia 63.19 62.39 +1.3 +15.9 +67.5 Worldwide 70.32 69.30 +1.5 +19.0 +98.5 By Type Jackups 79.19 76.98 +2.9 +34.7 +86.6 Semisubmersibles 62.64 62.24 +0.6 +4.8 +131.8 Thanks HH