Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bazmataz who wrote (8179)	1/15/1998 10:06:00 AM
From: mark pearson	Read Replies (1) \| Respond to of 95453

CEO Palmer says "looks real good for next 6 months." Said if oil tanks, drops below $15 for 60 days, then companies will start cutting exploration budgets. Doesn't expect that to happen in next 6 months. Says no one is talking about cutting spending plans at this time. Has suspended all turnkey drilling operations and does not anticipate getting back into it in near term. Says spec rigs like Gorilla V are built for very narrow niche with no competition and sees no risk. Gorilla V is under contract in North Sea in 3rd quarter.

To: Bazmataz who wrote (8179)	1/15/1998 10:14:00 AM
From: chuck weir	Respond to of 95453

Barry, the essence of what CEO Palmer (RDC) said is:1)next 6 months look real good; 2) 60% of their drilling is for gas; 3) regarding the price of oil: if it gets to $15/barrel and STAYS there for 60 days or so, there will be cut backs in drilling/exploration and RDC and others will be affected; 4) just back from U.K.---players there are optimistic about the industry and no talk about cutting back; 5) they have no turn key drilling contracts now and have not for 11 months and do not plan to have in future, however, will not rule this out for future; 6) spec rigs (gorilla) - designed for a small niche market (North Sea and Eastern Canada)...no possibility for competition from upgrades or re-builds; very confident this niche market will go forward. Gorilla 5 has been contracted. Another note on the charts, the weekly stochastics and RSI charts have been in synch on all major bottoms for the past several years; stochastics are at the bottom of their range while RSI is below 40. Good luck; Chuck