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Gold/Mining/Energy : NE, Noble Drilling -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (176)	1/28/1998 7:24:00 AM
From: JBH	Read Replies (1) \| Respond to of 301

Morning everyone, Just thought I'd share this. :) Subject: NE Outlook from their IR dept. Date: Tue, Jan 27, 1998 00:40 EST From: OrndorfH Message-id: <19980127054000.AAA10029@ladder02.news.aol.com> Outlook The developments noted in this letter clearly indicate the worldwide demand for premium drilling assets is still very strong. Despite this strength, Noble Drilling is still faced with a number of challenges in 1998. From an operating, financial and personnel standpoint, the most important of these challenges is the delivery of the first EVA-4000O conversions in the second half of 1998. The financial impact of these conversions will begin to be manifested in 1998, and will become even more significant in 1999 and 2000. In addition to the conversions, the impact of contract rollovers will continue to be significant in 1998. The average daily rig revenue earned in the first quarter of 1997 was approximately $29,000 while the average daily rig revenue for the first quarter 1998 should exceed $46,000, and by year-end should approach $60,000. Excluding turnkey revenues, we have 85% of estimated revenues for 1998 under contract or firm commitments. The amount undercontract or firmly committed for 1999 excluding the turnkey drilling activity is almost 50% of estimated revenues. The mix of revenues is also changing considerably. In 1998, the estimated revenues from deepwater drilling rigs will represent slightly more than 10% of total revenues. In 1999, deepwater rig revenues will increase to almost 25% of total revenues and in the year 2000, assuming no significant changes in the current activity levels, deepwater rig revenues will represent approximately 40% of total revenues. This demonstrates the Company's focus on expanding our presence in this niche of the industry over the next two to three years. One caveat for investors - while we do not anticipate any significant change in activity levels due to near term weakness in oil and natural gas prices, if the current environment continues some projects particularly in the U.S. Gulf could be impacted. Please note that this letter and the attachment provided contain statements of the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future, which are forward looking statements. It is important to note that the Company's actual results could differ materially from those projected in the forward-looking statements. Additional information concerning risk factors that could cause actual results to differ materially from those in the forward looking statements is contained in the Company SEC filings, including, but not limited to, the Company's report on Form 10-K for the year ended December 31, 1996. Please feel free to call with any questions you may have. Steve Manz Investor Relations smanz@noblecorp.com Regards, Harvey Tualatin, OR 97062