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

To: Dennis who wrote (11368)	2/11/1998 9:53:00 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 95453

Dennis, NE is in a fairly strong position among the drillers by virtue of a conversion program that converts shallower drilling submersible rigs to deep drilling semisubmersibles. Since the dayrates on the semisubmersibles are much higher, these conversions provide a way of enhancing NE's drilling fleet more quickly and cheaply than would otherwise be possible. They should contribute to rapid increases in NE's earnings over the next few years. Since the deep drilling projects typically have longer contracts and there is currently a bigger supply shortage in deep drilling rigs, the increases in deep drilling exposure should make the company's revenue stream more predictable and probably safer. Although I would favor RIG over NE at current prices, particularly because of RIG's stronger position in ultra deep drilling, I think NE will probably do very well. good luck, Baird