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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: AL R who wrote (4700)	2/19/1998 2:12:00 PM
From: Richard Saunders	Respond to of 24921

AL R. / quick answer YES (imo....). Also story is going to be (already is history so not really "going to be") more of a push towards development from exploration re: light oil angle. Spot market prices for WTI at Cushing for week ended Feb. 13/98 was $16.03us. Compare this to a year ago - prices for week ended 97/02/14 were $22.40us for WTI. Healthy year-over-year decline (28%ish) have many cos. refocussing their oil-hunt focus. "Story" is slightly rosier if you believe the media re: gas prospects. Hype re: increasing capacity will no doubt keep some of the gas players still trying to poke holes in the ground at a decent pace........ Realize above is filled with generalities - maybe someone who has recent contact with drilling association, etc. can add more complete picture.

To: AL R who wrote (4700)	2/19/1998 2:47:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 24921

I've spoken with people from the oil well contractors assn. who suggest that things are going along OK. Rig count seems to be holding up, too. No one is still talking about matching the '97 drilling figures (16,484 wells), but there's still lots of talk about the "second best" year on record. The guy had an interesting spin on investment strategy in the sector. He pointed out that there would be 100,000 producing wells in Alberta this year, and that the current situation strongly encourages workovers. So he's putting his money down on anything to do with service rigs.

To: AL R who wrote (4700)	2/19/1998 2:49:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 24921

Al R / Winter Drilling Winter drilling has been hampered by the unusual warm weather. Those companies with large operations in winter conditions only areas will be adversely effected. Road accessibility, ground conditions and equipment shortages will be the sub elements in company comments --- all brought about by everyone's favorite subject ----- El Nino. Primary complaint will be the price of oil. All these are legitimate concerns. We are already beginning to see that in company drilling updates and their reports.