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

To: JZGalt who wrote (12254)	2/20/1998 12:06:00 PM
From: Big Dog	Read Replies (2) \| Respond to of 95453

Hey Guys! Remember me? I have gotta tell you...this working crap is not a preferred way of life. I don't see how people do it every day every day. Not much new price wise on our stocks I see. I have been keeping one eye on them. I can report from the front that the offshore business is alive and well. Drilling contractors are continuing to evaluate newbuilding rigs. They continue to have a strong interest in expanding their fleets. They continue to be optimistic about the future prospects. One small note to those who feel the rigs under construction now (there are a total of 61) will negatively impact rig supply. The rigs being built now are, for the most part, the deepwater floaters. The demand for rigs with this capability did not exist not long ago. Therefore, the rig supply is not actually increasing, it is only growing to meet this NEW demand. The supply of smaller rigs remains pretty much the same. Plus do not look for many/any newbuilds in this smaller category. Due to attrition, this smaller fleet may actually start diminishing. These rigs are getting quite old. I will spend a day with an exec from FGII next week, maybe together with the president of MDCO. I have a couple of projects FGII may find interesting. My trouble now is that I am coming across sensitive and confidential information and I have to be careful about what I post here. Our office is deeply involved in a number of newbuild projects -- working with drilling contractors, shipyards and representing/marketing rig designs. One stock that I see as a longer term strong play is CXIPY. These are the offshore "plumbers". As you all know, deepwater is long lead time and oil companies don't just stop a project because the oil price dips a dollar or two. I thknk a company like CXIPY will be a laggard and not start showing its true potential for a while. After the discoveries are made, and after development plans are done, THEN they start hooking everything up. And that's where CXIPY come in. I own it and will be adding more. Someone asked the question about development drilling from semis. Yes, this can be done, to a certain extent. You can drill a few wells, but you generally don't drill the compliment of exploitation wells due to the expense. Normally you set the platform and drill from there. If you are going to produce the field, then you are going to install a platform. If you are going to install the platform, then it is much cheaper to drill from the platform rather than the expensive semi. So you just wait. I noticed that Trans Coastal Marine (TCMS I think) is one door down the hall from my office. I will try to keep in touch with you guys as much as I can, but it's tough. That's it for now...no signs of weakness. Miss you all. bd