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

To: Teddy who wrote (13992)	3/6/1998 2:17:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Teddy, Thanks for the detail on drilling permits and drilling. My simpler take on it is that if you are at 100% utilization with no new jackups coming on into service and you see a 20 to 25% jump in permits, it gives strong circumstantial evidence that the full utilization will continue with enough demand to keep rig rates high. The implications are very positive for the shallow drillers because they carry lower trailing PE's than the deep drillers. If there is sufficient demand to substantially boost dayrates, the shallow drillers will be reflecting it soon. It adds a potential catapult to their prices if growth rates accelerate and multiples expand. Baird Baird