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

To: Czechsinthemail who wrote (14286)	3/10/1998 8:42:00 AM
From: Lucretius	Read Replies (1) \| Respond to of 95453

Now Baird, ya been doin so good. Why did ya have to go and say this:(ggg) <<My guess is that NE and CDG will do well. NE is heavily involved with international jackup rig contracts, many of them long-term contracts that are now rolling over at considerably higher dayrates. I'm not sure how much vulnerability they have to cutbacks in drilling projects as these contracts come up for renewal. I'm assuming most of their international drilling is oil drilling. The area of concern for possible weakness would most likely be in the jackup or submersible rigs. Perhaps a bigger risk might be slowups in new commitments for EVA4000 conversions if oil prices remain weak. CDG I haven't followed as closely, but I gather much of their drilling is based on shallow oil drilling that may be vulnerable. Others who know more of the details on these companies might be able to comment>> There aren't any more subs to be converted to EVA 4000s. There are now 5 EVA 4000 semisubs and the EVA 4000 program is all sold out. Each has a 3 to 5 yr contract. In any case, those would be the absolute last to go since those are the ultra-deep semi variety that everyone wants. NE has 3 shallow water subs that it recently reactivated (they could burn down and NE wouldn't care--they contribute about .05% of revenue). The remainder of the fleet is made of 4 drillships, 2 more semi's (Shelf 4 is currently stacked and being shopped around for a refurb) , and deepwater jackups in Africa, north sea, a couple in the Gulf, Ven, middle east/india. 75% of '98 is already contracted out per James Day as of last qtr earnings. The shallow jackups and submersibles are what everyone is wondering about--CDG,MDCO. -Lucretius