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

To: wggm who wrote (14679)	3/12/1998 9:14:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 95453

1. Favorite other than NE.... well if you own NE, I'd add some land exposure. Don't settle for less than the best........NBR. And add some additional deepwater offshore, SDC. 2.They may control the barges, but the independents that use the barges won't pay high dayrates unless their economical. ie- their dayrates still go down. BTW--Wallstreet currently isn't as worried about dayrtes going down for offshore, more of a fear of growth stopping. 3. Keep in mind that natural gas is also drilled for in deepwater (more so actually) and not just shallow. Shallow water is not the only place that gas is found. However, gas will have to be drilled for in the GOM (US gas that is) one way or another. I think the shallow vs deep play is not an oil vs gas but more of a L-T K (3 to 5 yrs)w/ deep, as opposed to S-T (often monthly rollovers) w/ extremely shallow water. Earings predictability and consistency is the play. That's why (I'm harping) I like NE. Most of their growth over the next 3 yrs is locked into new L-T K's for rigs that are being upgraded in a very likely slow gowing dayrate environment. -Lucretius