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

To: Thean who wrote (14980)	3/16/1998 11:10:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 95453

Thean: <<<<1) "NE": They also happen to be present in both deep and shallow water at GOM.>>>> This is incorrect regarding NE. I wouldn't buy NE for a GOM play. There EVA 400 semi's have been K'd for the GOM, but they only have three deepwater jackups in the Gulf. the rest are in North Sea, Argentina, West Africa, Middle East, and India. NE has no shallow jackups. They do have 3 shallow submersibles, however. Their drillships are in the North Sea and off Argentina. That's the whole fleet. :) Just thought I'd straighten you out. Ya spreadin nasty rumors about 'ole NE. (ggg) As I think you see, they have much more of a global presence than most. :) -Lucretius

To: Thean who wrote (14980)	3/16/1998 11:17:00 PM
From: pz	Read Replies (1) \| Respond to of 95453

Info on GOM lease sale Thean, Here is some dated info on the GOM lease sale that tells more about it. Thursday March 12, 7:43 pm Eastern Time US Gulf lease sale may dampen oil industry spirits By David Chance NEW YORK, March 12 (Reuters) - A key test of the energy industry's resolve in the face of oil prices that have dropped to $14.00 a barrel will come next week when results of the latest Gulf of Mexico lease sale are announced in New Orleans. Analysts say the size of the U.S. Minerals Management Service (MMS) sale, some 25 percent smaller in terms of acreage than last year's record, will drizzle yet more disappointment on an industry that is trying to come to terms with a more than six dollar drop in oil prices since 1997's fourth quarter. ''This sale does not have the same quality of leases. It will be perceived by Wall Street as a disappointment,'' said Bud Tower, analyst at Howard Weil in New Orleans. The MMS will begin accepting bids for lease sale 169 on Friday March 13 for 4,180 blocks or 22.55 million acres which range from three to 200 miles (322 km) offshore in the central Gulf of Mexico outer continental shelf. The blocks are in water depths of up to 3,425 metres (10,580 feet) and according to the MMS, undiscovered recoverable hydrocarbons on unleased tracts are 17.5 million barrels of oil equivalent in 200-400 meters of water, 52.5 million boe in 800 meters and 87.5 million boe in more than 800 meters. The MMS says that there is continued interest in the sale, which comes in the wake of lease sale 168, which attracted a record number of bids and confirmed the rebirth of an area which had been known in the 1980s as the ''Dead Sea'' because of the nugatory level of oil and gas development. ''Lots of people are requesting final packages,'' said a spokeswoman for the MMS. ''We feel that it is going to be a healthy sale.'' While declining to be specific, major oil companies said that they were still interested in the lease sale. However, analysts are sceptical and say that the decline in oil prices means that many of the smaller players in the shallow water will see their cashflow and therefore their capital budgets crimped. Past lease sales have bolstered shares of oil drilling and equipment companies, confirming strong demand for rigs and pushing up the rates that drillers can charge for their services. The Standard & Poor's Oil Drilling Index hit an all-time closing high of 5,238.56 in November 1997, it is now languishing at 4,077.52 points as investors fret over whether lower oil prices will translate into fewer dollars for the drilllers. According to consultant Offshore Data Services, the supply demand balance for rigs in the Gulf remains extremely tight and the fleet utilisation rate is 97.7 percent. ''It is extremely difficult to tell what will happen in the sale. The level of preliminary interest appears to be higher than last year, but that does not necessarily translate into bids,'' said Tom Marsh at ODS. Key to the revival of the Gulf has been the deepwater, where Shell Oil Co, the U.S. unit of Royal Dutch/Shell Group (RD.AS) led the way in sale 168 with 102 tracts, British Petroleum Co Plc (quote from Yahoo! UK & Ireland: BP.L) with 79 and Exxon Corp (XON - news) with 66. Analysts say that the deepwater will again be the key and note that short-term declines in oil prices do not influence the economics of projects which could take five years to go from discovery to production. ''The deepwater players take a longer term view, the area that is likely to see the biggest impact from lower oil prices as smaller companies look at their budgets,'' said Marsh. biz.yahoo.com