Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Teddy who wrote (18284)	4/7/1998 7:59:00 AM
From: Gottfried	Read Replies (2) \| Respond to of 95453

Teddy, on rereading the TSC article there are 3 expiration dates for current contracts given: April 1., April 12. and May 1. Also, all contracts are said to be with Coastal. The contracts you found were with Pennzoil, Mobil and Seneca Resources. They may not be the same rigs. Nevertheless, as some have said, it's probably known to the Street. Thanks for your research. GM

To: Teddy who wrote (18284)	4/7/1998 5:18:00 PM
From: iandiareii	Read Replies (1) \| Respond to of 95453

Teddy-- From ESV's 10-K, here's the skinny on ESV / Coastal. None of this may be news to anyone except me. I present it a day late, and -- like most other investors -- many, many dollars short. I think those new contracts came on rigs not employed by Coastal. Offshore Data reported new work for Ensco 88, Ensco 95 and Ensco 51. According to ESV's 10-K, with data as of Feb. 1, Coastal's three jackups were Ensco's 81, 82 and 87. But, of course, none of this even matters if, as the I.R. rep claimed, they've got other jobs lined up for the newly free Coastal rigs. Business as usual? Also, this: Same 10-K lists $46,530 as the average dayrate ESV received for their Gulf jackups in 1997. According to Ms. Scanlon's article "rigs in a similar class to those that Ensco had contracted to Coastal were bringing in dayrates of between $55,000 and $73,000 in the Gulf." She also writes that the one rig Coastal chose to retain was "renewed through July at a dayrate in the high $60,000 range." I know that all jackups are not created equal, but it seems likely to me -- any way this gets sliced -- that ESV is, as expected, making a boatload more than their FY 97 average. If dayrates do get squeezed -- and Ms. Scanlon's article comes nowhere close to proving this supposition -- the dollar start point for negotiations has already been raised substantially. Bring on earnings, I say. ian -- your man for breaking news already broke