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

To: marc chatman who wrote (18944)	4/14/1998 12:17:00 AM
From: pz	Read Replies (1) \| Respond to of 95453

From the GLM thread Message 4051771 To: All Spoke investor relations and this is the info they gave me: They are operating at 100% rig capacity. All rigs coming off of contracts in the 2nd Quarter are already re-leased out to either the same users or new ones. Dayrates: 1/1/98-1/31/98: $62,000/day 2/1/98-2/28/98: $64,000/day 3/1/98-3/31/98: $72,000/day I was pleasantly surprised. Tape delay of CC is at 1-800-839-2871 Frank \| Previous \| ------ \| Respond \|

To: marc chatman who wrote (18944)	4/14/1998 2:38:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

marc, I think that availability is the key- also the costs sunk into a deepwater prospect. You do not want to miss a drilling season window on a deepwater prospect since there are so few rigs available in the world market. So you lock in the deepwater rig for as long as is reasonable considering the day rates. RDC seeking shorter term contracts may not be too far off the mark. About a month ago we tried to bid a three- well package offshore Vietnam to the various offshore drilling companies. Now it wasn't the world's greatest bid package since you'd drill a well wait 30 days (analysis of data), drill another well, then wait 30 days, and then drill the final well. But a firm three-well commitment. Not one service company bid the package! (Noone wanted to move a rig to offshore Vietnam- too busy elsewhere). The best we could do was to get one company that has a rig in the Salkhalin Sea who usually winterizes the rig and stacks it during the winter to agree to move the rig southward and to drill the package. Is business slowing? Maybe- but the service companies seemed only interesting in bidding on their own terms.... Sincerely, Doug F.