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

To: bw who wrote (19674)	4/20/1998 1:01:00 PM
From: waverider	Read Replies (1) \| Respond to of 95453

From the Unocal announcement: >>The capital spending program will continue to be reviewed throughout the year, and may change depending upon the level of drilling success, continued higher natural gas prices and timing of drilling rig availability.<< The press loves to focus on the negative (which has already been factored into our stocks). The above statement has a lot more meaning to me than their expected 10-15% cut in capital spending. A lot can change in our sector and NO one can predict with any certainty what the oil market will be doing this year. Just a gentle reminder to keep things in perspective.

To: bw who wrote (19674)	4/20/1998 1:52:00 PM
From: Bazmataz	Read Replies (1) \| Respond to of 95453

Could this be ANOTHER reason why GLM is DOWN?

To: bw who wrote (19674)	4/20/1998 2:02:00 PM
From: Teddy	Respond to of 95453

My "spin" on the Unocal spending announcement: The way i read it, it looks like they are continueing exploration so that they can add to reserves. So, unless i'm reading it wrong, this isn't bad news at all. "The revised capital spending forecast reflects the current crude price outlook and will impact short-term investment projects such as well workovers and some development drilling in current fields," said Roger C. Beach, Unocal chairman and chief executive officer. "We will continue with our long-term, high-value growth projects in Indonesia, Bangladesh, Argentina and the Caspian Sea, as well as our exploration of high-potential prospects in the Gulf of Mexico shelf and deepwater areas." Beach added that the cutback in short-term capital projects, coupled with first quarter production curtailments, would lower expectations for 1998 production from the U.S. Lower 48 to 178,000 barrels of oil equivalent (BOE) per day. This compares with an earlier forecast of about 188,000 BOE per day. "Our efforts in 1998 in the U.S. will focus on reserve replacement from our high-potential prospects, rather than short-term projects to boost production," Beach said. "Longer term, we can expect to see strong rates of growth in our annual production and reserve base."