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

To: jbe who wrote (20399)	4/25/1998 10:34:00 PM
From: Captain James T. Kirk	Read Replies (1) \| Respond to of 95453

U.S. oil, natgas well drilling up 13 pct in Q1-API WASHINGTON, April 23 (Reuters) - The number of U.S. completed wells drilled in search of oil and natural gas totaled 7,059 during the first quarter, up 13 percent or 804 wells, from the same period a year ago, the American Petroleum Institute said Thursday. Natural gas well completions jumped 23 percent to 3,169, oil wells increased 10 percent to 2,661 and dry holes were down 2 percent at 1,228, the API said in its latest quarterly drilling statistics report. ''These increases in completions reflect the fact that drilling rig activity last year was up 21 percent from 1996,'' the API said. Separately, the amount of well footage drilled during the quarter increased by 4 million feet, or 12 percent, from last year to 38.4 million feet, according to the trade group

To: jbe who wrote (20399)	4/26/1998 10:04:00 AM
From: Gator II	Read Replies (1) \| Respond to of 95453

OT To jbe...you wrote: "...but each time TDW falls back to a lower level, and so on, down, down, down...on high volume. That's good, you say?" Response: Certainly NOT in the very short term, BUT, until the "overhang" shares owned by a determined seller blocking upward movement of a given company's common shares (the NORMAL direction for a viable company's stock movement over time) are acquired by new owners, a given company's stock CAN'T move higher ASSUMING it is heading in that direction. Therefore, the statement, "the HIGHER the volume...," the SOONER the blockage will be cleared. I really don't think this basic is questioned by most market experts of which I certainly don't claim to be. The intense pain comes about if an investor's stake in that same company is in a wasting asset (option) or if he/she is highly margined (because interest charges could eventually destroy any capital gains otherwise attainable if the stock does move on up) while waiting for the stock's market price to recover. Of course, if you don't think the stock is going to recover within a time frame that will make your investment viable, the sooner you sell, the better. The biggest problem we have as investors in the drilling segment, stipulating that they are deep, deep cyclicals, is knowing when the party is over and getting out before the stampede. Personally, I don't think the fat lady will sing for at least two or three more years (witness that virtually all drillers are being very restrained in adding rigs to their fleets and our segment's offshore oil alley, located in southern Louisiana, is just now starting to experience serious pain from the growth this boom has brought...at least, according to some recent posts here). Of course the Street looks ahead six months to a year, so we all must anticipate the beginning of the end and that's where its going to be extremely hard to make an objective and timely judgment. Gauging the opinions of those actually in the field, oil that is, who contribute to this forum, I don't think they collectively believe we are nearing the end yet either. Specifically re: TDW, if the party continues, they should recover. The real question is when and at what price you bought and whether it was on margin and if it was stock or options. Good luck... Comments? Gator II