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

To: 007 who wrote (21259)	5/3/1998 11:00:00 PM
From: Big Dog	Respond to of 95453

James, In short reply to an earlier post...Even considering my comments about the "new world order" in stock markets, I do not mean to suggest we won't see some dark days. We will. But I think "buy the dips" will prove to be the number one best investment strategy of the next many years. For all, FWIW, here is a sneak preview of a press release we will issue tmw...this is my first draft, so the final version may be a bit different... FOR IMMEDIATE RELEASE For More Information Contact: May 3, 1998 Michael Smith (713) 974-5505 NEXT WAVE OF NEW RIG ORDERS WILL BE DEPENDENT OF DISCOVERIES HOUSTON (Offshore Technology Conference) -- Speaking at the Offshore Technology Conference in Houston, TX, Michael Smith, president of R.S. Platou (USA), Inc. of Houston, said the next expansion wave for new deepwater offshore drilling rig construction will be based on exploratory drilling discoveries. In addressing the group, Mr. Smith pointed out that oil companies have committed in excess of ten billion dollars for exploratory drilling capacity in 5000 feet of water and greater in the U.S. Gulf of Mexico alone. This includes the multi-year contracts for drilling rigs on order, as well as ancillary services needed to carry out drilling operations. The next wave of new orders will be placed for deepwater drilling rigs as discoveries are made and oil companies have to contract rigs to meet the demand for development drilling. Mr. Smith said, "We do not expect oil companies will commit to drilling rig contracts today for the future demand resulting from exploratory drilling. However, the pent-up demand created by discovery successes will be the catalyst for the next wave of deepwater rig orders." Mr. Smith noted that the first rig of the current class of deepwater rig orders would not drill its first well until later this year. As more rigs are delivered and put into operation he expects the quality and number of discoveries to be impressive, thus leading to the next expansion wave for deepwater rig orders. R.S. Platou is an offshore brokerage and consulting company, serving clients since 1936. The company has offices in Houston, Oslo and Singapore. Mr. Smith is a Naval Architect and Engineer and heads the Houston office of R.S. Platou. As a consultant for offshore drilling contractors, Platou assists with the placement of orders for new construction at shipyards worldwide. Platou also works with drilling contractors and investors in the sale, purchase and financing of offshore drilling rigs. Note: Deepwater as referenced means water depths in excess of 5000 feet. -- 30 --