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

To: Teddy who wrote (21422)	5/5/1998 8:26:00 AM
From: Teddy	Respond to of 95453

TEXAS/INTERNATIONAL: Exxon said it will not cut its 1998 capital spending budget of more than $9 billion even though falling crude prices reduced first quarter earnings. The company said its investment program is driven by its longer-term view. MEXICO: Pemex will trim its 1998 budget by $120 million following the latest round of federal spending cuts for 1998. The latest round of cuts is not expected to affect Pemex's planned field development activities In the Bay of Campeche. AUSTRALIA: Santos' (STOSY) Cabernet 1 well tested 12.2 MMcf/d of gas and 12 b/d of condensate. The well is being suspended as a future producer. Cabernet is located close to existing infrastructure. NORWAY: Expenditures for exploration and production offshore Norway could fall as much as 30 percent from current levels over the next three years, according to speakers at IBC's Norwegian oil and gas export conference. Separately, next year will see Norway become the leader in subsea completions with 88 planned. U.S/CASPIAN SEA/RED SEA: Houston-based Zydeco Energy is considering plans to expand its exploration efforts into the Caspian Sea and Red Sea transition zone areas. Speaking at the 1998 Offshore Technology Conference in Houston, Zydeco Vice President Norman Neidell said Zydeco is considering moving into international areas where it could capitalize on knowledge and expertise gained in the Gulf of Mexico transition zone. U.S.: Cooper Cameron (RON) filed a shelf registration statement with the SEC to sell up to $500 million of any combination of debt securities and/or common and/or preferred stock. Cooper Cameron has no immediate plans to proceed with an offering once the registration statement becomes effective. Proceeds from any such sale would be used for general corporate purposes, including capital expenditures, acquisitions, stock repurchases and the repayment of outstanding debt.

To: Teddy who wrote (21422)	5/5/1998 8:40:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

Teddy -- Yes I think it is a good idea. Jackups have never had "term" contracts. But as Luigs said yesterday, they haven't had one without work for years. The gas fields in the GOM are getting smaller and smaller which means there must be more and more of them drilled. Gas prices have held firm. The big thing a lot of folks don't include in the forecast for oil supply is depletion. When you add depletion plus increasing demand you get an alarmingly tight picture for gas -- and oil. This is the herd of elephants Luigs referred to. The jackup fleet is getting old. I would like to see a few orders start getting place...especially if we were the brokers :)