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

To: Big Dog who wrote (23108)	5/31/1998 12:11:00 PM
From: JHR	Respond to of 95453

Sounds like he's saying that reduced cash flow(since oil price is down?) and the high cost of service(our companies wont cut prices?) are as much the culprits as project feasibility. I'm with you I'm not sure what the hell he said except that he didn't deny it.

To: Big Dog who wrote (23108)	5/31/1998 12:40:00 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 95453

Big Dog; ? - concerning weakness in Jack Ups and contract rollovers... In GLM's annual report they listed all Rigs and the contract expirations dates. GLM has 23 jackups with 9 of the 23 having contracts expiring by June 1998 and a total of only 10 of the 23 expiring by year end 1998. As there has been some statements concerning softness in these ''renewal'' prices - should we be selecting and/or buying these companies based upon the percentages of contracts that they have that will be rolling over ? This info does not seem to be readily available, but per the post on CDG previously, it seems the info is out there - anyone with info on specific drillers please post ! Obviously the companies with the highest percentage of soon to be expiring contracts will face the highest potential of impacted earnings. GLM in their report made a very interesting statement (here's where the management expertise ''brings home the bacon''); they chose NOT to enter as long of term contracts in some areas (in J/Ups, semisubmersibles, platform rigs, drillships) as were ''offered'' them; as they beleived that higher pricing would be available in some areas (assuming deep water) in the near future and that they would maximize income by going shorter term in some of these areas (2 years vs. 3 or 5 years for example) and taking advantage of higher rates sooner than competitors who were locking in say 3-5 year contracts... very interesting ! The philosophy of locking in a 3-5 year contract at a ''reasonable'' price vs. going shorter term say 2 years and then getting (hopefully) an even higher renewal sooner - will be a huge factor for these companies. Any comments on this strategy - what companies have the most astute and savy mangement in these areas; or is it a ''no-brainer'' that some of these ultra-deep rigs will steadily command higher and higher rates, resulting in this being an all most guaranteed strategy - thereby making the drillers with the quickest rollovers in deep water the logical play? Another question; is the weakness in GOM Jack-Ups rates a cloud with a silver lining for the E & P companies or independants; would not this be a great time to lock in lower priced contracts NOW while the market is soft ? - and if we are only seeing ''softness'' in the contract pricing/dayrates; and NOT out of work rigs; shouldn't this bode well for the service stocks that work in the transition zone or shallow areas where they have been beaten down equally to the shallow drillers (like TCMS, OMNI and various seismic co's like VTSthat do substantial transition zone work ) ? What service companies are the most dominant in the transition zone/ shallow GOM areas ? - the ones beaten down with the drillers like CDG offer a play here ! Any comments on ''plays'' off of this scenario ? also; some companies seem to have higher International exposure versus GOM in their Jack Up market - comments on who has the best ''mix'' of business in this area ? I smell opportunity here as I'm sure the baby has been thrown out with the bathwater more than a few times here... identifying ''the baby's'' is the key !

To: Big Dog who wrote (23108)	5/31/1998 1:54:00 PM
From: pz	Read Replies (2) \| Respond to of 95453

Mike, <<<While gas storage may be fairly full (have not checked) kilowatt burn is running quite high.>> I'm not sure about the rest of the country, but the last week we have been close if not topping 100 degrees everyday, with no relief in sight. This is way too early to be having this kind of heat. The airconditioner is running non-stop. If this heat keeps up then I'm heading to your part of the country to the Schlitterbaun (sp.) or the river for some butt dipping...ggg Nothing like floating down the river in a tube. Regards, Paul