Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Big Dog who wrote (23291)	6/2/1998 7:18:00 PM
From: Elmer	Read Replies (1) \| Respond to of 95453

Regarding ATW, I talked to a SR VP at the Company - cannot remember his name but he was listed on the press release. He told me that the impact is $2.5 - $3.0 million in lost REVENUES as the rig is being repaired. The rig will actually continue completing its current drilling program and then enter the yard (time has already been arranged) for a couple of weeks. The rig will then go onto its next drilling site. The only increase in expenses should be the $250,000 deductible. Bottom line, he sees the total impact being about $.10 to $.15 in EPS incurred over late June and early July (Thus, a little in the June quarter and a little in the Sept. quarter). Late today, First Boston did lower numbers a little more than the $.10 - $.15 to reflect a slightly lower dayrate outlook for ATW. As for what happened to the rig, it appears there was a fire in a room containing a lot of cables. However, the anlayst at First Boston also stated that the rig was hit by a supply boat. I'm not sure if the two events were related or not. I hope this helps. It sure doesn't seem to warrant losing over $3 per share today. FYI, the current dayrate on this rig is $110,000. Elmer