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Microcap & Penny Stocks : OILEX (OLEX) -- Ignore unavailable to you. Want to Upgrade?

To: Richard L. Williams who wrote (3504)	6/17/1998 12:15:00 PM
From: Steve	Respond to of 4276

Richard, The application of portable swabbing to oil field production lowers lifting costs. The small operator who depends upon stripper wells and marginal wells is losing money this year. If they can lower their lifting costs they will be more likely to be profitable. The other added benefit is that all their pump jacks, motors, down hole tubing can be sold off to partially finance the acquisition of a swabbing truck. Surviving $15 a barrel oil for the next 2 years will take a lot of ingenuity. I disagree that $23 to $25 a barrel oil would improve sales of swabbers it might have the opposite effect because that gives the small operator a cushion so that lifting costs are a smaller percentage at the higher price and therefore there is less incentive to shift production methods. It is only when the small operator is against the wall that lowering lifting costs is of greater concern.