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

To: marc chatman who wrote (25618)	7/13/1998 8:47:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 95453

Exactly what does SII do? it seems to me that SII, BJS would be a couple of takeover targets... I'd like to see SLB or HAL buy a driller(!) iqc.com Classic reversal formation happening....go DO!

To: marc chatman who wrote (25618)	7/13/1998 8:54:00 PM
From: P.Prazeres	Respond to of 95453

Oil Service Shares Fall on Concern About Rig Usage, Earnings New York, July 13 (Bloomberg) -- Shares of oilfield service and equipment companies fell to 52-week lows as the number of drilling rigs operating in the Gulf of Mexico dropped, and a drilling company posted disappointing earnings. The number of idle drilling rigs in the Gulf of Mexico tripled over the last month to 21, said Tom Marsh, drilling editor with Offshore Data Services, an oilfield consulting and research company. Crude oil prices on the New York Mercantile Exchange averaged almost 30 percent less in the second quarter of this year than in the year-ago period. Despite efforts by producing nations to cut output, prices averaged $14.01 a barrel, down from $19.94 a year earlier, cutting the money available for drilling. ''There's a lack of conviction that this decline in utilization rates will end,'' said Daniel Rice, a portfolio manager for State Street Research's Global Research Fund, of which oilfield companies make up about 17 percent. Rice said he is not selling his oilfield service and equipment shares because he expects oil prices will rise. Also today, Rowan Cos., which drills wells on land and offshore for oil exploration companies, said second-quarter earnings missed analyst estimates. Rowan said profit rose 9.4 percent to $44.4 million, or 50 cents a diluted share. Analysts expected earnings of 54 cents, based on a survey of analysts by First Call Corp. ''The negative earnings surprise underscored people's negative expectations for the group,'' said Janet Rasmussen, an analyst with Merrill Lynch Global Securities who has an ''accumulate'' rating on Rowan. The Houston-based contract drilling company also said lower oil prices could hurt its revenue. The Philadelphia Oil Service Sector Index of 15 stocks fell 2.72, or 3.2 percent, to 81.49. The Standard & Poor's index of six large oil service company stocks fell 100.73, or 2.7 percent, to 3699.50. Both were 52-week lows. Among the losers were Schlumberger Ltd., down 1 11/16 to 65 5/8; EVI Weatherford Inc., down 1 1/8 to 32 11/16; Western Atlas, down 2 1/8 to 79 3/16; Sante Fe International Corp., down 1 1/2 to 25 3/4, Diamond Offshore Drilling Inc., down 1 5/16 to 34 5/16; and Ensco International Inc., down 1 7/16 to 15 1/16. EVI, Sante Fe and Ensco closed at 52-week lows.