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

To: Braddock Bull who wrote (26479)	7/25/1998 12:06:00 AM
From: VLAD	Read Replies (1) \| Respond to of 95453

Brad, I spoke with CDG's IR today: FWIW here is what I got: Currently ALL rigs are in use. The main profit pressure is going to be on their 12 gas drilling rigs in the Gulf of Mexico. These are the only rigs run on short term contracts. Day rates are now at the upper 20's (best rates last year were in the mid to upper 30s). The rest of their rigs are all contracted out in foreign countries for much longer time periods. Most of their foreign rigs are in Veneuzuela (12). Cliffs has 34 rigs in all including 1 in Mexico, 4 in Trinidad, 3 in Quatar, 1 in Nigeria and 1 in Brazil. They should make their First call estimates of .84. FY'98 is now projected at $3.70 to $3.80 which is .69 to .79 over FY'97 (about 25% annual growth). Book value $14.55. Cash over 55 million. At todays closing price of 20 3/4 we have a 1998 earnings PE of about 5.5 which is way below the sector average. I think CDG is beat the worst because of basket selling on such a small float of under 12 million shares. We closed today at critical support from back in March of 1997 and if this craziness continues we are soon to approach book value. I hope this info helps.