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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 (26551)	7/26/1998 3:15:00 PM
From: Big Dog	Read Replies (3) \| Respond to of 95453

marcus -- Fungible? Is that some new kind of mushroom? Clearly if it is a diversified company then different rules apply. Surely a company like FGII is much more than its hard assets. I am speaking of the "pure drillers". How those other companies are being valued is beyond my comprehension...other than oil price. You also have to realize that deepwater drilling is a very new market. There have been hardly ANY wells drilled in deep water. (Deep is a relative term, but generally thought to be above 3000 feet and in some cases above 5000 feet -- depends on who you are talking to and what you are talking about I guess.) Therefore, the companies that call themselves deepwater drillers are doing so in large part because they have decided to work that segment and have ordered the rigs. Don't think they have the experience, OR the personnel to man these rigs. There remains a critical shortage of engineers and drilling hands to bring this deepwater drilling "to market". If the companies with all these big rigs on order were asked to post the personnel roster for the rig when the rig is delivered -- they couldn't do it because those people haven't been hired yet. (Do you realize that FLC has 9 construction projects underway in 6 locations? Big job to manage all this and come in on time and in budget. Takes a big pile of engineers that were doing some other kind of work a year or so ago.) An experienced and staffed deepwater driller is a myth. But I have every confidence that in time these matters will work out. Business sometimes is done in the oil patch by getting the job and THEN figuring out how to do it. Re CXIPY -- I don't know of another public company that does the same business. There may be others, but I am not sure. Thanks for the nod on the newsletter! big jump.to