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

To: Alias Shrugged who wrote (28502)	8/28/1998 8:28:00 AM
From: J. Fred Donham	Read Replies (1) \| Respond to of 95453

RIG and FLC on the drillers side, TDW on the boats, and RD,TX, XON, KMG, AHC, BP, just to name a few participants in the Brasil deepwater market.

To: Alias Shrugged who wrote (28502)	8/28/1998 3:14:00 PM
From: Douglas V. Fant	Read Replies (2) \| Respond to of 95453

Mike, Sure! EVI IMO is a real buy right now- and I bought it @ $20/share and sold a Sep 20 call option for a dollar+, but I'll keep this one. Also BHI, and HAL are big in oilfield maintenance types of activities. Also consider BJS which does much non-drilling but rig-related workover, pulling jobs; in equipment look at RON or VRC- you need their equipment expertise to keep fields humming along.... On drillers I bought ESV strictly on a value play. I calculated jackup rigs to be worth about $18-20mm each at a minimum price (that was near the lowest valuation of jackup rigs inthe 1986-87 crunch. Current jackup rig values are actually twice that figure right now), and then looked at ESV's number of rigs and othe financial numbers and decided that ESV was a likely acquistion candidate. Also note, ESV does not only use it rigs to do well drilling- they do workover jobs offshore too. And as day rates drop, and new well drilling is scrapped, expect oil companies to increase field maintenance activities in order to maintain production levels. You know oil companies have customer oil/gas supply contracts the terms of which they have to meet too.... Sincerely, Doug F.