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

To: Big Dog who wrote (31748)	11/12/1998 3:58:00 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

Big See Mavis's piece today on DO ? Sounds like very significant revenue losses. Think it will affect the deepwater sector ? Has to cost a bundle to move it from the North Sea to the GOM. By Mavis Scanlon Staff Reporter 11/11/98 8:42 PM ET The drilling industry is all ears, waiting for a new contract announcement from Diamond Offshore (DO:NYSE) for its semisubmersible rig Ocean Alliance. The rig, a newer, fourth generation semisubmersible, has just completed a drilling contract with Shell, a division of Royal Dutch/Shell (RD:NYSE), and British Petroleum (BP:NYSE) in the North Sea. To have a rig of this size and capability -- it can drill in 5,000 feet of water -- idle for any period of time will surely be a blow to the thesis that low oil prices and spending cuts won't touch deep-water drilling. And if rigs like the Alliance set a new, lower standard for rates in its class, the ripple effects could further erode day rates in all rig classes. It also could hurt Diamond's revenues. "We have a multitude of opportunities," says Caren Steffes, a Diamond spokeswoman. "We do plan to announce it when we get a firm contract." The Alliance had been working for $140,000 per day, according to Steffes. A rumor has been going around that Diamond is working on a contract in Brazil, says Matt Conlan, who follows Diamond at Prudential Securities in Houston. Word is that the Alliance could begin a three-year contract in June at a day rate of about $150,000, he says. Bonus incentives could bring the total day rate of $160,000 to $165,000. Conlan has an accumulate rating on Diamond, and Prudential has no underwriting relationship with Diamond. Other analysts in Houston and New York, who asked not to be quoted, have mentioned Chevron (CHV:NYSE) and Statoil as possible operators. Chevron declined to comment; Statoil couldn't be reached. In the meantime, the Alliance would have to find work, and the rates it could garner in today's market are said to be $110,000 to $120,000 a day. In his earnings model, Conlan figures the rig will be idle until mid-February.

To: Big Dog who wrote (31748)	11/12/1998 4:17:00 PM
From: VLAD	Respond to of 95453

dog, Pissonme is a CNBC head at the NYSE. It is funny how a guy like this is supposed to interpret what the "market" is thinking and feeling. He is no different than any other head on CNBC--all hot air. All trading offices monitor CNBS cause the herd follows the hot ait on CNBC and thus it is a good trading tool to employ for the day trader. I have a computer software program that executes trades in about 2 seconds. When CNBC touts something I immediately buy it and then sell it about 5 minutes later. All the goats who call up their broker on the phone have already missed the short term pop up by the time they get an execution and the day traders have already taken their profits.