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

To: upanddown who wrote (34832)	1/11/1999 7:02:00 PM
From: The Ox	Respond to of 95453

A point which has been discussed on this thread before is that a NG well's reserves usually gets used up very quickly, especially in relation to an oil well's. I will let someone within the industry give out the exact numbers but from my memory, NG wells tend to be used up within 3 to 4 years where the average Oil well may process for double or triple that time frame (Doug Fant, Bigdog, or anyone else please jump in...). Also, NG prices have held up very well in relation to oil which have kept the NG rigs usage up as oil rigs have continue to be shelved.

To: upanddown who wrote (34832)	1/11/1999 7:18:00 PM
From: Big Dog	Respond to of 95453

john -- I don't mean to exclude gas. Oil is a catch "oil" term for both. From a press release today -- there was this little paragraph that was the most important part: Additionally, Pride announced that the refurbishment of its jackup rig, Pride Kansas, has been completed and that the rig is currently mobilizing for work under a long-term contract in the U.S. Gulf of Mexico. Furthermore, the service contract for the rig has been amended. The rig was previously contracted for a term of two years, however, the Company and the customer have agreed to an amendment to the contract that provides for an extended term of four years at a daily rate of approximately $30,000. Basically they have reduced the day rate for a longer term. Smart thinking in my book. big loosbrock.com

To: upanddown who wrote (34832)	1/11/1999 7:18:00 PM
From: marc chatman	Read Replies (1) \| Respond to of 95453

Any thoughts regarding the critical price point for natural gas drilling? (Kind of like the equivalent of $15 oil?) What ever it is, as you point out, the chart has been looking very ugly -- a drop from $2.60 to $1.80 in about 3 months. Percentage-wise, that's the equivalent of a drop in crude from $15 to less than $10.50. And how much natural gas is used in the summer?