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

To: Snowshoe who wrote (35324)	1/18/1999 4:07:00 PM
From: jim black	Respond to of 95453

Question for the cognoscenti on the thread. I've been looking at some of the valuations of reserves of oil and gas in the ground as listed on the Valuline summaries, e.g., Pioneer Natural Resources(PXD) at about $9/sh has a market value of $1.4 Billion and reserves at $4.5B and Apache with cap of $2.5B has reserves of $2.56B, AND Grade A company Burlington(BR) has reserves of $4.8B with a market cap of $6B. I am intrigued with the idea of looking at these companies in these terms as longterm investments. Any thoughts form the regulars, e.g., Slider? Jim Black

To: Snowshoe who wrote (35324)	1/18/1999 4:39:00 PM
From: Cragganmore	Read Replies (1) \| Respond to of 95453

Drilling rig rates fall for eighth straight month HOUSTON, Jan 18 (Reuters) - Daily rental rates for offshore oil drilling rigs fell for the eighth consecutive month in December, drilling contractor Global Marine Inc. said on Monday. Global Marine(NYSE:GLM - news) said its SCORE index of worldwide dayrates for offshore rigs fell 9.6 percent to 50.66 in December from 56.02 in November. The December index was down 29.0 percent compared with December 1997 but 35.0 percent above its level of five years earlier. The table below shows the SCORE index for various regional markets and different types of drilling rigs. The index expresses the profitability of current dayrates as a percentage of the profitability of the rates drillers earned at the peak of the previous offshore drilling cycle in 1980-81. A SCORE value of 40 percent indicates that drillers are breaking even. A SCORE value of 60 percent indicates that drillers are operating profitably but that dayrates are not high enough to justify construction of new rigs. Dec 98 Nov 98 % change % change % change REGION on month one year five yrs Gulf of Mexico 32.83 40.71 -19.4 -47.4 -24.8 North Sea 63.31 67.29 -5.9 -23.2 +96.2 West Africa 57.17 58.81 -2.8 -21.3 +50.4 Southeast Asia 51.20 56.09 -8.7 -21.5 +26.7 Worldwide 50.66 56.02 -9.6 -29.0 +35.0 RIG TYPE Jackups 49.32 52.29 -5.7 -38.8 +13.0 Semisubmersibles 51.82 59.64 -13.1 -17.8 +75.0