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

To: VLAD who wrote (38402)	2/26/1999 2:37:00 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

I hope you're right, but what if just one project is cancelled (for legitimate reasons OR NOT) or delayed? What if one of the rigs is not completed on time, or something is wrong with it? I keep thinking about the Jack Bates contract cancellation for "non-performance". What if the banks decide the stakes are too high? There are just too many "what ifs" for me to sleep comfortably at night. Still think they will have to dilute equity.

To: VLAD who wrote (38402)	2/26/1999 2:50:00 PM
From: dfloydr	Read Replies (1) \| Respond to of 95453

Re: FLC CCall: <<they planned on raising the rest of the needed cash through their bankers using the actual rigs being built and their drilling contracts as collateral>> Exactly right. The sound was terrible, but even through the warbling volume I sensed that the FLC execs are pretty convinced they will be able to finance as planned. They then discussed all the other options open to them ... selling non performing assets, other kinds of financing, etc.. None of their statements suggested they would have to go that route. Most of the new rigs are on contracts which result in ... I think they said ... near full payback. Unless the whole rig is junk in three years time, there should be room for financing.