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

To: Gary Burton who wrote (40462)	3/20/1999 10:51:00 AM
From: SargeK	Read Replies (1) \| Respond to of 95453

Helluva good idea BUT, I don't think it will happen. Like I suggested to Big Bull - Most people are not inclined to become "Little Bull" or "Second Bull".. FWIW Anyway, I have to bet back to my tax forms which I started on yesterday. Hey, I'm going to owe them a bunch. That's good! K

To: Gary Burton who wrote (40462)	3/20/1999 11:03:00 AM
From: Gary Burton	Read Replies (1) \| Respond to of 95453

Notes from Bear Stearns Feb17 note on SGO/OEI combo proforma( combo now trading at $5.25ish pre-merger)----Cash Flow to grow from $2.54 in 98 to $2.98 in 99 to $3.62 in 2000 (note-based on Mar19 closes, that equates to 1.75 p/cf multiple using oil and gas prices going forward based on forecasts a month ago pre-OPEC mtg)....we believe that there could be continued pressure on the stock because of uncertainty regarding integration and the fact that 400jobs are planned to be eliminated, which may be disruptive to operations....we also believe that, since estimated leverage at year end 99 is over 65% the combo has limited financial flexibilty to fund the development of numerous deepwater wells...on the other hand (the combo) is trading at a 21% discount to the group p/99cf multiple average and a 47% discount to the group EV/EBITDA 99 multiple......btw I see that Alex Brown (top oil analyst) and Dain Rauscher have Strong Buy ratings on the combo.