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

To: AltLar who wrote (40586)	3/22/1999 12:35:00 PM
From: Ditchdigger	Respond to of 95453

A.G.Edwards buy rec on FLC..(from CNBC)..DD (I believe also,HAL,SLB and trans ocean)

To: AltLar who wrote (40586)	3/22/1999 5:11:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 95453

Larry, Basically all companies have been in a "survival mode" for about the last 9 months on oil projects. The general rule of thumb followed by management is only to do an oil project if it pays out in 18 months. That includes new drills, redrills, reworks, well problems, cleanouts/frac jobs, injectors, etc. So yes a portfolio of wells that have gone down over the last 9 months sits there subject to the same economic analysis. But note that oil depletes at a slower rate than gas. Figure 5%/year decline in production from an oil well if you do no well work on it. Gas declines much more rapidly- roughly 20-30% annual decline in production from a gas well if you do nothing to it. So gas production will dip volume-wise more rapidly than oil production. But over time the oil production will decline too if you do not drill new wells... Also for new big fields, the biggest I can think of is in Kuwait with about 50-70 billions bbls of high quality sweet oil, offshore Angola and Nigeria, about 4-5 billion bbls....