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

To: Big Dog who wrote (41503)	4/1/1999 6:16:00 PM
From: RealMuLan	Read Replies (2) \| Respond to of 95453

Maybe this is why NB Montgomery downgraded FLC and 3 other OS stocks today. techstocks.com

To: Big Dog who wrote (41503)	4/2/1999 4:38:00 AM
From: VLAD	Respond to of 95453

According to the 10k filed on 3/30/99, Vastar signed a contract in December 1998 for the RBS8D (3 years with a day rate of 200k). The projected cost is $350M and as of the time of the filing, FLC had only sunk 200k into the project. Maybe it would actually be good for FLC to get the contract cancelled early so they can collect the penalties and then have one less massive project that would require more borrowing. The part that I think may help FLC soon is an increased demand for natural gas. They have 18 jack up rigs and 3 submersibles stacked in the GOM. The analysts have all been calling for strong natural gas demand going into the second 1/2 of 1999. This certainly can have a big impact on FLC's earnings in the second 1/2 of 1999 if dayrates and rig counts increase.