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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 (45804)	6/2/1999 4:52:00 PM
From: paul feldman	Respond to of 95453

Merger Talk Pumps Oil Options Again By Erin Arvedlund Staff Reporter 6/2/99 2:04 PM ET A worrisome market, a four-day trading week and some fundamental changes in the oil and gas sector lent more attention than usual -- or perhaps even warranted -- to takeover and merger rumors among oil, related-equipment and exploration stock options. "There was some merger chatter surrounding Schlumberger (SLB:NYSE) earlier this week, and then of course, the Global Marine (GLM:NYSE)-Transocean Offshore (RIG:NYSE) rumors popped up Tuesday but were denied," said one Philadelphia-based options trader. "In particular, there were lots of August calls being sold in Schlumberger, with the remote possibility of a merger there and continued talk of consolidation in the industry." The call-selling strategy would serve to profit if Schlumberger stayed flat or fell in the wake of the company acquiring a smaller player. Volatility Index Today % Change 28.68 +2.72% Source: ILX Halter Marine (HLX:Amex) and Friede Goldman International (FGI:NYSE) signed a definitive agreement to merge in a stock swap announced Wednesday. Among the most actively traded oil-equipment options, R&B Falcon (FLC:NYSE) saw roughly 1,500 of its July 10 calls traded, up 1/8 ($12.50) to 11/16 ($68.75) against open interest of just 179 contracts. Shares of Falcon, which operates marine-based drilling rigs, were flat at 8 15/16. Put/Call Ratio Today (Noon) Previous Close 0.48 0.48 Source: ILX Stalled oil prices and the need for more companies to issue or refinance corporate debt has flagged other names in the industry as hungry for a merger or takeover, including Stone Energy (SGY:NYSE), Ocean Energy (OEI:NYSE), Barrett Resources (BRR:NYSE) and Newfield Exploration (NFX:NYSE). Otherwise, "it's absolutely dead this week, with no one willing to put on any big positions until after Friday," said another trader on the Pacific Exchange. --------------------------------------------------------------------------------