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May 18, 2006

Oil explorers and drillers enjoying good times, Thurs., May 18, 2006, 1:09 PM

"TheAdonis" is questioning the oil explorers and drillers. He says:

NBR and PTEN looking very 'cheap' here. Got off the phone with an oil+gas exploration entity in Texas and it seems both NBR and PTEN have huge backlogs on their rigs. Lots of exploration activity taking place in TX right now. Might this be a good time to take a long position in either of NBR or PTEN?

UBS issued a report on global oilfield services today that may shed some light. Download file

As for me, I'll wait until after options expiry at the earliest. I also want to see if oil " now in the high 60's and falling " levels off at say 67.

But I do like the RSI on the Daily " so I'm looking. And I do see that UBS thinks this is the best of times, and they do have a BUY rating on NBR;


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Posted by Posted by Bill Cara on May 18, 2006 01:09:50 PM | Category: 10 Energy

Discourse

Thanks Bill

Posted by: TheAdonis [TypeKey Profile Page] at May 18, 2006 1:31 PM [link]

Posted by: number2son [TypeKey Profile Page] at May 18, 2006 1:42 PM [link]

Returning from India the other day i sat next to a fellow who works on an deepwater drilling rig for Transocean. he told me 3 years ago lease raates for the rigs were about $160,000 per day and cost about $80,000 per day to operate. The current day lease rate is $540,000 per day. Cash flows are phenomenal and these things are leased out several years out.

Posted by: bbl [TypeKey Profile Page] at May 18, 2006 6:05 PM [link]