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Me too :) Grey Wolf got upgraded:
Grey Wolf $7.45 (GW - Cramer's Take - Stockpickr), which provides onshore contract drilling services to the oil and natural gas industry, has been upgraded to buy. The company's debt-to-equity ratio of 0.42, is below the industry average, implying successful management of debt. Its quick ratio of 4.06 demonstrates an ability to cover short-term cash needs. Net operating cash flow has increased 8.5% to $60.2 million from the year-ago quarter. Despite this increase, the Grey Wolf's cash flow growth rate still lags the industry average growth rate of 40%. At 42%, the company's gross profit margin is strong, but its net profit margin of 16% trails the industry average.
Share price has changed much from where it was a year ago. With a price-to-earnings ratio of 9.20, the stock is much cheaper than others in its sector. We believe the stock has good upside potential despite the fact that it has already risen in the past year. Grey Wolf had been rated hold since Nov. 13.
WHAT!?!! Did you feel it? Any damages?
GM Wildbill. Nice news from DeepDown yesterday. Schlumberger says they believe exploration and production SPENDING remain stronger for a longer period than they originally anticipated.
So it seems.
GM Stock Lobster. Mein Gott - an earthquake in the middle of America!! Isn't that extremely rare? Or are there earthquakes on East Coast too??
GM folks. Strong results from Caterpillar!
STRONG BUY.
GM Stuffit. Ship Financing (SFL) pays also a good dividend...
SLB 95.30 Schlumberger stumbles but remains upbeat
Shares in oil services firm Schlumberger (SLB) slumped after the company posted first-quarter earnings that came up a nickel shy of the Wall Street estimate. The New York-based driller made $1.3 billion, or $1.06 a share, from continuing operations for the quarter ended March 31, up from the year-ago $1.18 billion, or 96 cents a share. Analysts were looking for $1.11 a share, however, and the stock dropped 4% in early trading, despite CEO Andrew Gould’s bullish forecast for the company’s prospects, based in part on the past year’s surge in energy prices.
“In the absence of a severe global recession leading to a steep drop in demand, the thin cushion of excess oil supply and the failure to stem decline rates in many countries, coupled with the higher-than-expected drawdown of US natural gas storage, are all factors that lead us to conclude that growth will strengthen as the year progresses,” he said. “We remain convinced that current investment levels are insufficient to both stem decline and to explore and develop new reserves and, as a result, we anticipate that the current cycle of exploration and production spending will remain stronger for a longer period than we originally anticipated.”
SFL $28.99 - Dividend Reinvestment and Direct Stock Purchase Plan
Friday April 18, 4:11 am ET
HAMILTON, BERMUDA--(MARKET WIRE)--Apr 18, 2008 --
Press release from Ship Finance International Limited April 18, 2008
Ship Finance International Limited (NYSE:SFL - News) ("Ship Finance" or the "Company") is pleased to announce that the Company has filed a registration statement on Form F-3 relating to a Dividend Reinvestment and Direct Stock Purchase Plan ("DRIP/DSPP" or the "Plan").
The Plan will be available to individual investors who wish to reinvest cash dividends in additional shares of common stock and/or to purchase the Company's common stock. The plan is available to new and current stockholders of record in the U.S.
Plan highlights:
* If you are an existing shareholder, you may purchase
additional common shares by reinvesting all or a portion of the
dividends paid on your common shares.
* If you are an existing shareholder, you may make optional
cash investments of not less than $100 each and up to a maximum of
$10,000 per month. In some instances, we may permit optional cash
investments in excess of this maximum.
* If you are a new investor, you may join the Plan by making
an initial investment of not less than $250 and up to a maximum of
$10,000. In some instances, we may permit initial investments in
excess of this maximum.
* As a participant in the Plan, you may authorize electronic
deductions from your bank account for optional cash investments.
The offering is being made only by means of a prospectus. A prospectus related to the offering has been filed with the Securities and Exchange Commission and declared effective on April 15, 2008.
Mellon Bank, N.A will be the Plan Administrator, and copies of the prospectus may be obtained from Mellon Bank, N.A. at BNY Mellon Shareowner Services, c/o Mellon Investor Services, P.O. Box 358035, Pittsburgh, PA 15252-8035, telephone: (800) 301-3489 if you are in the United States or Canada, (201) 680-6578 if you are outside the United States or Canada, or (800) 231-5469 for the hearing impaired (TDD).
More information about the Plan can be found through the Company's website at http://www.shipfinance.no/IR/DRIP_DSPP.shtml. If you have further questions regarding the Plan, please contact BNY Mellon Shareholder Services for assistance.
The prospectus is can also be downloaded from the link below.
April 18, 2008
The Board of Directors
Ship Finance International Limited
Hamilton, Bermuda
Contact Persons:
Lars Solbakken: Chief Executive Officer, Ship Finance Management AS
+47 2311 4006 / +47 9119 8844
Ole B. Hjertaker: Chief Financial Officer, Ship Finance Management AS
+47 2311 4011 / +47 9014 1243
About Ship Finance
Ship Finance is a major ship owning company listed on the New York Stock Exchange (NYSE:SFL - News). Including newbuildings and announced acquisitions/disposals, Ship Finance has a fleet consisting of 72 vessels, including 35 crude oil tankers (VLCC and Suezmax), two chemical tankers, eight oil/bulk/ore vessels, 13 container vessels, three dry bulk carriers, two jack-up drilling rigs, six offshore supply vessels and three seismic vessels. The fleet is one of the largest in the world with a total cargo capacity of more than 11 million dwt. and most of the vessels are employed on long term charters.
More information can be found on the Company's website: www.shipfinance.org
CORRECTED-Three new US LNG terminals expected to open in April
Wed Apr 16, 2008 11:35am EDT
(Corrects April 11 story, reversing loading ports in paragraphs two and four)
NEW YORK, April 11 (Reuters) - Three new U.S. liquefied natural gas terminals, two on the Gulf Coast and one in the Northeast, are expected to receive their first deliveries in the next week, according to a Houston-based consulting firm.
Waterborne Energy, which monitors the global flow of liquefied gases, said the Sabine Pass terminal located in Louisiana near the Texas border, was expecting its inaugural delivery of super-cooled gas on April 12 on the vessel Celestine River, loaded in Nigeria.
Cheniere Energy (LNG.A: Quote, Profile, Research), parent of Sabine LNG, will own all of the terminal's 2.6 billion cubic feet per day of capacity until 2009, when Chevron (CVX.N: Quote, Profile, Research) and Total SA (TOTF.PA: Quote, Profile, Research) take 1 bcf each.
The Freeport LNG terminal located near Freeport, Texas, is expecting its first cargo aboard the tanker Excelsior from Trinidad on April 16.
Denver oilman Michael Smith, who owns 45 percent of the Freeport LNG terminal, is the managing partner, with Cheniere one of three minority stakeholders.
Conoco Phillips (COP.N: Quote, Profile, Research) has bought two-thirds of Freeport LNG's total capacity of 1.5 bcf, with the remaining third committed to Dow chemical (DOW.N: Quote, Profile, Research).
The launch of the two new terminals on the U.S. Gulf Coast will be the first onshore LNG ports opened in 25 years.
The long-awaited startup of Excelerate Energy's Northeast Gateway offshore terminal off the coast of Boston, Massachusetts, is also expected around April 16 aboard the tanker Excellence, loaded in Trinidad.
The offshore buoy system at Northeast Gateway, which was completed late last year, is capable of delivering up to 500 million cubic feet of natural gas daily to the New England market, or nearly 20 percent of regional demand.
LNG is natural gas cooled to liquid form so it can be loaded on special tankers. The liquid is then delivered to receiving terminals where it is regasified and pumped into onshore pipelines.
The U.S. currently has five operational LNG terminals, including another offshore terminal off Louisiana opened in 2005, with a total capacity of about 6 bcf per day, but total receipts so far this year have been running at less than 1 bcf daily.
New U.S. LNG terminals expected to come on line this year and next year could more than double current regasification capacity to about 13 bcf per day. (Reporting by Joe Silha)
CORRECTED-Three new US LNG terminals expected to open in April
Wed Apr 16, 2008 11:35am EDT
(Corrects April 11 story, reversing loading ports in paragraphs two and four)
NEW YORK, April 11 (Reuters) - Three new U.S. liquefied natural gas terminals, two on the Gulf Coast and one in the Northeast, are expected to receive their first deliveries in the next week, according to a Houston-based consulting firm.
Waterborne Energy, which monitors the global flow of liquefied gases, said the Sabine Pass terminal located in Louisiana near the Texas border, was expecting its inaugural delivery of super-cooled gas on April 12 on the vessel Celestine River, loaded in Nigeria.
Cheniere Energy (LNG.A: Quote, Profile, Research), parent of Sabine LNG, will own all of the terminal's 2.6 billion cubic feet per day of capacity until 2009, when Chevron (CVX.N: Quote, Profile, Research) and Total SA (TOTF.PA: Quote, Profile, Research) take 1 bcf each.
The Freeport LNG terminal located near Freeport, Texas, is expecting its first cargo aboard the tanker Excelsior from Trinidad on April 16.
Denver oilman Michael Smith, who owns 45 percent of the Freeport LNG terminal, is the managing partner, with Cheniere one of three minority stakeholders.
Conoco Phillips (COP.N: Quote, Profile, Research) has bought two-thirds of Freeport LNG's total capacity of 1.5 bcf, with the remaining third committed to Dow chemical (DOW.N: Quote, Profile, Research).
The launch of the two new terminals on the U.S. Gulf Coast will be the first onshore LNG ports opened in 25 years.
The long-awaited startup of Excelerate Energy's Northeast Gateway offshore terminal off the coast of Boston, Massachusetts, is also expected around April 16 aboard the tanker Excellence, loaded in Trinidad.
The offshore buoy system at Northeast Gateway, which was completed late last year, is capable of delivering up to 500 million cubic feet of natural gas daily to the New England market, or nearly 20 percent of regional demand.
LNG is natural gas cooled to liquid form so it can be loaded on special tankers. The liquid is then delivered to receiving terminals where it is regasified and pumped into onshore pipelines.
The U.S. currently has five operational LNG terminals, including another offshore terminal off Louisiana opened in 2005, with a total capacity of about 6 bcf per day, but total receipts so far this year have been running at less than 1 bcf daily.
New U.S. LNG terminals expected to come on line this year and next year could more than double current regasification capacity to about 13 bcf per day. (Reporting by Joe Silha)
FYI: Overseas Shipholding Group Announces U.S. Ownership of 77%
Wednesday April 16, 11:03 am ET
NEW YORK--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (NYSE: OSG - News), a market leader providing global energy transportation services, announced today that U.S. ownership of its common stock at the close of business on April 15, 2008 was 77 percent. This is the minimum percentage of shares that must be owned by United States citizens in order to preserve the status of OSG as a Jones Act company, in accordance with the Company’s charter and bylaws.
ADVERTISEMENT
Pursuant to OSG’s organizational documents, any share transfer that results in U.S. ownership falling below 77 percent is ineffective and cannot be consummated. Shareholders are required to certify as to their respective citizenship at the time of purchase. OSG has advised BNY Mellon Shareholder Services, its transfer agent, to strictly enforce this important ownership limitation.
ABOUT OSG
Overseas Shipholding Group, Inc. (NYSE: OSG - News), a Dow Jones Transportation Index company, is one of the largest publicly traded tanker companies in the world. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in New York City, NY. More information is available at www.osg.com.
Headlines from TradeWinds:
Fredriksen ups TUI stake
Norwegian shipping giant is now largest individual shareholder in Hapag Lloyd parent. Edit: 11.74% now.
Seadrill keeps buying
John Fredriksen offshore drilling arm has acquired another chunk of shares in Malaysia’s SapuraCrest. Edit: 17% now.
I have watched LNG-sector for some time, and read very much about the future need of transporting LNG. It will be big. There are several LNG-terminals built around the world - especially in Japan, but also in Europe because of the fear of Russian's whimps in gas supply via pipelines. In USA three new terminals are under construction.
Qatar is building a massive LNG-tanker fleet, but before those ships are delivered, the current LNG-fleet is quite small.
GLNG has ordered 2 new LNG-production tankers, which are like the terminals. The ship itself transfers the gas (from the sending port pipeline) into liquid, transports it over the ocean, and transfers the liquid into gas in the receiving port. No more very complicated and expensive terminals needed!
It will be interesting to follow how that will work out.
Read the LNG-part of the Barry Rogliano Shipping Report (message 543). That was very bullish on LNG-shipping.
Hellenic shipping through the centuries: ''The robot ships of Phaeakes''
Saturday, 12 April 2008
The roots of the Hellenic shipping activity go very far through the centuries. Some of them are the homeric poems and the orphic hymns. Today there are many automations in the modern vessels, but the question is what really happened in the past? it is very interesting to see what the grand poet Homer said about that, 3,000 years ago. The King of Phaeakon, Alkenoos, offered philoxenia in his palace to the ship wrecked Ulysees, and was asking him questions about his country in order to arrange for his repatriation. He also spoke with enthusiasm about the very advanced technology of the vessels and crafts of The Phaeacians.
Let's have a look in the book 8 of Odyssey verse 555-566*: 'Tell me your country, neighborhood and city, so that my ship can have their course in mind for. There are no Phaeacian ships with steer men, nor any steering oars, like all other ships. Our ships can understand the thoughts of men, and know all cities and the fertile fields of men, and cross the sea at highest speed, concealed by mist and cloud, and have no fear that they might suffer damage or destructions."
Someone might say that all of the above are pure mythology and nonsense which were created by the fantasy of the poet maker. There is also the other view which says that mythology is a real history codified, but not written.
Homer described real things and not fantasies. Concrete proof of this is the discovery of Ancient Troy, with the thesaurus of the king Priamos by the great archeologist Sleeman.
Homer talks about ships without steermen (captain) and steer oars; ships which understand the thoughts and the logic of people; ships which know all the cities and lands. And finally ships that are able to navigate through cloudy seas with safety.
Let’s suppose that everyone will agree that the mentioned ships and crafts look like robots, which have special mechanisms of propulsion, advanced computerized system able to understand and execute the thoughts of people. GPS (global position system), able to identify all lands and cities globally, or even ifr (instrument flying roots)
systems, and ils (instrumental landing systems) for landing or flying under cloudy conditions.
All the above would be more impressing, if we clarify that the said crafts could cover the distance between the land of Phaeakes (Florida, U.S.A.) and Hellas with return (about 11,700 miles) in one day. More for that we will say next time.
IDOMENEAS SARRIS, Msc.
*Sources
1) “11000 years Thalassocracy of Hellines” by Costas Doukas
2) “Wine colour sea” by Henrietta Mertz
3) “Homer's Odyssey by Denison Bengham Hull
4) “Odyssey” by Costas Doukas
First tanker docks at new Texas LNG port
Wednesday, 16 April 2008
The first tanker load of liquefied natural gas arrived Tuesday at the new Freeport LNG import terminal on the Texas Gulf Coast, a spokeswoman said. The tanker Excelsior, loaded in Nigeria, arrived at midday and will begin unloading LNG Thursday to prepare Freeport for commercial start-up by June 1, spokeswoman Janet Faz said. The terminal is one of three new U.S. LNG import facilities receiving first cargoes this month.
Denver oilman Michael Smith owns 45 percent of the $1-billion terminal, which will be able to send up to 1.5 billion cubic feet of gas per day to market.
Cheniere Energy Inc owns 30 percent, Texas Holdings (owned by Dow Chemical Co) 15 percent and Japan's Osaka Gas Co Ltd 10 percent.
Conoco Phillips Inc has bought two-thirds of the plant's total capacity, with the remaining third committed to Dow.
Pipes, tanks and other equipment at new LNG terminals must be cooled gradually before full operation because of the frigid temperature of the energy-rich cargo handled.
LNG is gas cooled at overseas production facilities to -260 degrees Fahrenheit to liquefy it for shipment overseas beyond the reach of pipelines.
The other two new U.S. terminals nearing operation are Sabine Pass LNG, 100 miles northeast of Freeport in Louisiana, and Northeast Gateway offshore of Boston, Massachusetts.
Cheniere-owned Sabine Pass received its first cargo Friday. Northeast Gateway, owned by Excelerate Energy LLC, is to receive its first cargo around Wednesday, analysts said.
Source: Reuters
It does not look like dry bulk shipping is slowing down:
Vale to boost Carajas shipping capacity by 50 pct
Tue Apr 15, 2008 6:26pm EDT
SAO PAULO, April 15 (Reuters) - Brazilian mining giant Vale (VALE5.SA: Quote, Profile, Research)(RIO.N: Quote, Profile, Research) expects to increase its shipping capacity on the railroad from its main iron ore mine in Carajas by about 50 percent with larger new trains that should go into operation by the end of May, a company executive said on Tuesday.
The new trains, which will have 330 cargo cars instead of 220 currently, are one of several aspects of Vale's growth strategy to eventually more than double its iron ore shipments out of the Ponta da Madeira port in northern Brazil.
"This is just the first step. We're going to double the size of Carajas," Mauricio Spinelli, Vale's head of logistics, told reporters in Sao Paulo.
Vale, the world's leading producer and exporter of iron ore, hopes to boost its shipping capacity in the region to 230 million tonnes a year by 2012 from 100 million tonnes currently.
The company plans to invest $12 billion in logistics in the next five years as it seeks to keep up with red-hot global demand for minerals and other commodities. (Reporting by Roberto Samora, Translated by Todd Benson; Editing by Marguerita Choy)
BQI $4.22 released winter drilling results, which were in accordance with the expectations and confirmed the continuity of the McMurray bitumen formation into Saskatchewan area.
Still long way before they can begin the production.
Oilsands and shales are very important oil resources. The latest oil discovery offshore Brazil is estimated to be the biggest in last 30 years: 33 mrd BOE (barrels of oil equivalent). But if the world's daily consumption of oil will continue in scale of 82-85 million barrels/day, this new discovery would suffice for one single year!
Canadian oil sands resources are estimated to ca 170 mrd BOE.
9:03AM Oilsands Quest announces conclusion of winter exploration program; drilling results continue to show continuity of bitumen resources over a large area (BQI) 4.25 : Co announces that the 2007/08 winter exploration program in the field concluded on March 26, 2008. The program demonstrated continued success on the co's contiguous oil sands exploration lands in Saskatchewan and Alberta. Overall, a total of 175 holes were drilled with 150 in Saskatchewan and 25 in the co's first exploration program conducted on its adjacent land holdings in Alberta. Evaluation of core and other data from these holes is being conducted. As anticipated, the drilling results continue to show continuity of bitumen resources over a large area. The drilled portion of the original Axe Lake Discovery area has increased in size from 36 sections (36 square miles) to 65 sections (65 square miles) as a result of the winter 2007/08 program. The exploration drilling in Alberta was completed over 24 sections (24 square miles). Of the 175 holes drilled, 155 were exploration and delineation holes in Saskatchewan and Alberta of which 103 encountered meaningful intercepts of bitumen-bearing McMurray formation (67 percent). The 175 holes drilled a total of 35,000 meters (114,850 feet).
GM Stock Lobster. Intel had strong sales numbers. No wonder because the Asians are buying computers now. Cell phones became their first connection to internet, and now many (millions) are beginning to afford a computer.
Good. I know that you know what you do :)
GM Stuffit. Do you own any SDRL? I think this is a good long time hold, they will distribute good divies too, and apparently for several years.
Milner. I hope you will get them. Be prepared to hefty dividends from SDRL :)
SDRL now $28.56 and ITCL $1.71 in Oslo.
Exxon hurries to fix the options to extend drilling contracts with Seadrill. These drilling units will be delivered in 2Q/08 and 3Q/08.
SDRL - Contract extensions for West Aquarius and West Polaris
Reference is made to the previously agreed contracts awarded by ExxonMobil regarding the semi-submersible drilling rig West Aquarius and the deepwater drillship West Polaris.
ExxonMobil has today exercised the option to extend the contract for West Aquarius from three to four years. Estimated contract value for West Aquarius for the full four-year period is approximately US$750 million, up from approximately US$579 million for the three-year period, including escalation from initial contract award up to present date.
In addition, ExxonMobil has awarded Seadrill one additional year to the existing three-year term for West Polaris. The contract value for the additional year is approximately US$219 million, bringing the total contract value for West Polaris for the four-year period to approximately US$815 million, including escalation from initial contract award up to present date.
West Polaris is currently under construction at Samsung Shipyard in South Korea, and West Aquarius is currently under construction at DSME (Daewoo Shipbuilding and Marine Engineering) in South Korea.
Published: 08:50 16.04.2008 GMT+2 /HUGIN /Source: Seadrill
Sounds logic! I do not know very well the Jones Act - except that it is quite strict in that that the shipper must be an American. Interesting to follow how JF handles this - as always. OSG could use the ITCL tankers in the coastal traffic. Good point.
I do not know if the ITCL tankers are operating under the Jones Act, but at least part of them are flagged in Hawaii so they may have that right. I was thinking JF is after OSG to get that right. You may be quite right in your theory. JF has converted several dirty tankers to clean ones, so he is apparently assuming increase in hauling petroleum.
ITCL closed at NOK 8.75 = USD 1.75 in Oslo. Volume 216k. Can you buy your stocks directly in Oslo? If dollar continues its downturn versus krona, you will benefit from that, too.
OSG has risen nicely after JF's interest was published. FRO's today's jump MAY hint to a possible agreement about FRO/OSG.
Good luck to you! At these prices that investment does not feel very risky :)
FRO FYI list of paid dollar dividends (does not include stock dividends):
22-Feb-08 $ 2.00 Dividend
26-Nov-07 $ 1.50 Dividend
10-Oct-07 $ 3.25 Dividend
6-Jun-07 $ 1.50 Dividend
6-Mar-07 $ 4.744 Dividend
5-Dec-06 $ 2.50 Dividend
29-Aug-06 $ 1.50 Dividend
8-Jun-06 $ 1.50 Dividend
2-Mar-06 $ 1.50 Dividend
25-Nov-05 $ 1.50 Dividend
1-Sep-05 $ 2.00 Dividend
8-Jun-05 $ 3.10 Dividend
3-Mar-05 $ 3.50 Dividend
3-Feb-05 $ 5.855 Dividend
23-Dec-04 $ 1.80 Dividend
29-Nov-04 $ 3.433 Dividend
23-Nov-04 $ 2.50 Dividend
8-Sep-04 $ 0.00 Dividend
26-Aug-04 $ 1.60 Dividend
17-Jun-04 $ 8.31 Dividend
10-Mar-04 $ 4.50 Dividend
28-Nov-03 $ 1.30 Dividend
14-Aug-03 $ 1.10 Dividend
19-Jun-03 $ 1.00 Dividend
16-May-03 $ 1.00 Dividend
6-Mar-03 $ 0.15 Dividend
29-May-02 $ 0.05 Dividend
11-Mar-02 $ 0.20 Dividend
19-Nov-01 $ 0.10 Dividend
21-Aug-01 $ 0.40 Dividend
FRO over $50! Morgan Stanley has announced a cover for FRO. They maybe buying,
JF is not afraid of a glut in the tanker market. "They say" he is now out for 12 newbuild VLCC's - 4 has already been ordered with delivery in 2009-2010. In addition he has 10% of OSG. He will certainly have his say in tanker rate negotiations. If the prices go too low, he'll keep his ships in harbor.
GM Stock Lobster. This is big.
Carioca No Sing-Along: Petrobras Makes Discovery That Dwarfs Tupi
by Kerry Laird
Rigzone 4/14/2008
"It could be the world's biggest oil discovery in 30 years," said Brazil National Petroleum Agency (ANP) General Director Haroldo Lima. The palpable excitement surrounding ANP's April 14 response followed Lima as reporters clamored to find out more about the 33 billion boe in "Carioca."
Carioca, the name given to the discovery by Lima, contains what he said is five times the amount of the recently discovered Tupi. Carioca is located in the Santos basin offshore the state of Rio de Janeiro, west of Tupi in the BM-S-9 exploration block. Lima said the find should prove to be the world's third-largest oil deposit.
Estado newswire later said that Lima had in fact been referring to the Pao de Acucar (Sugar Loaf) field. Dow Jones reported that both names could be referring to the same oil reserve.
"If this were to be confirmed, it would be the biggest discovery ever made in the world," said Lima. Reports indicate that Lima's claims are based solely on reports. Lima would not comment as to whether the find represents in-place or recoverable oil.
Dow Jones reported that production from the subsalt area could be "very challenging and expensive" because it lies in 2,000 meters of water, below 5,000 meters of rock, sand and salt.
In November 2007, Petrobras stated that Tupi production could potentially reach 1 million bbl/d, but that the peak output would not arrive for another five to seven years. Oil and gas reserves at Tupi are estimated to be between 5 billion and 8 billion boe.
If the findings are confirmed, Brazil could surpass Nigeria, among others, as holding the most reserves.
Petrobras stated that more data would be needed to confirm the discovery. Petrobras, Repsol-YPF and BG Group collaborated in the discovery.
URL: http://www.rigzone.com/news/article.asp?a_id=60169
Re. big oil discovery
Seadrill's (SDRLF.pk) new sixth generation semisubmersible rigs are going to this district.
PSST! Norwegian little oil explorer Norse Energy Corp., in Oslo bourse NEC (NOK 5.50 = USD 1.10), in gray pinksheets NSEEF.pk ($0.96), owns several licenses in the same area (Carioca-field in Santos base).
BIG OIL DISCOVERY! Carioca No Sing-Along: Petrobras Makes Discovery That Dwarfs Tupi
by Kerry Laird
Rigzone 4/14/2008
"It could be the world's biggest oil discovery in 30 years," said Brazil National Petroleum Agency (ANP) General Director Haroldo Lima. The palpable excitement surrounding ANP's April 14 response followed Lima as reporters clamored to find out more about the 33 billion boe in "Carioca."
Carioca, the name given to the discovery by Lima, contains what he said is five times the amount of the recently discovered Tupi. Carioca is located in the Santos basin offshore the state of Rio de Janeiro, west of Tupi in the BM-S-9 exploration block. Lima said the find should prove to be the world's third-largest oil deposit.
Estado newswire later said that Lima had in fact been referring to the Pao de Acucar (Sugar Loaf) field. Dow Jones reported that both names could be referring to the same oil reserve.
"If this were to be confirmed, it would be the biggest discovery ever made in the world," said Lima. Reports indicate that Lima's claims are based solely on reports. Lima would not comment as to whether the find represents in-place or recoverable oil.
Dow Jones reported that production from the subsalt area could be "very challenging and expensive" because it lies in 2,000 meters of water, below 5,000 meters of rock, sand and salt.
In November 2007, Petrobras stated that Tupi production could potentially reach 1 million bbl/d, but that the peak output would not arrive for another five to seven years. Oil and gas reserves at Tupi are estimated to be between 5 billion and 8 billion boe.
If the findings are confirmed, Brazil could surpass Nigeria, among others, as holding the most reserves.
Petrobras stated that more data would be needed to confirm the discovery. Petrobras, Repsol-YPF and BG Group collaborated in the discovery.
URL: http://www.rigzone.com/news/article.asp?a_id=60169
Quite right, Milner, quite right. Now deepsea drilling is thrilling.
SDRL got a monster deal with Petrobras. Look at the chart and the stockprice, closed at NOK 145.00 = USD 29.00.
http://www.hegnar.no/netfonds/aksjekurser/
GM Wildbill. ITCL at NOK 8.30 = USD 1.66 now in Oslo. Low season for tankers.
NE $53.54 Noble Corporation Adds $4.0 Billion in Prospective Revenue Backlog From Five Deepwater Rigs in Brazil
SUGAR LAND, Texas, March 31 /PRNewswire-FirstCall/ -- Noble Corporation (NYSE: NE) today announced that it has secured a Memorandum of Understanding for contracts with a total revenue potential of approximately $4.0 billion over 29 rig years on its five deepwater rigs currently operating offshore Brazil for Petroleo Brasileiro S.A. -- PETROBRAS. Upon execution, these new contracts could increase Noble's total backlog to more than $10 billion. Potential revenue includes a one-year option on the Noble Paul Wolff and paid shipyard time during upgrades on three drillships and assumes earning the full amount of all performance bonuses. The contracts are subject to the approval of Petrobras' Top Management.
The five rigs' contract terms and potential revenues are:
-- Noble Paul Wolff, a fourth generation 9,200' water depth, dynamically
positioned semisubmersible, with a five-year primary term beginning in
November 2009. Including the one-year option and an 18% performance
bonus, the total revenue potential is $1.08 billion;
-- Noble Roger Eason, a 7,200' water depth, dynamically positioned
drillship, with a six-year term beginning March 2010 with revenue
potential of $888 million including a 15% performance bonus;
-- Noble Leo Segerius, a 5,600' water depth, dynamically positioned
drillship, with a six-year term beginning in the second or third
quarter of 2009 with revenue potential of $769 million including a 15%
performance bonus;
-- Noble Muravlenko, a 4,900' water depth, dynamically positioned
drillship, with a six-year term beginning March 2009 with revenue
potential of $744 million including a 15% performance bonus; and
-- Noble Therald Martin, a 3,900' water depth, conventionally moored
semisubmersible, with a five-year term beginning October 2010 with
revenue potential of $542 million including a 10% performance bonus.
David W. Williams, Chairman, Chief Executive Officer and President, said, "We are delighted to have the opportunity to continue to provide deep water drilling capability to Petrobras for years to come. With the award of these contracts, we will not only boost our overall fleet backlog to more than $10 billion, we will also be able to move forward with our planned upgrades on each of our three drillships. These upgrades, which are designed to enhance the reliability and operational performance of the rigs, are estimated to cost approximately $175 million per ship and will take each rig out of service for about 150 days. We are also pleased that Petrobras saw the value in our upgrade plans and decided to support the program by paying $90,000 per day for up to 150 days for each rig's scheduled shipyard stay."
"We expect to perform the upgrade work on the rigs sequentially and will begin ordering the required long lead equipment once the contracts are formalized. We believe these projects provide an impressive rate of return for the shareholders while enhancing our ability to satisfy our customer's present and future drilling requirements," Williams added.
In addition to the five rigs mentioned above, Noble's newbuild deepwater semisubmersible, the Noble Dave Beard, is scheduled to commence its five-year contract with Petrobras offshore Brazil in 2009.
Good morning everybody!
WEL $1.84 Boots & Coots: Going to blazes
Monday April 14, 6:20 am ET
SmallCapInvestor.com/Jennifer Allen
In a slow burn for the past few years, Boots & Coots International Well Control Inc. (AMEX:WEL - News) is ready for rapid oxidation. Give it air: the oilfield services company is set for a big 2008, looking to fire up profits in a volatile industry.
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Boots & Coots traces its history to Red Adair, legendary oil well firefighter who tamed flames in Kuwait in 1991 at age 75. Before that, he was the inspiration for John Wayne in the 1968 movie “Hellfighters.” From the Red Adair Company came his posse leaders Boots Hansen and Coots Matthews, who formed Boots & Coots in 1978.
With a reputation as a premier critical emergency responder, the company answered its loudest alarm in early 2003, when speculators bet Iraq would ignite its oil wells in response to the U.S. invasion. Boots & Coots handled some blowouts in the southern Iraqi oilfields, and shares spiked to $8 from less than $2 — ever so briefly — and fell back to flounce around near $2 ever since.
As the Iraq bell clanked, Boots & Coots listened. The company no longer handles only 911 calls, but is now the global number to dial for full-service help. It has built a well-intervention business to smooth the jagged revenues from its critical response operations. It provides pressure control and other services to onshore and offshore oil and gas companies in North America, South America, North Africa, West Africa and the Middle East.
By the end of 2007, the Houston, Texas-based company’s well-invention revenues were $92 million, and emergency response revenues $13.3 million, bringing the total to $105.3 million. What a reversal from 2005, when revenues for response were $15.7 million and intervention $13.9 million, for a total of $29.5 million. Revenues were $97 million in 2006.
“We were anticipating a dramatic rise in both the top line and bottom line for 2007 driven by higher activity/utilization and improved pricing, but WEL far surpassed our expectations,” Neal Dingmann, an analyst at Dahlman Rose and Co., wrote in mid-March.
“Management’s focus on growing the well-intervention segment has paid off,” he said, adding that Boots & Coots’ strong brand name should lend itself to its expanding services, such as the Safeguard business, which is its fastest growing business. The overall response business also should continue to boost the bottom line. Dingmann carries a “buy” rating with a target of $2.50 per share.
Safeguard provides maintenance, risk assessment, training and engineering services; in 2005, Safeguard services were introduced in India and last year the program entered Libya, Dubai and the Caspian Sea, and expanded in Algeria.
Like cowboys around a campfire, Boots & Coots is just warming up. For 2008, analysts expect earnings per share at $0.23, doubling the $0.11 of a year ago. Revenues are forecast at $147 million, up 40%. The company is getting its giddy-up going early: it sees first-quarter earnings at $0.06 to $0.07, compared with $0.01 in the same quarter last year. First-quarter results are expected May 5.
Shares closed Friday at $1.84 each, putting the company at a P/E ratio near 8, based on 2008 expectations. The stock has traded between $1.11 and $2.79 over the last 52 weeks.
Morgan Keegan analyst Michael Drickamer cited continued international expansion as a catalyst, including into North Africa, where a joint venture in Algeria may present opportunities in Libya. There also are well-intervention opportunities to enhance production, such as workover and snubbing operations in the Middle East.
Growth also will come as the rig-assist and rental-tool business expands into the Rockies and mid-continent, and redeployment of underutilized assets in the United States Gulf move into more profitable regions such as onshore U.S. areas and Algeria, according to Drickamer.
Drickamer carries an “outperform” rating on Boots & Coots, and also has a $2.50-per-share price target. He said that in “2007 growth initiatives positioned (the) company for significant 2008 expansion ... international exposure (is) a key benefit to investors.”
Big fire-putter-outer, but still a little guy in a very intense environment. Boots & Coots has market capitalization of just $139 million, far smaller than its many competitors, including the likes of $36-billion Halliburton Co. (NYSE:HAL - News). Although near record highs, oil prices can be capricious. Boots & Coots also is susceptible to other risks of the range: 37% of its business comes from just two customers and it gets 76% of its revenue from outside of the United States.
International business, expected to expand in 2008, exposes the company to such risks as foreign exchange, political and economic stability, trade restrictions that may be imposed by the United States, and more. Venezuela accounted for 19% of revenue in 2007 and Algeria 20%.
Aside from the risks, balance sheet numbers are moving in the right direction. Boots & Coots had $6.5 million cash on hand at the end of 2007, up from $5 million the prior year. Working capital was $34.7 million, up from $25.5 million. And debt to total capitalization was 26.7%, well in line with the industry.
Get a match. The kindling is dry.
SFL $27.65 Ship Finance (SFL - Cramer's Take - Stockpickr), which owns and operates vessels and offshore related assets, has been upgraded to buy. The company's gross profit margin is very high at 79% and its net profit margin of 43% significantly outperforms the industry average. Net operating cash flow has increased 16% to $41.4 million from the year-ago quarter.
For the fourth quarter, revenue dropped 4.3% to $122.3 million, and earnings per share declined 8.9% to 72 cents. The company has suffered a declining pattern of earnings per share over the past two years. However, for 2008, the market expects an improvement in full-year EPS to $2.39 from $2.30 in 2007. After a year of fluctuations, share price is about where it was a year ago. This has resulted in a P/E of 12.12, which makes the cheaper than the industry average. Ship Finance had been rated hold since July 27.
SDRL - up in Oslo 3.37% at $28.98 now - Seadrill secures US$4.1 billion of contracts in Brazil
Published: 08:51 14.04.2008 GMT+2 /HUGIN /Source: Seadrill Limited /OSE: SDRL /ISIN: BMG7945E1057
Seadrill today secured an unconditional Letter of Award for contracts with a total revenue potential of approximately US$4.1 billion over 18 rig years for three newbuild deepwater units with Petroleo Brasileiro S.A - Petrobras, in its capacity as operator of consortia of concession areas in Brazil. Upon execution, these new contracts will increase Seadrill's backlog to approximately US$12 billion.
The three separate drilling rig contracts' terms and potential revenues are:
West Eminence
The sixth generation, deepwater semi-submersible drilling rig is under construction at Samsung shipyard in South Korea. The rig will be delivered during the fourth quarter 2008 and start-up of operations offshore Brazil is scheduled for the first quarter 2009. Contract duration is six years, and contractual water depth is 2,400 meters. Including mobilization fee and five percent performance bonus, the total revenue potential is US$1.35 billion.
West Taurus
The sixth generation, deepwater semi-submersible drilling rig is under construction at the Jurong shipyard in Singapore. The rig is scheduled to be delivered during the fourth quarter 2008, and start-up of operations offshore Brazil is scheduled for the first quarter 2009. Contract duration is six years, and contractual water depth is 2,400 meters. Including mobilization fee and five percent performance bonus, the total revenue potential is US$1.42 billion.
West Orion
The sixth generation, deepwater semi-submersible drilling rig is under construction at the Jurong shipyard in Singapore. The rig is scheduled to be delivered during the second quarter 2010, and start-up of operations offshore Brazil is scheduled for the third quarter 2010. Contract duration is six years, and contractual water depth is 2,400 meters. Including mobilization fee and five percent performance bonus, the total revenue potential is US$1.35 billion.
Kjell E Jacobsen, Chief Executive Officer in Seadrill Management AS said, "This is one of the most important assignments ever awarded to Seadrill and will increase our contract backlog to more than US$12 billion. We look forward to satisfy Petrobras' future drilling requirements with our newest and most advanced drilling units. Brazil will become one of the strategically most important areas of operations for the Company in the years to come."
Including the three drilling units mentioned above, Seadrill's newbuild deepwater drillship West Polaris is scheduled to commence its drilling assignment offshore Brazil in the third quarter 2008.
The contracts are subject to final contract wording.
Analyst contact:
Jim Dåtland
Vice President Investor Relations
Seadrill Management AS
+47 51 30 99 19
Media contact:
Kjell E Jacobsen
Chief Executive Officer
Seadrill Management AS
+47 51 30 99 19
Seadrill Limited
Hamilton, Bermuda
April 14, 2008
APIO.ob This little company has reported several positive quarterly results - and gone nowhere. There maybe a reason for that - I have not done any DD - but somehow it feels there simply is too much companies and too few buyers.
The same thing I have wondered concerning NIHK.
GM Stock Lobster. I have not yet looked into the news about GE, but it caught my attention because GE has been a kind of an icon of Western economy to me. Does this mean that the globalization (= Asia) is beginning to shake GE too!
Barry Roglio's shipyards report showed even clearer that Korea and China (over 3000 shipyards!!) have wiped away the European shipyards. Shipbuilding was a big basic industry in Europe - and now we have left only 2-3 yards, only building luxus cruisers and yachts because Asia has not had the skills and knowhow to build these kinds of vessels. I don't think it will take very long before the Chinese and Koreans have learned those skills, too.
They are dangerously ambitious and disciplined.