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Re: DownWithPumpers post# 10008

Sunday, 04/29/2007 9:47:14 PM

Sunday, April 29, 2007 9:47:14 PM

Post# of 132365
Margins for the small operators are understandably linked to the cost of oil. When the price that a barrel of oil or a cubic meter of gas rises enough the margin becomes great enough to make these small plays profitable according to what I have been reading. WRNW stand to rework , among other things, wells that were shut down or abandoned when oil prices fell after the last domestic boom. Keep in mind that WRNW is not simply looking to extract and sell oil and NG, but also to provide drilling , maintenance and other services to operators in the industry. Should oil prices continue to make small O&G margins more attractive, does it not stand to reason the money will be there to contract these services? We know that 90% of these wells are small time outfits. That is a lot of potential service contracts.