Koil Energy Solutions Inc. (KLNG)

[fazoolius]

Sector Snap: Oil Service Shares Advance
Thursday February 28, 12:14 pm ET

http://biz.yahoo.com/ap/080228/oil_services_sector_snap.html?.v=1

Oilfield Service Shares Rise As Crude Returns Above $100; Halliburton Among Sector's Gainers

NEW YORK (AP) -- Shares of oil service providers rose Thursday as crude prices moved back above $100 a barrel.

The Philadelphia Oil Service Sector Index, a basket of oilfield service contractors and drill rig operators, increased 1.5 percent to 290.54. Broader indicators fell, with the Dow Jones industrial average sinking 1.2 percent to 12,552.79.

Oil prices rebounded from the previous day's sell-off as a weak dollar and concerns about inflation enticed investors to sock their money in the commodity. Light, sweet crude for April delivery rose $1.13 to $100.77 a barrel on the New York Mercantile Exchange.

Halliburton Co. was one of the sector's biggest gainers after RBC Capital Markets analyst Kurt Hallead said "industry sources have confirmed" that it and Schlumberger Ltd. have won much-sought-after contracts to carry out work on Saudi Arabia's huge Manifa project, an offshore heavy crude development.

Hallead said the size of the award remains unclear but is likely between $500 million and $1 billion. He estimates Schlumberger will receive about 60 percent of the work, with Halliburton capturing the rest.

Halliburton shares rose $1.13, or 3 percent, to $38.59. Schlumberger shares increased 88 cents to $89.13.

The two companies' gain would be rival Baker Hughes Inc.'s loss, however.

"Investors are likely to read this as in incremental negative to BHI's already lower than peer international growth expectations," Hallead wrote in a note to investors.

Baker Hughes shares fell 25 cents to $69.74.