AI
Monday, July 07, 2008 3:02:14 PM
The new floating rigs being delivered in 08 will add 20% but I expect that some of the older rigs will not retire as planned.
Due to high demand and good contract rates, coupled with long lag time for anyone wishing to add a new drillrig not already contracted for build, there will be a few refit/refurb jobs done to get a few more years out of the older rigs.
Add in the well stimulation and reactivation of low-producing wells that are now profitable to operate and we could see effective market segment growth in the 30-40% YOY range.
If DDI captures a growing % of a growing market segment you can see the compounding effect possible.
FT, Mako, and Electrowave add entirely new segments of the market.
In a nutshell, there is tremendous upside potential here and we're in a very early stage of the development plan that is slated for Deep Down Inc.
edit- a bit of a non sequitur in equating drill rigs with subsea completion, but the end result is the same in terms of growth potential
Powerzone
Due to high demand and good contract rates, coupled with long lag time for anyone wishing to add a new drillrig not already contracted for build, there will be a few refit/refurb jobs done to get a few more years out of the older rigs.
Add in the well stimulation and reactivation of low-producing wells that are now profitable to operate and we could see effective market segment growth in the 30-40% YOY range.
If DDI captures a growing % of a growing market segment you can see the compounding effect possible.
FT, Mako, and Electrowave add entirely new segments of the market.
In a nutshell, there is tremendous upside potential here and we're in a very early stage of the development plan that is slated for Deep Down Inc.
edit- a bit of a non sequitur in equating drill rigs with subsea completion, but the end result is the same in terms of growth potential
Powerzone
It seems a bit rough lately.
