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Re: MikeDDKing post# 5065

Wednesday, 12/21/2005 9:53:13 PM

Wednesday, December 21, 2005 9:53:13 PM

Post# of 33753
SDRLF..
This is a tough one to project because they have enough capitol to sit on rig builds while the rates are still flying.. Example is the Lief Erickson which came off/on day rates at a $65,000.00/$235,000.00 difference.. There are now 11 rigs in this same position and when Sea Drill is fully deployed in the next 18 months it will have the most modern harsh, deep drill rigs in the world... Deposits and stand aside money avil on rigs contracted for are worth more than 1/2 the price of SDRLF and it is only 8 months old.. Three months ago if asked I would of said that $0.50 to $0.60 per share would be the run rate at the end of full deployment but now I think that cash flow could exceed $2.50 to $3.25 per share in the same time frame...Also in its quest to dominate and consolidate a fragmented industry Sea Drill has stepped up to the table for another $800.mil US buy today.. The numbers are coming so fast that it will take pencil with a good erazor to keep up with this one.. One thing is for sure 2.3 Billion USD have been raised and spent in the last 9 months and another 3.5 has been planned for in new rigs with the yards redily accepting Sea Drills IOU's...This is an ELIPHANT in the Harsh Drilling Rig business...hank


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