Rowan Companies plc Message Board

Consolidated Natural Gas and now Coastal Group
increase their Capital Expenditure Budgets for the year. I
find it very curious that two of the pipeline
companies that have the clearest vision for future demand
for natural gas delivery are the first to increase
their level of activity in 1999. IMHO, we underdrilled
for new natural gas wells in North America. Geo

<EOM>

Coastal Group announced today that they were increasing their E and P budget for this year to $880 million from $590 million, things are turning around faster than everyone thinks.

I went back and checked on offshore Brazil. 9 of
the 27 blocks are in water rated 0 - 200 meters. What
they mean by "0" for water depth, i'm not sure, but at
face value, 1/3 of the prospects are within Rowan's
range, with the gas prospects all in shallow water and
most oil plays in deeper offshore. These blocks are a
little bigger than normal, averaging around 7,000 sq km
each.

interesting.

You don't have to lengthen the legs that much to land a helo on it do you? And the Amazon license areas include onshore, shelf and deep water where a significant natural gas play is suspected.

Rowan might have to lengthen the legs a few thousand feet to be able to drill off Brazil. Brazil is not really considered a jackup market.

There is supposed to be enough reserves in the
Lost Hills fields of Alberta to support the initial
flow rates of the Alliance pipeline. The huge
potential lies in the untapped fields of the North West
Territories, which, up until now, have not had a commercial
outlet, and could support a expansion of the pipeline
capacity. At the initial rate of 1.325 bcf per day, this
will add about 2.2% to the supply based on 1997
consumption rates, and will only satisfy the increase in
demand for about a year.

The Alliiance Pipeline is a wildcard for natural
gas delierability. Many in the natural gas business
wonder if there is sufficent gas reserves per well (at a
reasonable cost) for this project. If I recall correctly,
one of the other proposed Canada-US pipelines was
cancelled for this reason. Good comment though.
Weatherunderground, please keep our board informed of its progress
and impact on natural gas delierability. (This
pipeline project makes some of the land drillers in Canda
look like they could be a good investment, IMHO) Good
luck to you. Geospar

If shorting your game, go for it. Who knows, if
you're a short-term investor, maybe Q2/99 earnings will
drive the price down from here and make it a decent
play. If so, you missed the easy money a week ago.


I looked at the insider sales and a lot of it could
be matched to exercised options. Many insiders get
stock options as part of their compensation package and
treat it as such. I was more impressed with Harry
Boswell's (a Board Director) purchase of 6000 shares on the
open market for 15 7/8 (April 28, 1999). There are
many reasons for an insider sale, but only one for an
insider buy.

I like the future earnings potential
of RDC looking ahead to 2000 and 2001. I'm giving
more weight to that potential than the book value of
the stock, Good luck to you. Geospar