Yes,...PDS missed expectations of (Zero) vs (-a
nickel), it really does not amount to very much, because
it was weather related.
On the positive side the
company has changed its ending date for the fiscal year
to December 31st., and this would help correlate
earnings comparisons with other stocks in the sector.
A buy signal was generated on the point and
figure charts on 3/7/00. Since then we broke a double
top point and figure pattern on 5/5/00 at 35.00, we
have since corrected the move back to the double top
support, momentum is positive and the next target lies at
On May 8, 2000, Precision Drilling Corporation
announced its intention to commence an unsolicited
take-over bid to acquire all of the issued and outstanding
shares of Plains Energy Services Ltd.
As a result of
the public announcement by Precision Drilling. In
order to provide Plains Energy's Board of Directors and
the Independent Committee the opportunity of
reviewing the formal offer, if any, to be mailed by
Precision Drilling pursuant to their announcement, the
Board of Directors has determined to defer the
Separation Time of the rights arising under the Shareholder
Rights Plan until May 29, 2000.
Peters & Co. Limited have now opened a data room and
have been contacted by several qualified U.S. and
Canadian attendees to review the information contained
therein, as well as to attend field and facilities tours
and meet with key management personnel.
Plains is a leading integrated oil and gas service
provider, focused on the practical application of
technology throughout its operations in drilling, wireline
services, downhole tools, well servicing, production
testing and underbalanced drilling.
Phuber,...my humble response includes the
following: (1) PDS larger financial base will make it
possible to expand the wireline services of Plains: (A)
faster than Plains could have done by itself. (B) The
casing inspection tool of PDS will expand the Plains
wireline cased hole services offerings to customers. (C)
Also PDS technology in open hole services will provide
a more complete array of services to customers at
selected locations. (D) And will Expand the geographical
distribution of services by Plains through PDS (Computalog)
Canadian, U.S. and international presence. (E) Also
synergies would be derived in R.& D. manufacturing,
fabrication, supplies, etc.
I agree with your initial
concern that being that PDS may choose to pay down debt,
rather than to expand the wireline scope of services,
personally I do not think that one precludes the other, and
as you know you got to spend money to make
money..(smiles). Hope this helps, I'm currently waiting for
Computalog to hire me in either operations and/or sales, and
would welcome that cup of coffee you so kindly invited
for an intellegent argument from you to support
your claim that "...the financial muscle of PDS will
expand and create new opportunities.....". In a previous
posting, you asked me for my opinion regarding the PDS /
PLA fit, and I gave my opinions with supporting
arguments. If you do not agree with my position, please
respond with solid arguments on your position. Simply
stating SLB redeploys, upgrades,etc is no arguement. PLA
has been doing this internally for years, and like
SLB, C-LOG, HAL, etc, has been successfull at it.
After all, wireline trucks have wheels under them, and
are meant to travel...anyone will put them where the
Schlumberger is living proof that there is safety
in numbers and that units are movilized periodically
to be outfited with newer equipment, to be
maintained and at times redeployed to meet demand thereby
returning a fair profit for the company, is there something
new about this concept in your opinion.?. All
wireline major companies do this on a periodic basis. i.e.
SLB, HAL and Western.
On your next message, If you know me, call me by
my real name, and sign your reply by something that
does not spell out like Man Bonkning, and then let's
get together for coffee. You state the "units can be
redployed...." I assume you know what you are talking
What are your argruements regarding
PD(S) gaining market share throughout this attempeted
takeover? You've listened to mine, now I want to hear
something concrete from your point of view.
don't have anything worthwhile, maybe somebody else can
carry on this little conversation.
Phuber,...with out a doubt there is safety in
numbers and Shlumberger is living proof, also the units
can be redeployed to where demand offers greater
Agree the patents of the coiled tubing
technology are a very important, but let us not minimize the
contributions that the other segments such as cementing,
stimulation, wireline, slick line, fabrication facilities and
the personnel of Plains can make.
Yes with out a
doubt the financial muscle of PDS will help expand and
create new opportunities globally as well as domestic in
years to come.
I agree that PLA would be a good fit for PD in
amany areas, however, the fit will not be as good as
most think. First, regarding your comment on packaging
of services....many companies have tried this, or at
the least offer this to the oil operators. Some of
these companies include Halliburton and Schlumberger.
However, having worked on the operator side, I can tell
you that packaging of services is not all that well
recieved, especially from the mid sized to major operators.
The juniors typically use the cheapest service they
can get, and this does not come from the bigger
servcie companies. Secondly, PD will still not able to
"package" many services. Athough PLA has a cementing and
fracturing/acidizing division, this is only operating in the States.
PD will have no such division in Canada, which is
where the majority of the PD and PLA business is.
Third, (48 PLA units is a little high ...they have 45
electric line and slick line units on the road),
Computalog will most likely lose on the combined market
share. A combined total in excess of 90 cased hole units
for one company is too much for the market, and the
operators will make sure that the smaller independants keep
Computalog honest regarding procing and service supply. This
alone will remove market share from C-Log. Combine this
with the the fact that many smaler operators prefer to
use smaller, local independants for a good portion of
their business, and the market share shrinks even more
as PLA's customers turn elsewhere.
Underbalanced drilling will be aided by Entest, however, since
I do not know this side of the business, I will
The only true positive here for
PD is the acquisition of the Coiled tubing drilling
business. (PLA just announced successfull testing of their
next generation CTU--the Cisco 2000). While PD has
stated they have plans to roll out some of their CTU
units this year (2 or 5 ??), they have not yet been
able to get them on the road and working. Therfore, by
purchasing PLA, they have ready access to a proven
technology that is gaining market share.
helping PLA on the domestic and international markets,
no, I do not believe the "financial muscle" of PD
will help. PD's international market is not all that
large, and domestically, I have already stated that
because of the new combined size for Computalog, domestic
market share will decline.
Phuber,...Thank you for your information in your
recent posting, PDS does leads the field in several
areas including: (1)under-balanced drilling and (2)
cased hole wireline business, the 48 wireline units
from Plains would enhance its position, along with
Plains Coiled tubing drilling technology, and the
broadening of services including Plains cementing and
fracturing services would also allow them to package the
options to clients in to one contractor, would you not
agree that the financial muscle of PDS would help
Plains efforts domestically as well as