Driller

It pays to know the territory, particularly if you’re an oil and gas driller in competition with Kentucky coal miners. NGAS Resources Inc., based in Lexington, KY, made its 20 years of experience in eastern Kentucky pay off in 2004, increasing total production by 77%, revenues by 75% and most importantly, completing an acquisition that helped bump up oil and gas assets by 316% to a value of $68.2 million from $16.4 million in 2003.

It pays to know the territory, particularly if you’re an oil and gas driller in competition with Kentucky coal miners. NGAS Resources Inc., based in Lexington, KY, made its 20 years of experience in eastern Kentucky pay off in 2004, increasing total production by 77%, revenues by 75% and most importantly, completing an acquisition that helped bump up oil and gas assets by 316% to a value of $68.2 million from $16.4 million in 2003.

Houston-based driller Rowan Companies Inc. reported its third quarter offshore rig utilization rate was 94%, compared with 88% in the second quarter and 93% in 3Q02. Day rates increased 25% from the second quarter and were up 17% from the same period a year ago. Land rig utilization was 72% in the quarter, versus 76% in 3Q02. Chairman Bob Palmer said he was pleased that the company had returned to profitability after a net loss last year, but said the company was disappointed with its quarterly performance. “Unanticipated downtime in our Gulf of Mexico fleet hindered our drilling operations and our manufacturing and aviation financial results were less than we anticipated.” Longer term, however, Rowan expects its foreign drilling markets “will continue to attract competitive rigs, further tightening the Gulf of Mexico jack-up market. We are witnessing increasing opportunities abroad for our own harsh environment equipment. We expect that our average Gulf of Mexico jack-up day rates, which increased by 10% in the third quarter, will continue improving during the fourth quarter, and our fleet utilization will again increase. Of course, our optimism is based upon oil and natural gas prices sufficiently high enough to encourage exploration and development drilling by our customers.”

In a strategic deal that would create the world’s third-largest offshore driller, Pride International agreed to buy Marine Drilling Cos. for $1.92 billion in an all-stock deal last Thursday. The new company, to be called Pride International, has already received approval by both boards.

In a strategic deal that would create the world’s third-largest offshore driller, Pride International agreed to buy Marine Drilling Cos. for $1.92 billion in an all-stock deal Thursday. The new company, to be called Pride International, has already received approval by both boards.

President-elect George W. Bush, a former oil driller, signaledlast week that he plans to move energy issues to center stage whenhe arrives in Washington, focusing on oil and natural gasexploration and production and opening up more federal lands tocarry out these activities.

President-elect George W. Bush, a former oil driller, signaledlast week that he plans to move energy issues to center stage whenhe arrives in Washington, focusing on oil and natural gasexploration and production and opening up more federal lands tocarry out these activities.

Chesapeake Energy 1998 year-end results were hammered bynon-cash impairment charges of $881 million. Due mainly to “thesevere decline in oil and natural gas prices during 1998″Chesapeake lost $934 million on revenues of $382 million.