Jeffrey Lin_

Land-Based Drillers Extremely Mispriced

Great analysis Alan. I'd like to point out, however, that just as the trend is for deep water drilling in the ocean, land drilling must go much deeper as well. This might separate the haves and the have-nots where the ones with the best equipment & crew can drill deepest and those who have out-dated equipment are out of luck. Also, the turnaround in land drilling might not be as strong as your historical data shows. There might be less rigs put up because less places to drill. Unlike in the past, geological imaging has greatly improved such that drilling companies can identify wells instead of having to put up rigs to drill holes and check for oil.

Still, I'm not familiar with some of the names you suggested, so I'll definitely check them out. Thanks for this article.