Delta Petroleum meldet Gasexplorationsprogramm

             describing his assessment of the prospects for the oil services
             sector. His perspective is long term, having joined Exxon
             (XOM:NYSE - news) in 1955, after completing his schooling at
             UMass and Princeton and a stint in the Navy.

                            His tenure in the industry, combined
                            with his position as head of the
                            dominant land-rig operator in the
                            world, lends his opinion of the
                            industry's future a lot of weight. "We're
                            in a tight market and I think we will be
                            for some time," he said. "The major
                            exploitable is the North American gas
                            market."

             And, it's a market Nabors is positioned to take advantage of.
             "The company has the largest fleet of deep drilling rigs, which is
             likely to benefit the most from an expansion in North America gas
             drilling," said UBS Warburg energy services analyst Jamie Stone
             in a report prepared for conference attendees. "Nabor's earnings
             are accelerating as drilling activity picks up and rig day rates and
             margins begin to rise." He rates Nabors strong buy with a $71
             12-month price target. His firm has not provided banking services
             for the company.

             As exploration and production companies push for additional
             drilling rigs, Nabors will benefit. According to Isenberg, Nabors
             has 60% of the remaining industry capacity. "We will put 150-180
             new rigs to work in the coming year," he said. With demand
             pushing rig rates to new highs, margins expand with additional
             cash flowing to the bottom line. Estimates call for Nabors to earn
             $2.10 in 2001, up from 89 cents last year, with cash flow
             increasing to $4.09 this year from $2.36 in 2000.

             The ramp-up in rig development has surprised even Isenberg.
             "We're bringing out more rigs than anyone would have guessed
             two years ago," he said. "People are surprised at the number of
             rigs we could bring out and the rates we can get for even a
             mechanical rig."

             While the longtime oilman is happy with operations at home, he
             thinks Nabors' international business still has room to improve.
             "Offshore, things are going a little slower," he said. "International
             business is slower than we expected, although it is picking up."

             As for the future of Nabors, a company that has grown
             significantly through acquisitions, Isenberg believes additional
             merger opportunities are limited. "I don't think there are many
             things in the Lower 48," he said. "There are international assets
             we could buy and bring them back here."

             However, Nabors has more than $1.2 billion in cash, which
             Warburg's Stone thinks points to additional acquisitive growth.
             "The company has successfully integrated its latest acquisition --
             Poole Energy Services -- and is likely to continue to augment
             its growth through acquisitions."

             While some analysts say the stock is expensive -- currently
             trading at nearly 30 times next year's earnings and 15 times its
             cash flows -- the company remains the clear leader among
             land-based drillers. "There will be 1,300 total U.S. rigs by the end
             of 2001," says Isenberg. "Eighty to 90% will be land rigs, and we'll
             have over half of those."