SPEARS SEES GAIN IN U.S. ACTIVE RIGS

The 1990 U.S. count of active rigs will average 1,000, a 15% gain from last year's average, predicts Spears & Associates Inc., Tulsa. Well completions will total about 36,900. Current drilling activity is running more than 20% ahead of last year's level, but Spears believes operators are rethinking second half drilling programs in light of lower than expected U.S. oil and gas prices. Latest U.S. tally by Baker Hughes Inc. is 999 active rigs for the week beginning June 18, up 25.7% from

June 25, 1990

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The 1990 U.S. count of active rigs will average 1,000, a 15% gain from last year's average, predicts Spears & Associates Inc., Tulsa.

Well completions will total about 36,900.

Current drilling activity is running more than 20% ahead of last year's level, but Spears believes operators are rethinking second half drilling programs in light of lower than expected U.S. oil and gas prices.

Latest U.S. tally by Baker Hughes Inc. is 999 active rigs for the week beginning June 18, up 25.7% from the same week last year.

Spears expects West Texas intermediate spot prices to average $19.22/bbl this year, a 2% drop from last year. Natural gas prices will be only marginally higher.

Spears raised its projected average rig count for the year by 25 units from earlier estimates but thinks first half gains will flatten the rest of the year.

It noted horizontal drilling accounts for 115 active rigs and coalbed methane drilling 20, up from 15 and 10 rigs respectively last year.

Spears expects 1,000 horizontal wells to be drilled this year at a total cost of $1 billion.

Outside investors may account for $300-500 million of that total alone.