natural_gas_20060612c.pdf

ChangeWave Research: Natural Gas & Oil

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Natural Gas & Oil Survey - Appendix C (13) Question Asked: What energy services company would you most want to be invested in over the next 12 months and why? (n=179) Current

Survey May 06

Previous Survey Aug 05

Halliburton 17% 22%Schlumberger 17% 13%Baker Hughes 7% 7%Nabors 4% 2%BJ Services 2% 4%Other 53% 54%

Sample of Alliance Member Responses: (a) Halliburton (17%) SIU02172 writes, "Halliburton - Large Company, many opportunities with increased

drilling." PLA90906 writes, "Halliburton - good news, ongoing momentum " BIG98412 writes, "Halliburton - Large government contracts." TJA44705 writes, "Halliburton - still slightly undervalued and potential to go up after

KBR IPO." FRI48473 writes, "Halliburton - covers all the profitable energy bases." RBR6635 writes, "HAL - Best service, technology, people, and focus." CHA44613 writes, "Halliburton - Covers a lot of range of services and is staying ahead

with technology" MIL42601 writes, "Halliburton - Ability to increase rates for services." DIG41603 writes, "Halliburton - quality tools and personnel and seems from the field to

be taking more market share with good prices" JON13806 writes, "Halliburton - because of its size BOB95974 writes, "Halliburton - Exposure to international oil & N. American gas"

June 12, 2006



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GEG1531 writes, "Haliburton - Diversification across the services spectrum; A technological advantage with a chance of becoming significant. (upside)"

(b) Schlumberger (17%) AHA694"0 writes, "Schlumberger - have become seriously profit oriented and have an

excellent spread of services. MCU04434 writes, "Schlumberger (SLB) - All bases covered especially in technology." DMI05036 writes, "Schlumberger - They are picking up big contracts around the world

that are not being publicized." TRE6660 writes, "Schlumberger - More wells drilled and more logging services

required." DOC44368 writes, "Schlumberger - Global exposure to market; ability to deliver." DR.84979 writes, "Schlumberger - They are the technology leaders." ORE43874 writes, "Slumberger - largest of the group, and headquartered in France

which should avoid some of the international hatred for US companies." FIG45091 writes, "Schlumber - Additional purchases will continue to improve their

service ability." XIE2585 writes, "SLB - solid player with most advanced technicals." REA04950 writes, "Schlumberger - This company has its finger in the pie of almost

every sector of oilfield services." TMO8116 writes, "Schlumberger (SLB) - leader in high-tech end of oilfield services" OCA3417 writes, "Schlumberger - Technology and Service quality" RAG0175 LOU78280 writes, "Schlumberger - They have large market share and good

reputation for high technology and service." TEX43436 writes, "Schlumberger - Ongoing growth likely in the bulk of the company's

business activities." (c) Baker Hughes (7%) DOC85840 writes, "Baker Hughes - because of their slight lead in technology." HER44873 writes, "Baker Hughes (BHI) - More complex tools for deeper wells."



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DYS84990 writes, "Baker Hughes Incorporated - Day rates regularly push into new highs and are beginning to build backlogs into 2010 and beyond."

RBC45973 writes, "BHI - new drilling technology" 1221266 writes, "Baker Hughes Inc - Good reputation and high end technology will

provide high profits." SUB4363 writes, "BHI - technology" (d) Nabors (4%) ENE04465 writes, "Nabors - second tier but sound service company." RON88538 writes, "Nabors - areas they service" MIK82936 writes, "Nabors Industries - Leading NA onshore driller" 2EA85016 writes, "NBR - Big enough to grow, flexible enough to move fast." (e) BJ Services (2%) MUS97962 writes, " BJ Services " SHA05705 writes, "BJ Services Company" (f) Other (53%) PED55042 writes, "Transocean (RIG) - cheap" TER31889 writes, "Transocean" MOH85072 writes, " Transocean" STR3016 writes, "RIG - deepwater giant" SOU85022 writes, "RIG, GSF, NE: High demand for rigs (rig utilization at highest for 20

years)" BUS31939 writes, "Parker Drilling - undervalued, large domestic operation" JOR45949 writes, "PDE - for its upside potential once it sells its land assets" GAS46400 writes, "Carbo Ceramics (CRR) - They're expensive, but they provide a

commodity that's in very short supply - frac proppant." STE7991 writes, "FRD - tremendous growth, efficient operation"



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BAR90929 writes, "Peak Energy Services - does business in busy area (Canada) and pays good dividend due to trust structure"

SMU04923 writes, "UNT - has E&P also 4 largest land driller." KNO05037 writes, "ABB Ltd (ABB) - They are providing power and industry customers

worldwide with power and automation technologies that increase productivity. A requirement necessary for today's rising energy prices. Stock has more than doubled in the last year."

TEE2835 writes, "Valero - Capital spending upturn on replacing infrastructure." SXB11530 writes, "Petrobras - will be devalued because of events in Bolivia. Could be

a good buy following a price dip." GML44585 writes, "Superior Energy - again one of our bigger clients" JSK45526 writes, "BAS (Basic Energy Services) - Expanding demand for their

services." VAC15645 writes, "Precision Drilling Corp (PDS) - Has the 2nd highest return on

invested capital in this industry group, pays a 7.5% div, has the lowest price to cash flow and p/e ratio in this industry group."

GVA49192 writes, "Tesco (a Canadian company) - because of its exposure to

international drilling activities." LEE2564 writes, "Paradigm or Parametrix (I think it's called) based in Canada,

marketing, licensing and selling downhole pumps absolutely necessary to remove the last drops of oil when pumping water in fails (See Matthew Simmons book, TWILIGHT IN THE DESERT, for why this will happen in Saudi Arabia due to their mismanagement of the oldest largest 'giant' oil fields on the planet."

IBO04947 writes, "Allseas Marine Contractors SA is privately held company, one man

show, however good company, almost all budget is spent on inovation." JRT54877 writes, "Worley Parsons - lesser known Australian firm with great prospects

across the energy spectrum" LYN43598 writes, "Wavefront Energy (WEE.V) has a proprietary technology known as

DeepWaveSM Stimulation. DeepWave is a game changing technology with worldwide applications for the improvement of hydrocarbon fluid flow. It can be used to improve oil recovery and expedite the cleanup of groundwater contaminants. Wavefront entered into Technology Licensing and Collaboration Agreements with Halliburton that would allow both parties to jointly research, develop and manufacture DeepWave systems for oil recovery, well stimulation, and disposal. The agreement will help Wavefront expedite the adoption rate of DeepWave by utilizing Halliburtons sales networks, manufacturing and implementation bottlenecks, greater exposure and credibility. Its



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stock price been correcting from its recent run-up and appears to be close to bottoming."

CAL46360 writes, "Savanna Energy Services. Biggest driller (in meterage) in Western

Canada. Coil tubing rigs are perfect for shallow gas and coalbed methane plays that are being exploited."

MNA94794 writes, "Savanah Energy Services has a very new(and growing) fleet of

coiled tubing rigs working for the rapidly expanding coalbed methane industry in Canada."

PKM7870 writes, "McDermott - solid bookimg and performance" NRG86929 writes, "Energy Transfer Partners - good footprint in Texas with

considerable pipeline and storage position" SCO81492 writes, "Helix Petroleum - due to CAL DIVE's expertise and full utilization of

undersea work line of business and Remington Oil GOM resources that will stabilize this merged company earnings when service contracts are slow"

HAL86873 writes, "Enterprise Oil - do pipeline tie in to wells Wavefront Energy and

Environmental - Pulsing technology to recover more oil from old fields" SMA05675 writes, "Pengrowth Entergy Trust - Lower risk, excellent dividents as well as

price appreciation. Moreoever it is in Canada so I am hedged in case dollar weakens." MYD56138 writes, "Seitel, WesternGeco -3D seismic is going crazy. Drilling inflation is

extremely high. Most rigs are manned by ex-cons today. Drilling companyies are making 100%-150% profit on their dayrates. Any large drilling company like Nabors and HP are doing well. This inflation is going to be the largest factor stunting growth in the exploration and development side of the business. Onshore Texas drilling costs have soared. Where it cost 850K DHC a year ago, it is costing 1.4 MM, nearly doubling. I overheard a drilling contractor boast about his profits on these activities of nearly 110%! Something is going to crater."

CW263216 writes, "W-H Energy Services, Inc - Good growth prospects through

continuing addition of high growth potential companies." JOR53273 writes, "Grant-Prideco. Excellent products and potential" HAK3609 writes, "Drilling, detailed imaging of reservoirs for bypassed oil determination

and better targeting" WER7325 writes, "Currently these Co's very over-valued and prices are at an all time

high. I would look at the waste business, as the prospects for oilfield waste are huge."

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natural_gas_20060612c.pdf