SOURCE: Five Star Equities

Five Star Equities

February 29, 2012 08:20 ET

SeaDrill Limited and Linn Energy Benefit From Uptick in Oil Prices

Five Star Equities Provides Stock Research on SeaDrill Limited & Linn Energy

NEW YORK, NY--(Marketwire - Feb 29, 2012) - Oil stocks have been on fire of late. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has outperformed the Dow Jones Industrial Average by roughly 43 percent over the last three months as oil prices continue to surge. Global oil prices hit nine-month highs last week on worries about the impact of heightened Iran tensions on tight global oil supplies. Despite an upswing in oil production, the price of oil shows no signs of slowing. As President Obama explains, "the amount of oil that we drill at home doesn't set the price of gas by itself. The oil market is global. Oil is bought and sold in a world market. And just like last year, the single biggest thing that's causing the price of oil to spike right now is instability in the Middle East." Five Star Equities examines investing opportunities in the Oil & Gas sector and provides equity research on SeaDrill Limited (NASDAQ: SDRL) and Linn Energy LLC (NASDAQ: LINE). Access to the full company reports can be found at:

In the United States, Baker Hughes reported this week that 1,265 rigs were exploring for oil and 710 for natural gas. Six were listed as miscellaneous. A year ago this week Baker Hughes reported 1,699 active rigs. The current nationwide rig count easily exceeds that of the 6-year low of 876 (in the week ended June 12, 2009).

Natural gas rigs continue to decline at a rapid rate, however. Record-high supplies and weak demand during one of the mildest winters on record helped drive gas prices to 10-year lows in January, prompting several producers to cut back on drilling, Reuters reports.

Five Star Equities releases regular market updates on the Oil & Gas sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industries worldwide. It also offers platform drilling, well intervention, and engineering services. The company recently ordered two new ultra-deepwater drillships for delivery in 2014, total project price per drillship estimated to be $600 million. The drillships are of the same design as the three previous dual derrick drillships that Seadrill ordered at Samsung late 2010 and early 2011, with increased water depth, technical capabilities and accommodation capacities.

Linn Energy, LLC, an independent oil and natural gas company, engages in the development and acquisition of oil and gas properties in the United States. Earlier this month the company announced in a press release that it signed a definitive purchase agreement to acquire Hugoton Basin properties located in Kansas from BP America Production Company for a contract price of $1.2 billion.

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