"Although land-based drillers are very out of favor right now, Bronco Drilling is on solid ground," says Jack Adamo's Insiders Plus of Bronco Drilling Company Inc. (NASDAQ: BRNC). The advisor explains, "There are two reasons for the land drilling sector being out of favor.

"First, the biggest finds are now under the sea. Particularly in the U.S., most of the big, accessible deposits on land are played out. Still, there are plenty of pockets of economically viable deposits to be found, especially in natural gas.

"The second reason these drillers are out of favor now is that natural gas prices are low, and some producers, mostly the smaller ones, are holding off on new drilling until pricing firms. Day rates have fallen 12% year-to-date.

"As winter approaches, I expect utilization rates to rise, and day rates to follow. If we have a bad hurricane or two in the Gulf of Mexico, things could really kick into high gear, as producers look inland while submersible platforms are repaired.

Continue reading Best energy ideas: 'Dirt cheap' bet on Bronco (BRNC)

Best energy ideas: 'Dirt cheap' bet on Bronco (BRNC) originally appeared on BloggingStocks on Sat, 20 Oct 2007 16:10:00 EST. Please see our terms for use of feeds.