Hyduke Energy Services Inc. HYKCF

RE: Baker Hughes June 2007 Rig Counts

[pete7u9]

Why is Canada's rig count down? 1. New tax on Canadian trusts. 2. Capital expenditures are going to oilsands and "hot" minerals projects - Canadian petroleum stocks no longer "hot". So extra capital is not flowing into conventional petroleum drilling like it did a few years ago - IPO and private placement money is down. ROI from conventional petroleum drilling is good; and its more predictable than a new oilsands or minerals projects - so why not invest more in conventional petroleum drilling. There is really no good explanation why capital spending in conventional petroleum sector is down. Conventional petroleum sector can continue to outperform other sectors, on a return on capital basis, as it has in the past. COS.un has been great (do they pay their share of capital expenses?), but ... How many minerals exploration companies have been profitable enough to be turned into trusts? Only highly profitable companies can afford the big dividend payouts and those companies are conventional petroleum companies. The whole trust structure concept was designed for conventional petroleum companies.