Good oil conference, page-8

Firstly, Brad delivered an excellent presentation. My views, as always are my own, just summarizing what I heard etc.

Whitenoise, while the convertible notes do make the debt situation look unexciting, the reality is that they were until recently in the money, and IMHO, will most likely be converted in the future, meaning DLS is sitting on over $150 million in cash, plus its Western and Eastern assets continuing to spew cash into the coffers for years to come. Would be interested to hear your views on what DLS should do to further increase shareholder value in the short, medium and longer term?

DLS added over $120 million in cash in FY14. That's after a busy year. While DLS will not be able to do the same this year, largely due to a lower oil price and a much bigger work program there is still much to like in an Oiler building a cash balance while upping its exploration work load.

Regarding a dividend, agree it was  a shame they could not justify one, but I am confident that in time, they will reward shareholders through both share price appreciate and a return on capital.

Right now, DLS has 4 rigs operating on its acreage, with another starting up next month. Lots of drilling activity for the next 12 months.

Very happy to hear Brad talk about PEL 91 being covered by the S.A agree with basically means they have a much more secure tenure over the acreage, with the ability to relinquish acreage in other area's of their holdings (obviously the less prospective parts, for example, part of PEL 182, PEL 107, or in PEL 570 etc). I believe they also have longer tenure in general, meaning DLS/BPT can be less rushed in trying to drill targets everywhere at once. Also very interesting to hear that they are finding more formations containing oil in PEL 91 (within the discoveries to date), meaning that as the add the data to their databases, they will most likely come up with further targets that were until now ignored. Back in 2009, PEL 91 was viewed as holding a P90 of 20mmbo in place. That has been well and truly blown out of the water. Bauer alone has more than 20mmbo OOIP.

Then you have the Hurron prospect to be drilled at the end of this year. OOIP of 70mmbo. With a mean recoverable of 28mmbo. That is the kind of prospect worth drilling...

I very much like that DLS is tackling the unconventional gas project at a moderate pace, i.e. They don't want to throw money at it willy nilly just to be near the head of the pack. Better to let Santos and Chevron/BPT throw hundreds of millions at it. Just keep a step behind them in the slip stream. Much less effort, but still positioned strategically in the race.

Tintaburra just ticking alone. Hopefully contingent resources will start to move into 2P as continued work on the fields achieve greater recovery rates.

Flax/Juniper - simply put, "the oil is def there". The question is can the wells be drilled and fracced successfully. I bloody hope so. They are drilling 10's of thousands of wells a year in the U.S... surely they can drill 9 in Australia (albeit I realise it will be a first for Australia, 2km horizontal wells with 8 stages fracced).

The rest I have pretty much already talked about in the August full year results presentation.

One thing that is new in today's presentation, is the visual size of the two new fields recently discovered. While the field images are not going to be totally accurate, they do look to be similar to Pennington (which is a good sized field). (Burners-1 is clearly still be assessed as to its commercial viability. Still a good result, but time will tell if its worth an appraisal well.