Gas revenue, page-2

Hi folks
just got my hands on a Credit Suisse report that compares BPT/DLS/SXY and STO.
the conclusion is that DLS is the best place to deal with current oil price as it has the highest prod relative to capex and is the only company where income (even with current assumptions) will exceed spend. It also has the highest leverage to an oil price recovery. Importantly it highlights how a large part of DLS wet gas growth will be funded by STO.

Importantly its crucial to remember the following
DLS sells oil at a premium to brent of $2-8
DLS Bauer filed is likely to have a decent reserve increase - BPT have already said this to the market, DLS will capture it in 6 monthky reserve review ( Dls owns 60% so even a 2m increase for the field will see 1.2m additional reserves for DLS
DLS is carried in large way in a key area of its growth ( the wet gas ) by STO
DLS has hedging in place

CS target price with lower assumed oil price is 1.50