Ann: Company Update, page-2

Interesting update by the company. In the footnotes production costs are stated as US$25 per barrel so there is still plenty of margin at current but decreasing prices. It would have been better if they could have disclosed an all in cash cost including overhead, sustaining capital etc. I would imagine this is closer to US$40 per barrel.

A major plus for DLS is the covered capital spend by BPT and Santos over the next 12-28months. And 60% of one of the best addresses in the cb, pel91.

The question lingering in my mind is how does the wet gas business case stack up at current or prices and say 20% lower again?