Ann: Quarterly Report December 2014, page-13

Heeman,

That question you pose is very difficult to answer, due to the following two reasons (in my opinion).

The companies which have the greatest possibilities in growing production have this already priced in (to a degree) so there would be limited upside unless they blow expectations away. Which can be a very dangerous game.

Secondly, by buying into companies with the attached premium of increased production, and therefore earnings, if they cancel or postpone projects (which is happening) you get an additional devaluation to the share price.

I believe looking at the price on book ratio may provide some incite to what may be better valued, in addition to debt to equity and the debt servicing ratios. HOWEVER the fundamental component in this situation is seeking out self sufficient oilers, like DLS, as they can reduce exploration to sustain the balance sheet going forward.

I like DLS for the following reasons, exploration company with a nice holding of future works (with most expenditure being shared with JV partners), one of the lowest oil producers, increased earnings going forward, great management team and doesn't pay a dividend. The only issue I have with them is the convertible bonds worth (i think) 150 mil due in 2018 (i think) or unless converted earlier. Besides that stellar company in my opinion.