Ann: Drillsearch Energy Reports FY2015 Full-Year Results, page-16

Beach have been there before 9yrs ago when they stumped Santos & picked up Delhi's CB assets for A$530mil @ A$8.41/boe (total was $590mil). That single move took their reserves base from 36 mmboe to 95 mmboe. Noticed the impairments in the FY report on some of the assets.

Going thro' the reports frm BPT, DLS & SXY u'd wonder why a merged entity focussed on onshore operations in Oz shouldn't b the a Outcome. Question is how much to pay in the current environment ? Both STO & ORG have their battles to fight, for now. So it comes down to nxt tier of Operators.

1) BPT: 2P: 74 mmboe, 2C 677 mmboe, Sales: 10.5 mmboe, Rev: $727mil, cash: $170.2m, DbtFac: $150mil

2) DLS: 2P: 25.7, 2C: 86.9, Sales: 3 mmboe, Rev: 250.6mil, cash: 131.5mil, DbtFac: 30.6mil

3) SXY: 2P: 94.6, 2C: 340.7 mmboe, sales: 1.32mmboe, Rev: 115.9mil, cash: 49mil, DbtFac: 80mil


So a merged entity scenario betwn BPT-DLS should give a total 2P: 99.7mmboe, 2C: 764 mmboe and assuming a healthy oil margin for the coming years, perhaps a decent revenue generation & Operating Cash Flow.

With regards to SXY, Beach were there in 2006, selling 1.433 mmboe to generate revenue of $121.4mil.

Gas can stay in-ground for the future. Oil pools in the Cooper can b quicker to monetise. So DLS brings 2P 9.8 mmbbls of oil & SXY would add 11.6 mmbbls to Beach's 19mmbls (oil only, not wetgas).  

The later two companies had share consolidation of 1:10 in Dec'06 (SXY) & Jan'11 (DLS) & took small steps with regards to operations in the CooperBasin to reach where they are today. To expect that to continue for another 10+ years or more on their own just doesn't make sense, unless they find another batch of local 'oil pools' in the Namur, Murta or Hutton sands.

That's my view or logical reasoning behind a merged entity scenario for now. Offer wise who knows, onshore metrics r different to offshore assets.