Good post Barney. Like you, just finished listening to the...

Good post Barney.
Like you, just finished listening to the conference call. I am very much feeling more confident that DLS is taking the current price of oil and sector sentiment very seriously and making sure DLS is 100% able to ride it out and perhaps, even benefit due to other companies balance sheets being less stable.

Great to hear that the Unconventional well in PEL 570 is underway right now (free well paid for by STO and SEA). The well is possibly the first well to test what is hopefully a sweetspot within the basin for Wet gas, tight gas and unconventional gas. Its also interesting because they are doing this 6-9 months before SXY and ORG will be drilling in the area. A shame they did not provide some more information on the well, but hopefully that will change if they get positive results.

g12m0 - Good questions. Considering that DLS gained a net 4mmbo equivalent from STOs campaign to date, I would say the potential is quite big. Then you have Vanessa which has yet to be brought online also. I think realistically, they should be able to produce close to 1mmbo eq per year once all the fields are connected (very rough guess for now though, perhaps 400-500k in FY16 and 1mmbo in FY17).

Walter Simpson says it best, DLS has some amazing assets that provide it with huge upside if market conditions improve, particularly with Flax. Its a known resource, which is only limited by the oil price. So their 50% increase in production within 5 years is very much a minimum target with plenty to expand upon. His main points are that unlike most, DLS is still able to explore, develop and increase production in a low price environment, everything you want in an oiler.

Wet gas is going to become a bigger and bigger contributor to DLS production from now on, which is a great outcome considering that so much of its reserves have been sitting idle.