Hey Eshmun, great question.
At best, after having a quick look at some old docs that DLS produced back in the day wit BPT in regards to the wet gas discoveries in PEL106A, the numbers could be anywhere from 2mmbo (equivalent) to say 15mmbo??? (That is not net to DLS, but total). The problem for me is, I have very little idea of just how conservative STO as compared to say BPT, who are pretty much DLS main partner.
btw - My guess is as your quote explains, initial numbers, one the discoveries are tested the numbers will hopefully rise quite a bit?
As for whether or not they are priced in. Ha. I have got no idea. I would have thought not, as the market seems to only care about Western Flank oil. But if STO/DLS can start bring some of the discoveries online (like they state they will in the announcement) then surely opinions will change.
Sorry I cannot really offer you more thought on it. I am hopeful that Brad L. will soon have a chance to discuss just the question you have asked in a Q/A session with the FY15 reporting etc. I am sure one of the brokers will hit him with it.
For what its worth, the thing for me is that DLS has 80% of PEL 101 (let alone the Western Flank Wet gas with STO), which may have another 100+ BCF of recoverable gas and liquids just sitting there ready to be developed... time will tell of course.
DLS Price at posting:
$1.07 Sentiment: Buy Disclosure: Held
