Ann: New Wet Gas Discovery at Varanus South-1, page-27

Auto, good to see you hovering around, that means the company's fundamentals are really starting to show their strength. As g12m0 says, the majority of the gas projects DLS has in regards to gas are yet to be sold, so the current market volatility and pricing is largely irrelevant. A somewhat goldilocks outcome would be for DLS to start ramping up gas production as the 3 Eastern Australian LNG projects ramp up. I will settle for even the current pricing, which is sitting (IMHO) at around $5-6 per mmbtu (I know the price in Queensland is stupidly low, but that will soon change). A hell of a lot better than the legacy prices that are slowly being unravelled across Australia. The other major difference, is all of DLS short to medium term gas projects will be wet gas, so the price of the gas is much less of an issue (I am sure you know this).

One of the gas projects, the Vanessa discovery, should be drilled, or cleaned out and tested this coming week. So I am hopeful we will get some news on it. If nothing else, the Drilling reports from DLS/SXY will provide some color to it.

g12m0, I am fairly sure that BPT is talking about Western flank production costs only, as their Egyptian costs are stupidly high due to all the taxes (but since the majority DLS/BPTs oil production is from the Western flank anyway, I suppose its a moot point to some extent). I agree with your net back per barrel number.

Even if the price of oil in AUD gets down, to say $75, DLS if it produces 3mmbo, will make approx $150 million. Which means they are still able to fully fund their current capex requirements. (DLS will pay no tax until approx 2018).