Ann: Presentation - Recommended Merger of Beach and Drillsearch, page-39

One thing I have learned through this investment, is when the MD leaves on short notice, you leave with them (unless they are known as the reason for the company underperforming). I have a feeling Brad Lingo understood that Stokes was going to be able to 'squeeze' DLS and hence, he would (1) lose his job and (2) there would be little premium for DLS because of Stokes ability basically control the register.

Autosime has explained (and I have posted over the years), that BPT had not growth abilities. DLS has them all. Yet the 'premium' being offered for DLS is hardly a premium at all. I am a little curios how the DLS board can honestly recommend this deal when they have not fought tooth and nail to get the best offer for shareholders. DLS could reduce capex to $20 million a year and earn its entire market cap (pre- Takeover offer in just 2 1/2 years). It has reserves at 3mboe for 8-9 years with no further conversion from its 3P to 2P.
BPT has nothing like that. Much of their 'large' 2P is in gas, and its not cheap gas. BPT has barely double DLS oil... and yet Oil is still the most profitable part of both companies.


There are heaps of articles about the merger. All very lovey dovey and all say its a good deal.... for BPT....
I will say that I think if Brad was still MD, DLS shareholders would be getting a better premium. Humph.