Ann: Presentation - Recommended Merger of Beach and Drillsearch, page-79

Eshmun
In all seriousness now I think you are a clever guy and after all we like many of the same stocks. I am not here to argue the merits of uranium or PDN and yes you are correct , they have been losing money up until recently
I think selling some DLS at these levels is also wise , so in that regard good move.

Were I think we differ is shale oil is hear to stay , the Saudi won't destroy the industry. The process and technology is there to ramp up as oil price moves up , therefore there is in my view a supply lever that will keep oil prices sub 80 for a Long time . I agree some of the production is non sustainable but even if half goes , the supply dynamics will always respond to higher prices.
The more immediate issue I see for oil companies is how do the replace let along grow reserves. bPT couldn't grow reserves in a 100 price environment , it has Buckley's chance doing it now. As you know wells production profile falls away so if new discoveries aren't made , the prod profile will also fall away and you may have a viscious cycle of lower production , lower revenue , less wells , less discoveries , lower prod etc etc
People were pleased with DLS cash growth , but what was missed is these was hardly any expenditure , it's all happening last three quarters.

The lower for longer low oil price can hurt the value of the merged entity in more ways than one . Usd oil looking weak but AUD oil is the real problem .