Ann: Quarterly Report June 2015, page-2

A very credible quarterly, production back up above 800k boe. Which should mean they will easily hit 3mmbo by the end of FY16. Just over 50% of their oil production is hedged (call options) at a minimum of US $60 (approx AUD $80 per barrel), so their revenue base is very strong, plus 3 new fields in the Western flank to be brought online this half.

Western Flank production will ensure that DLS can still drill 22 wells this FY with a much reduced capex (also benefit from the free carry's they have with STO&BPT), I am fairly sure they will be able to sit at the same level of cash all year round (assuming the price of all does not fall to $20 a barrel, then worst case, DLS can just just stop internal drilling and allow STO and BPT to drill some wells this year).

Not many oilers can boast what DLS has. Plus we will get a reserves upgrade and hopefully have some more discoveries along the way, plus finally see some of the many wet gas discoveries start to come online this half.