Back to DLS....what next

Hi All

DLS seems to be holding up quite well. I expect eshmun that you should be quite happy now and out given the share price today.

I believe the BG  and RDS deal signals something much larger going on in the oil industry. I find it a little strange and arrogant for someone to post calls that RDS paid too much which makes me laugh a little as it makes me wonder what info do these people have or know that companies like RDS can't possibly know or have an understanding of. I guess that's why we are all in the privileged position here posting stuff on HC and can only dream of ever being in the position to make such a dumb mistake.

I don't believe that companies reveal all that is to know about their commercial in confidence positions with respect, in this case, to their reserves and the true nature of the ground they are drilling. This of course cuts both ways ie upside and downside surprise. What do I mean in saying this - quite simply playing your cards close to your chest and only revealing what you are obliged to.

What I have gained, over the past few weeks, is that the tide has gone out and we are now seeing who is naked - to use a Warren Buffet term. There are companies out there who have good balance sheets with not so good fields or reserves and those who are in the opposite position, good reserves but not so good on the balance sheets. Let the dating game begin.

That makes me ask the obvious question where does DLS sit in all of this?

Well I believe that DLS sits quite handsomely in the middle - good reserves, good acreage and a good balance sheet. I think that is now being reflected in the DLS SP performance of late.

So where to next? My personal preference is for DLS to go it alone and succeed for its shareholders. But I'm a realist and know, while capable, how difficult this could be and would be happy for a takeover provided it is fair. One thing I can almost be sure of is that it won't be the likes of BPT. My reasons, well if after all they (BPT) know about the area and about DLS aaannnndd the recent drop in the DLS SP and they still haven't moved they never will. Yet again an opportunity wasted by BPT I feel. I know what we all know about DLS but it is what we don't know, the discovery part of DLS if you will, that I am interested in -  ie the real DLS.

Interesting to note in another post that RDS will now own the BG stake in DLS. How is that going to play out? Will RDS continue the support of DLS?

We are still in a commodities super cycle but are now in a period of adjustment. Once this plays out, which should be by the end of the year, we will see a very different oil industry.

There is more to be discovered about DLS and I believe this all bodes well for shareholders.

Cheers
BW
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