To be quite honest I just don't know enough about the oil and gas game to work out the fundamentals properly so I'm better investing in things I know a little bit more about. Got to say with the little knowledge I did have I always thought DLS was the best company, mainly because of their big weighting on conventional oil plays. I convinced myself yesterday that I was a complete novice at this game when I sat down with the AFR yesterday and tried to follow an article dealing with the gas price and supply dynamics on the east coast of Australia, pipeline operators, pipeline capacity surcharges levied on smaller operators, hubs, the want to establish markets for gas trading at hubs. I really didn't understand anything after reading the article. All I got out of reading the article was reinforcement of my already preconceived belief that conventional oil plays are good things to own. At least you can truck your oil to a market and bypass the levy gouging pipeline owners.
I was going to ask speculator101 yesterday if he could come up with some sort of realist value on the Santos/DLS wet gas discoveries that have been made so far (say in a hypothetical arms length sell-back to Santos situation) just to try and put a $ value on these asset, as I have no clue on how to value these discoveries. But if I can't figure this out for my self its hard for me to justify why I should stay invested. I've got a gut feeling these discoveries are what might be sustaining the share price at the moment. The Seven Group investment and the potential for a corporate play another. I think any merger proposals will be very tricky for the board to deal with, as any merger at this time has probably got more potential to damage shareholder value than improve it. A take over would be a lot cleaner, but I doubt this is on the cards in the near future.
Well good luck. I still think there is more pain coming for this industry, at least until the end of 2016. So if I see the price of DLS below 91cents again you might see me pop my head in these threads again.
Eshmun
DLS Price at posting:
$1.16 Sentiment: None Disclosure: Held
