Bauer EUR Material increase, page-2

So I have had a bit more time to re-read BPTs roadshow presentation.

Very interesting stuff and most of it very relevant to DLS holders.

BPT have changed the wording of their funding capacity, in the past is was 'Fully funded Capex program'.
Now its Fully funded exploration program. A HUGE difference, considering that Development capex is 75% or more of BPTs total yearly capex for the past couple of years.

Basically, its saying that BPT is no longer fully funded for all the development work required for the SACB & SWQ J/S. So by the new MD saying asset sales or tolling are on the table.. they basically have to be, unless BPT is able to increase its producing base. But of course, the brokers and newies only picked up on the possibility of asset sales, not a clear weakness in BPTs ability to fund the Moomba plant.

Not that I think BPT won't be able to sell their asset, I am fairly sure ORG would be a willing buyer (STO I think is too stretched right now).

I love how point 1 & 2 in BPTs preso focus' on the Western flank and in particular, Bauer....
The new 3D that has been completed in PEL 91 has added 50+ prospects alone (from past presentations).
Add in BPTs new analysis of plays in the western flank, and the fact that DLS has 42% of PEL 182, which encompasses a large section of the Western flank, let alone PEL 91, and DLS is in the drivers seat for conventional oil in the Basin. I like the simple line on slide 23 - Bauer - "Field size continues to increase".

Slide 18 mentions a clear focus on operating efficiencys. Well, with Western flank oil production costs at just $25 per barrel and a clear indication that acquisitions might be on the cards (I cannot believe either DLS or SXY would farm down their Western flank acreage.... its their price assets after all). So acquisitions seems like the only option in that area.

Later slides clearly explain that production from PEL 91 will be sustained for years to come by the other 9 fields that are yet to be produced from. Then of course, there will hopefully be even more exploration success to follow. You only have to look at PEL 92, and the old and almost dried up fields, that continue to produce years after they have drained the 2P equivalents... i.e BPT has been able to continue to drill and increase the total recoverable oil long past the initial field estimates. Bauer and hopefully the other 15 fields in PEL 91 will have similar outcomes. Then you have SXY and their success in finding oil in the Patchawarra formation, below existing fields... it adds a whole new dimension to what some of the fields might hold.

Hmm.. I could go on, but for me, its pretty simple, with the POO, all oilers are looking to maximise cash flow and minimise capex, DLS assets allow this to occur. BPT cannot due to its heavy reliance on the capex heavy gas infrastructure. Either they sell and buy or buy and hold. It bodes well either way IMHO.