Spec, as always, excellent posts and great insight. I think you...

Spec, as always, excellent posts and great insight.

I think you are right-on in respect of the reserves increase SH can expect for the FY15. I look across the DLS portfolio and see the drilling success in PEL91 for oil and the 100%successful development program in bauer and across the other material discoveries there; I also consider the discoveries in 106 and 513, which may just be larger in terms of boe reserves than 91. So far STO has been going like the clappers drilling these deep wells to assess both conventional and unconventional resources. The gas will go strait into GLNG and may just be cheaper than CSG at Fairview (tbc) so it could have a priority. How much is there, we haven't been told yet, but that will change in August, as we have a sales agreement in place (which runs through 2025 mind you). I hesitate to take a stab at the reserves in place but I think it could be easily upward of 100bcf (DLS had about this before contract and arrival of STO) but could eventually see something close to 500bcf and maybe even 1tcf when all is said and done. Perhaps STO are not so short of gas for GLNG and the ace up the sleeve has already been secured via 106/513 and their other permits in the Cooper...

No wonder there's been lots going on with DLS in recent months. If DLS will be taken out, it will be in the next 3/4 months or nothing. I see SGH having a go but they will be trumped by STO who will offer equity for a small dilution. DYOR...