End game to the oil rout, page-49

Look at it from the good side. Last year's capital spend of $140m was front loaded into first half of FY15 and thus couldn't be pulled when oil price tanked. For FY16, Drillsearch should be wiser and cut capital spend to the bone. Also, itis just common sense to earn the money first before money is spent.

Half of Drillsearh valuation is in gas assets. Probably between $200m to $300m. Advancement in drilling technology and lots of idle drilling equipment will assist in making PEL570 and Flax/Juniper commercial.