Hi all
i have been getting up to speed with DLS again and one of the big positives for the future is the gas revenue and margins . I note in an Aug presentation that had gas total costs at 23 dollars and revenue at 46 . With the expected surge in East coast gas prices over the next few years as well as the expected large increase in gas production DLS is very likely to see margins on gas increase substantially. The wet gas part of the business will ensure a ramp up in gas wells will produce liquids that will more than fund the big drilling expansion
In summary , DLS seems to have a very strong gas future, without the debt of the likes of STO , and if they can grow this business organically as they did with oil , then I have no doubt over the next few years DLS SP will double from today's prices ( at least )
DLS Price at posting:
83.0¢ Sentiment: Buy Disclosure: Held
