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DLS, DRILLSEARCH ENERGY LIMITED
mullokintyre
post Posted: Oct 23 2015, 04:02 PM
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Not a post on DLS.
Obviously everyone missed the boat.
Up 26% today.
So who will get this one??

Mick



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sent from my Olivetti Typewriter.
 
bam_bamm
post Posted: Dec 1 2014, 05:00 PM
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In Reply To: wren's post @ Dec 1 2014, 01:04 PM

Give me a nod when you think the time is right.
carnage everywhere on my O&G watchlist. yikes





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mjwk
post Posted: Dec 1 2014, 01:28 PM
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In Reply To: wren's post @ Dec 1 2014, 01:04 PM

Just sit back , relax and take some time out. If in doubt....... the selling to continue for a while .Im in limbo.





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[font="Arial Black"]Flatout.[/font]

 
wren
post Posted: Dec 1 2014, 01:04 PM
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In Reply To: mjwk's post @ Dec 1 2014, 10:36 AM

" I bet your glad you sold when you did "
And ditto Santos!
Yep,there will be a time to go long these stocks,but no signs yet.

 
mjwk
post Posted: Dec 1 2014, 10:36 AM
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In Reply To: mjwk's post @ Nov 19 2014, 09:58 AM

Will it get to 60c.? I bet your glad you sold when you did Wren. Keep watching!!

R / MJ





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[font="Arial Black"]Flatout.[/font]

 
mjwk
post Posted: Nov 19 2014, 09:58 AM
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In Reply To: wren's post @ Nov 12 2014, 11:02 AM

Good job you bailed out Wren. Nearer to the level now I sugested as worth watching. Must hold or stay out IMO.

R / MJ



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[font="Arial Black"]Flatout.[/font]

 


wren
post Posted: Nov 12 2014, 11:02 AM
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In Reply To: wren's post @ Nov 11 2014, 03:20 PM

Decided to bail out at $1.13….made a few pennies.The overall market is weak and buyers for DLS are a bit thin on the ground.May re-enter if it falls below $1.00,as suggested by mj.

 
nipper
post Posted: Nov 11 2014, 03:53 PM
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In Reply To: wren's post @ Nov 11 2014, 03:20 PM

any views on Central Petroleum CTP?

It may get a 'free kick' from a govt (backed) pipeline from NT to Moomba; also like that it iss conventional gas, not t'other?!

there are gas price and supplies issues looming in E Coast of Aust. - someone is going to win



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
wren
post Posted: Nov 11 2014, 03:20 PM
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Thanks nipper and MJ.
Not over the line yet:if it goes too far the wrong way..$1.04 ..will close the position.
Finding making money quite difficult at present:hope I'm not alone! Sometimes taking a breather isn't a bad idea at times like this.

 
nipper
post Posted: Nov 11 2014, 02:49 PM
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Drillsearch Potential Outshines Cooper Peers FNArena News - November 06 2014

-Best economics in Cooper
-Cash flow even at current prices
-More upside to unconventional

By Eva Brocklehurst


QUOTE
Drillsearch (DLS) has a simple investment case. Cash flow from oil production is being invested to sustain production and grow a gas business to profit from the east coast gas market. Alone, this is sufficient to provide 40% upside to the current share price but also allows Drillsearch to retain the potential for large, tight oil and unconventional gas resources, in Credit Suisse's view.

The broker sums up the Cooper Basin investment case in three themes: current oil production, near-term conventional gas growth and long-term unconventional gas upside. The broker prefers Drillsearch among the Cooper Basin players as it is the cheapest on conventional metrics. It is the only junior still generating cash flow and, as a result, the company has embarked on its largest exploration campaign to date. The broker's preference, as a new analyst takes up the cudgels, is based on the core value of producing assets. Conventional gas adds 32% to the 85% of market cap the broker tots up from the oil assets. Unconventional offers pure upside.

Drillsearch, along with Beach Energy (BPT), brought the first wet gas project into being outside of the SACB JV in 2011 and has plans for 4-5 more. While potential gas volumes are less than its peers, Credit Suisse considers the company has the best economics. Santos (STO) has farmed into three acreages and is carrying $160m in work programs. Drillsearch is targeting over 40 wells and expenditure of $130-170m over the next five years.

What about the oil price? Credit Suisse acknowledges this is getting plenty of airplay now the price is reaching a level where companies may start to struggle to fund capex programs from cash flow. The broker suspects the numbers may get worse over the next quarter so capex programs will have to be curtailed. Drillsearch is most sensitive to the oil price because it has the largest oil production relative to company valuation. Nevertheless, with margins remaining around US$50/bbl, Credit Suisse considers this a strength as, unlike the two other Cooper mid caps, Beach and Senex Energy (SXY), the company does not need to fund any expensive growth projects.

Credit Suisse expects free cash flow to be generated even at current prices and spending. No income tax is modelled until FY17 and no petroleum rent tax until FY19. The broker acknowledges much of Drillsearch's valuation and cash flow hinges on the Bauer field, which showed first signs of starting to decline in the September quarter and has less than a three-year reserve life.

The company reported a production decline in the September quarter, driven by an 8% fall in oil output. Sales revenue was down 13% on the June quarter, affected by the drop in the realised oil price. There was also a delay in connecting two new development wells at Bauer field, while wet gas output was affected by technical hitches.

UBS observes more oil was discovered at Balgowan and Burners but this was offset by disappointing results from appraisal at Stunsail and Pennington. This broker contends that investors are waiting for signs of oil price stability before entering the market but, with plenty of drilling news ahead, remains comfortable with a Buy call. This sums up other views on the stock. JP Morgan was a little disappointed at the lower wet gas production but expects this will increase by mid 2015 when the joint venture will install compression.

The stock offers exposure to the Cooper Basin renaissance and remains JP Morgan's top pick in the area. Cooper wet gas is underestimated by the market in the broker's opinion and is also becoming more valuable thanks to east coast gas market dynamics. Drillsearch is also less leveraged than its peers to Cooper unconventional exploration, which Credit Suisse also highlights as a positive as there is only upside.

Macquarie is a little less sanguine, with a Neutral rating, but expects production improvements as further wells are tied in should help overall declining production. The broker suspects growth is becoming increasingly reliant on wet gas. Operating costs remain high too, as the high cost eastern oil production represents a greater part of the production base.

Morgan Stanley upgraded Drillsearch to Equal-weight from Underweight on the back of the quarterly report, viewing wet gas exploration and appraisal as the key to unlocking further value in the company.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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