Ann: Investor Presentation , page-20

We have talked about this before. Drillsearch have been sloppy in putting together their presentation in the past and interchanged net debt with total debt. Debt hasn't changed, it is $140m in total made up of US convertible notes and a bank facility.


Total cash has gone down. This isn't a surprise. As spec notes we had to settle the STO transaction and we are in a very capital intensive stage... Look at the presentation capex is forecast to be $90-$110m for the year or $25m per quarter simplistically.

Then look at the annual report. There was $38m payable for drilling activities that was settle in the September quarter.

So the numbers at a very high level:

Opening cash $33m
Less fy13 payables settled -$38m
Less STO settlement -$23m
Plus Revenue +$86m
Less Cost of sale and admin etc -$25m (absolutely rough estimate made by eyeballing the annual report)
Less capex -$25m
Add back Closing payables say $20m ( again rough)

= $28m closing cash

This is just an illustration to show the large movements impacting the cash balance. It is fairly close to actual cash of $25m reported.

You can see how it all adds up when you are a growth company!!

Focus on what really matters

- Before the release of this announcement I saw posting about revenue predictions, with $66m bantered around as a upper limited. This has been absolutely blown out of the water...$86m what a wonderful result.

- Production run rate of 3.2mmboe Per Annie and expected to increase. We are going to massively exceed the production forecast.

- can't believes we will have unconventional reserves of 1.5-2tcf by the end of the year

- revenue for the quarter was over 80% of the revenue for the entire 2013 financial year!

- liquids production restate at flax....we even have facilities there already.

Admin costs. I see mention that these are high. Has anyone got any analysis supporting this? Perhaps a comparison with SXY?