BG, not really anyting to fill you in about, except just over a month ago DLS announced that they were in negotiations for a change of control in the company .
Since then they have not commented on it . But a major shareholder in DLS who occasionally contributes to this thread, and backed Dixons board shakeup many months ago, has written that he would want 30 cents for his shares .
The pleasant prospect now is that we have a major "company making" drill for 200-250 barrels estimated OIP in August . We have a farmout with one of/if not the biggest Oilers in the world. Prespud for this drill should cause some anticipation and appreciation in shareprice closer to 30 cents .If oil is found then 30 cents will be cheap .
We don't know who DLS is negotiating with but imo, Exxon and Santos are both probably interested .
DLS are producing now, and increasing oil reserves now . They control a listed Canadian gas producer and hold numerous other prospects . They hold a substantial stake in BUY which, although disappointing to date, has a major gas prospect offshore NSW .
Robert Gottliebsen, in The Australian (12-13/5/2007) ,
http://www.theaustralian.news.com.au/story...0-16362,00.html
".......One area of potential gain that was buried in the budget was gas.
If we move to carbon containment measures, gas is likely to be much more important to our energy generation. But Australia does not have sufficient quantities of gas in the eastern states............
the value of gas deposits in the eastern states is likely to rise strongly ......."
DLS are on a current PE lower than the sector PE .
IMO, there is very little near term downside here but a high chance of upside . Do your research please and tell us what you think .
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