All good Toll, I commend you on doing your due diligence before...

All good Toll, I commend you on doing your due diligence before buying in.

As you mentioned, the convertible notes are extremely serviceable, my calcs show that it takes DLS about 13 days of production after costs to have enough cash to service the $7.2 million you mention. So, it could be argued they have a debt to repayment val of 30/1. I think that's pretty safe.

In regards to your worry about drilling. IMO, unlike SXY and BPT, DLS has the most known and already proven conventional targets in the Cooper Basin.

Whether it be the Tintaburra field, or the new fields which the gained through the ACER acquisition, they should have a fairly successful drilling program assuming that all the current data is mostly accurate. If you find the time, perhaps have a brief look at some of my past posts on DLS. I think DLS have a lot of potential to have a MC of at least what SXY has currently within the next 6-9 months.

Good luck to all holders.