DLS - Drillsearch Energy

[gagaga]

any thoughts on this stock? this stock is certainly undervalued, and some good news are coming out on their projects......a company with 0 debt, good cash flow and newly appointed directors that boost exploration activities and financing mean...certainly has more potentials...5c looks very yummy right now:::

 

[prozac]

They may have no debt gagaga, but they have no money either. The recent share issue looks like it will be a flop, their biggest single shareholder Beach is selling down like there is no tomorrow, 2 of the directors.....well Beach are selling down.

The company has become so litigious since the new board structure occurred in June, they will have some legal fees coming up that will need to be paid. There goes any money raised from the share issue. The cash flow you mention does not match the monthly burn.

I do not see Drillsearch as good bet at present.

I no longer own any Drillsearch shares.

 

[oldblue]

Beach have a tendency to "trade" their assets - eg two 10% chunks of the BMG field; their Tipton West CSG interest. They recently mentioned the profits made on the failed takeover bid for DLS - quite how they work this out is a bit obscure seeing as they issued BPT shares, not cash - but never mind.

It wouldn't surprise me to see them continue to sell down their remaining DLS interest - about 10% - with a view to having another go at them sometime down the track.

Disc: Hold a few BPT but no DLS.

 

[prozac]

I notice on another forum posters saying DLS says it has a good relationship with BPT. This would be why Beach have now knocked back 3 times approaches by DLS for a JV partner. They want DLS at arms-length.

 

[riverred]

Beach have a tendency to "trade" their assets - eg two 10% chunks of the BMG field; their Tipton West CSG interest... It wouldn't surprise me to see them continue to sell down their remaining DLS interest - about 10% - with a view to having another go at them sometime down the track.

Yes, BPT has an interesting tendency, hasn't it? But we should acknowledge that it did very well from the BMG and TW disposals.

If BPT does attempt another takeover on DLS, then I wonder if the additional DLS shares in circulation would influence the offer price. One would think BPT is interested only in their Cooper basin resource/reserves and possibly the relevant tangible assets. All else is superfluous.

 

[Putty7]

Not holding any of these but noticed they are having a bit of a run again on the back of 2 good announcements....

12 November 2009

Tintaburra Block Drilling Success / Ipundu North-13 next development
well in program

Drillsearch Energy Ltd (ASX: DLS) is pleased to announce that the Ipundu-16 development well has been successfully drilled and will be cased and suspended as a future oil producer.

The company is also pleased to announce that following completion of the Ipundu-16 well it will also participate in the Ipundu North-13 development well as the second well in the Tintaburra Block oil development drilling campaign.

The Tintaburra Block is a joint venture of Santos Ltd (89%) and DLS (11%) and is the company's largest production joint venture.

18 November 2009

Chiton Oil Field Development Update – Chiton-1 tests at over 2400 BOPD
production rate

Drillsearch Energy Ltd (ASX: DLS) is pleased to provide this update on the development of the Chiton Oil Field. The company was advised by Beach Petroleum as operator early yesterday evening that it completed a flow test on the Chiton-1 oil discovery well.

The test was conducted following perforation across a 5.5 metre interval from 1409.6 to 1415.1 metres measured depth. The test was conducted for 1.3 hours and averaged an estimated flow rate over that period of 2,434 barrels of oil per day and day & 226 barrels of water per day.

Chiton-1 is the first Namur Sandstone oil discovery within PEL-91. The Namur Sandstone has proved to be a prolific oil producer along the same trend immediately to the south in PEL 92.

An initial estimate of the potential resource based on this data, indicates recoverable oil reserves in the field in the range 0.04 to 0.39 million barrels (P90 to P10) with a P50 reserve of 0.12 million barrels.

After completion of the initial drilling operations, Chiton-1 was completed as a future production well and the further information acquired from the production test will enable Beach to refine the resource estimate for the Chiton Oil Field.

Working Interests in the Chiton-1 well and the Marino-1 well are: Drillsearch Energy Limited 60% and Beach Petroleum Limited 40%

Traded today between .063c and .083c on a volume of roughly 106 million and finished 27% up on .083c (+.018c). Not a bad day, just thought it was interesting no one has commented on these.

 

[Boognish]

Annouced today:

3 March 2010
SUBSTANTIAL UPGRADE TO WESTERN COOPER UNCONVENTIONAL
GAS PROJECT PROSPECTIVE RESOURCE POTENTIAL
• Drillsearch recently engaged independent technical experts to assess the
Prospective Resource* Potential of the Western Cooper Unconventional Gas
Project
• The finding of this independent review materially increases the Gross Deep
Coal Seam Prospective Resource potential to 9.9 to 19.9 TCF – an increase of
over 360% from previous estimates
• The review is based on extensive data from over 450 conventional oil & gas
well logs
• The Western Cooper Unconventional Gas Project is located close to extensive,
existing gas pipeline infrastructure capable of accessing most of Eastern
Australia’s major gas markets
• These Unconventional Gas Resources can be appraised & developed as part of
company’s conventional Western Cooper Wet Gas Project
• Successful evaluation of these Unconventional Gas Prospective Resources
presents a material growth and economic opportunity for the company

* Defined at the end of this ASX release
Drillsearch Energy Ltd (ASX: DLS) is pleased to announce a significant increase in the Prospective Resource Potential of the Western Cooper Unconventional Gas Project.

Significant Increase in Resource Potential – 360% over previous estimate

The unconventional gas Prospective Resource potential of deep coal seams in the Western Cooper

Unconventional Gas Project Area has increased by approximately 360%.

This seems to me to be saying, we may have a lot more product to sell if we can work out how to get it to the surface.

More from the same announcement:

Drillsearch has just completed the second phase of an independent technical review with MBA Petroleum Consultants Pty Ltd (MBA) of the Prospective unconventional gas resource potential of deep coal seams in the Permian and Triassic formations of the Western Cooper Basin. This independent technical review is an extension of the earlier work completed by MBA prior to the award of PELA 513. It should be noted that Prospective Resources are as yet undiscovered and, as such, carry significant risk. Gas content, gas composition (gas may not only be methane) and certain coal parameters are poorly known and require specialist coal seam gas (CSG) sampling and testing, which will be addressed by near future drilling.

On 27 November 2009, Drillsearch previously announced the results of the independent review of the deep coal seam gas potential of the project area. The previous announcement indicated that the
unconventional gas Prospective Resource potential was between 2.7 to 5.4 TCF based on a gas-inplace of 10.9 TCF.

“Drillsearch is very encouraged by the results of the independent review for the overall unconventional resource prospectivity of the our permit areas in the Western Cooper,” Drillsearch Managing Director, Brad Lingo said.

“Our own exploration drilling in this area has shown that there are multiple, thick coal seams and the well logs has indicated significant gas contents. Previously this has been considered a drilling problem rather than an opportunity worth exploring further.”

“The independent review confirmed that these coal seams are extensively distributed throughout our acreage from a detailed analysis of 450 wells in the area and our extensive seismic coverage – both 2D and 3D – of the area.

Watch this space, I guess.

 

[Kevin Smith]

Now BPT are out of the way(in a sense) and some of the floodwaters have abated, production can go on.
I'd rather own DLS @ o.05 than BPT @ 0.75(or even 0.30).......those with patience (I stress endless?) will be happy they hung around.
Let's see where the earlier knockers are then.
Be Good!

 

[prawn_86]

Now BPT are out of the way(in a sense) and some of the floodwaters have abated, production can go on.
I'd rather own DLS @ o.05 than BPT @ 0.75(or even 0.30).......those with patience (I stress endless?) will be happy they hung around.
Let's see where the earlier knockers are then.
Be Good!

Welcome Kevin,

I know it is your 1st post, but please explain why you feel this is the case? ASF is for analysis and explanations, so the more details the better

Thanks

 

[Boognish]

I bought this stock at the absolute height and then took up the 12.5c float that came out on top of that so I hope our new mate is right.

 

[prozac]

Welcome Kevin,

I know it is your 1st post, but please explain why you feel this is the case? ASF is for analysis and explanations, so the more details the better

Thanks

Prawn, I think Kevin is another Drillsearch tragic. Not knocking you Kevin just that DLS are long on promises and short on action. The current board are self-serving. Don't expect anything great out of this company. Just being a realist. I did own a number of these and woke up one day to what was going on.

Good luck but I reckon you are better off out of them.

 

[pacestick]

DLS is in the process of absorbing INP although described as a merger it is in reality a takeover with 2.5 shares in dls being swapped for each share in INP. This gives the reformed company a increased number of prospective leases and prodycing fields but also increases the amount of shaews available. It values the INP shares at 16 cents a share . Market reaction was that INP rose strongly to 13 cents and DLS fell slightly

 

[prozac]

Looking-in on this thread it's been almost 2 years since my first post and warnings about the company's self-serving BoD. Not much has changed and that includes the woeful share price which is pretty much bang-on what it was when I sounded my first warning.

Since I ditched DLS I have turned a handsome profit in companies with real prospects, those not requiring constant capital raisings to continue to fund the cash burn.

I can only say to anyone thinking of investing in this company to do your research carefully. I wouldn't go near it again. :shake:

 

[Greedy_Kev]

I agreed this company is crap however, i think this company will do very well due to the QLD flood, since it knocks out alot of their competitors providing oil and gas in QLD such as santos.

This may have already been reflected in the current price, since the price suddenly spiked from 0.059 to 0.073 with no release of additional information.

However now that VIC is also flooding, maybe there is more to come, but i still not sure which part of VIC is effected and if oil producers such as VIC petroleum is effected.

 

[prozac]

There are many little oilers and species on asx you should look at before you invest in DLS. I could not recommend this company to anyone. My comments are not sour-grapes, a desire to bring down the board or to down-ramp the company.

Better put your money on the doggies imo.

 

[Miner]

Quiet market today to start and a quieter announcement 3 mins before market opening.
The 2 P reseve rose by 887% - no misprint. See attached.
Market normally reacts aggressively but the reaction was hardly noticable.
Interesting behaviour on DLS - all good news for last few weeks - no tangible visibility in the SP movement

 

[Julz86]

Very new to this forum first time poster and hoping to begin investing soon.

SP has dropped from 59c to 50c following an announcement of a share issue. Feeling very tempted to start buying at either 48 or 49? Future projects does seem promising although i don't particularly like the idea of such a huge share issue (50 million shares?) Seems like this is gonna result in a major dillution? Results from the past 6 months does not seem good too with a drop in SP since early 2011.

But it does seem pretty cheap now.

Any thoughts on this one?

 

[sreeve]

Drillsearch chart looking good. Major resistance line broken in January (line goes back a few years). This support line, at about 93 cents needs to hold.

Cheers
Scott

 

[mr. jeff]

sreeve nice chart, so far so good with the move and close above $1.

Exciting times, looks like they may be having a bit of takeover interest judging from the strong upwards move when viewed in comparison to SXY, BRU recently. Very solid support so far.

 

[mr. jeff]

I had a great exit at what I thought was the climax, but it has kept on going! When will it end?! At least I got out without watching my profits get away!

I just can't see this move continuing in this way. Surely the tide will turn.