Drillsearch Energy Limited shares leap, again

Drillsearch Energy Limited (ASX:DLS) shares soared 12 per cent after the junior oil and gas company announced it has signed a Gas Sale Agreement with the South Australian Cooper Basin JV.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Drillsearch Energy Limited (ASX:DLS) shares soared 12 per cent after the junior oil and gas company announced it has signed a Gas Sale Agreement with the South Australian Cooper Basin JV.

The agreement allows the immediate commercialisation of existing Middleton and Brownlow wet gas discoveries and as a result further wet gas exploration drilling will commence immediately.

Managing Director, Brad Lingo said…

"This project brings the Company one step closer to becoming a significant gas supplier into the Eastern Australian gas markets…. Delivering this initial pilot project gives us confidence for future investment in exploration and development of our wet gas play areas (PEL 106A, PEL 106B and PELA 513) to establish Reserves for future sale into domestic and or export gas markets."

Drillsearch recently told investors their very clear objective for the 2012 financial year was to increase reserves, increase production and increase cash flow.

In recent years, the company has had an excellent run with the drill bit, as shown by this slide from a recent presentation, saying…

"Over the last 3 years we have also drilled 14 development production wells all drilled on 3D seismic and achieved a 100% success rate with each of these well either in production or awaiting commencement of production early next year."

Drillsearch no longer flies under the radar. With a share price of 75 cents the company has a market capitalisation of $230 million.

As an emerging producer, they are the type of company that might fly onto our Foolish radar. We'll drill a little deeper.

More reading:

Let's get greedy together
One MAD-cheap emerging oil producer on our radar
$200 oil in 2012

 

 

 

More on ⏸️ Best ASX Shares

Three travellers laughing and smiling outside an airport
⏸️ Best ASX Shares

If you'd invested $2,000 in Webjet (ASX:WEB) shares 10 years ago, here's what it would be worth now

The travel expert has proved a winner for long-haul investors...

Read more »

illustration of three houses with one under a magnifying glass signifying mcgrath share price on watch
⏸️ Best ASX Shares

The 5 best ASX real estate shares of the 2021 financial year unmasked

Office space, industrial storage, retail malls and residential. These companies cover them all.

Read more »

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium
Energy Shares

5 best ASX energy shares of the 2021 financial year revealed

As the world emerged from initial COVID lockdowns, the demand for energy soared.

Read more »

best asx 200 shares of financial year 2021 represented by 2021 formed with gold piggy bank
⏸️ Best ASX Shares

Meet the best performing ASX 200 shares of FY21. Are yours on the list?

These companies have been crowned the best of the best in FY21...

Read more »

retail asx share price represented by shopping trolley full of cash
⏸️ Best ASX Shares

How I'd build a 'best stocks to buy now' list

Focusing on the quality and prices of companies from a diverse range of sectors could make it easier to build…

Read more »

asx share price on watch represented by investor looking through magnifying glass
⏸️ Best ASX Shares

How I'd aim to find top shares to buy in March 2021

Comparing companies with their peers and considering how they might change in future could allow an investor to find the…

Read more »

Brest ASX shares represented by piggy bank surrounded by autumn leaves
⏸️ Best ASX Shares

Top ASX shares to buy in March 2021

Our Foolish contributors have compiled a list of some of the ASX shares experts are saying to Buy in March.…

Read more »

rising asx share price represented by man with arms raised against blackboard featuring images of dollar notes
⏸️ Best ASX Shares

Why the Wesfarmers (ASX:WES) share price has soared 24% in a year

The Wesfarmers Ltd (ASX:WES) share price has been a solid performer over the past year. Here's why this ASX blue…

Read more »