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SEA - Sundance Energy Australia

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wipz

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Hi guys,

Todays announcement:

"US$46.35 million (A$52m.) assets sale leaves Sundance debt free with substantial cash reserves"

Any idea what is on the cards for sundance in the near future. Not too sure on what they will do now they have sold their US interests..

Anyone else on this stock who can offer some insite. Cheers
 
Spoke too soon, company has released an announcement re: a presentation to investors.. They still have interests in a few locations in US (Indiana) and some Aus (SA & QLD) interests as well. Spudding well at Buffalo Creek shortly (US), a substantial drilling program for Whiskey Run planned for 2008 (US) and target in SA about to be spudded. With the cash from sale of interests, should be pretty full on the next 12 months for SEA. Any one else with any opinions / comments on this company. Cheers
 
Hi W

I found this post on another forum.

Might be a conversation starter re the stock.


Sold 10% of the assets for $ 55 millions. That puts the company value @ over 4 times the current value. The market looks bit sleepy today. IMO, DYOR.
Click to expand...

Current sp - 66c, up 18% (high of 69c today)
 
Another thing that may be interesting, one of the leases to be explored is in the Cooper Basin, PEL 100. Which seems tobe adjacent to Innamincka Petroleums recent discovery in Pel 101. Check the INP thread to see the result of that find on the share price.
C:p:
 
http://au.biz.yahoo.com/070918/30/1eiy9.html


The company holds stakes in five other US oil and gas prospects across about 275.18 square kilometres, including 100 per cent of its Phoenix prospect in North Dakota and about 50 per cent of its three prospects in Indiana.

"We'll retain interest in about six to eight producing wells and have four in Indiana being prepared for production and a couple more in North Dakota being readied for drilling," Mr McCoy said.

The company has a 23 per cent interest in a project in South Australia's Cooper Basin, where project operator Stuart Petroleum will drill the Cleansweep 1 Well in coming weeks.



http://www.stuartpetroleum.com.au/

STU

Stuart Petroleum is a specialist Cooper Basin explorer which was formed in 1999. Stuart's first oil discovery was in April 2002 with first production commencing in July of the same year. Stuart's drilling success and increased production through this success has seen Stuart grow to become the largest junior oil producer in the South Australian Cooper Basin.
 
Announcement today "STU: Daily Drilling Report - Cleansweep 1 Exploration Well"

Cleansweep 1 is currently being rigged up and will spud later today.
 
53c

Ann.

CLEANSWEEP 1 OIL SHOWS

South Australian based oil exploration and production Company, Stuart Petroleum
Limited (ASX Code: STU) today announced that the Cleansweep 1 exploration well has
drilled into the basal Birkhead Formation where oil fluorescence and cut was observed
over the interval 2128 -2133.5 metres.
The oil shows were accompanied by minor oil in the drilling mud and elevated gas
readings of 300 units on a background of 10 units.
Current operations are preparing to run Drill Stem Test 1 over the interval 2120 – 2133.5
metres.
Cleansweep 1 is targeting un-risked mean oil in place potential of 4.8 million barrels in
the Birkhead/Hutton, Poolowanna and Paning formations. Stuart is paying 100% of the
cost of the well to obtain a 50% interest in PEL 100.
 
Thanks moneymajix, SEA had fooled me by releasing first a drilling report, I didnt expect that announcement to come today!!
I have faith in Cleansweep, that is why I will hold. I think SEA is under the radar, I hope some more investers become interested in SEA. They are totally cashed up and have some exciting tenements.

Cheers
 
Announcement today (06/11/07):

CLEANSWEEP NEW OILFIELD DISCOVERY

The JV with STU have hit oil in PEL 100, 400 barrels per day (23.33% net to SEA).
Quite significate as this is the first discovery in the licence area.

I hope good times ahead as they drill more holes! Holding tight.

Also link to Cleansweep 1 in Scandinavian Oil & Gas mag:

http://www.scandoil.com/moxie-bm2/oil/exploration/cleansweep-1-discovers-oil-shows.shtml

Cheers.
 
Energy (SEA) is a company with oil and gas assets in Australia and the USA.


Just listed in the AFR Smart Money section - 20 stocks to watch in 2008.


Current sp - 46.5c.
 
50c

Up 11.111% today

Publicity in AFR looks like it has assisted this stock today.

Was not long ago in the 60s.
 
51.5c, up nearly 15%

Quite impressive on a down day.

Not much for sale.

Good to see some action in this stock.



Phoenix Prospect

The Phoenix Prospect is located in the centre of the Williston Basin in McKenzie County, North
Dakota, USA. At the time of its acquisition, the Phoenix Prospect was approximately 12,000 acres.
Today it is comprised of approximately 15,000 acres with an additional 5,700 acres pending
governmental approval.

The northwest corner of the prospect is located immediately southeast of the Blue Buttes Unit, a
Mission Canyon producing field, operated by Hess Corporation. This prospect's primary target
formation is the oil-bearing Bakken Shale; secondary target horizons include the oil-bearing Mission
Canyon, Nisku, Duperow and Red River formations. Since the acquisition of the Phoenix Prospect in
early 2007, the area surrounding it has seen increased exploration activity in the Bakken formation by
operators such as Continental Resources, Conoco Phillips, Headington Oil and Gas, Hess Corporation
and Helis. The preliminary results from these wells have been very encouraging with initial production
levels at or above accepted type curve for the prospect area.

Helis has already drilled and completed the Levang 3-22H, a horizontal Bakken well in which
Sundance has a working interest of approximately 3.28% (see the Company's web site and recent
Annual and Quarterly Activities Reports). The Levang well is sited adjacent to sections in which
Sundance is the primary mineral rights owner (which sections are included in the agreement), and
included a core of the Bakken shale as well as an extensive suite of logs. The important science
produced from this well will support the Company's ongoing geological and geophysical studies in
and around this prospect area, and will help it and Helis to evaluate future drill sites and design
appropriate drilling and completion techniques to maximize well performance in the prospect area.
Additionally, Helis has also drilled, and is in the process of completing, the Linseth 4-8H well, another
horizontal Bakken well in which Sundance does not own an interest.

The agreement was executed on 13, December.
 
Acorn Capital Ltd increased its interest in Sundance Energy
Australia Ltd on May 6 from 12 million (7.8pc) to 16.3 million shares (9.5pc).



36c.
 
Hi I bought this little baby today.... has lots and lots of positives going for it IMO

It has substantial acerage in tha newest shale hotspot in the US which is quickly becoming as interesting as Eagle Ford..... The Bakken in Nth Dokota...

The primary difference is the condensat to gas ratio is significantly higher and the drilling costs are significantly lower

bakken.png

Another huge postivie is the company is net cash flow positive with no debt....
They will earn approx 7m p.a at present which looks to be possible increasing rapidly and yet it has a market cap of just $20M and substantial assets of very high class...

I will post more in here soon...

On my calcs and IMO this little undiscovered Gem is very undervalued.....

Looking at its graph , there are some long term holders who have unfortunately suffered, but right now, based on the current situation and buy price it looks very very good indeed IMO

Disc - I do own, may trade and DYOR + Seek expert advice....
 
Hess plans to invest 25% of its 4 Billion exploration budget in the Bakken Shale....highlighting the significance of the Bakken as the next new hotpot for onshore US shale oil...
plans to invest about $1 billion per year over the next five years in the Bakken Shale in North Dakota with goals of boosting production from 10,000 boe/d today to 80,000 boe/d by 2015. Hess plans to ramp up to a 10-rig drilling program in the Bakken over the next 18 months and test dual-lateral horizontal wells targeting Middle Bakken and Three Forks/Sanish deposits. The firm maintains it has sufficient near-term Bakken pipeline capacity and infrastructure, but we'll watch this closely given constraints in the region
Click to expand...
 
Fom the age dot com in may 2009
Shows the underlying value of the Bakken assets...
If sundance can negotiate a successfull farm in partner to unlock this value by carryinga drilling program, they will IMO substantially appreciate...

Bear in mind as well SEA sp was at 10c a year ago when this announcment was made...they have significantly more income and assets since then, virtually same no of shares and are still at 10c...At that time they had annual production of only $2m comparred to approx $7m now....market cap was around $21M and is still $21 M

independent petroleum reserve certifier quantified the junior oil and gas explorer's assets in South Dakota, United States.

Ryder Scott said proven reserves in Sundance's Phoenix and South Antelope prospects amount to 3.411 million barrels of oil equivalent, based on US Energy Information Administration oil and gas price forecasts.

Proven oil and gas reserves are the highest rank in the sector's reporting code, and are considered to have a 90 per cent chance of being produced.

"This is an indication of the significant increase in the value of the company's underlying assets,".........Ryder Scott assessed 27 per cent of the 180 potential well sites identified by Sundance.
Click to expand...

Since this date SEA has had several producing wells come online, entered significant JV,s sold assets....

Below is a comparison from Investor Presntation dated 4th Dec 2009 of SEA to its peers... clearly indicating IMO its value to price...You will see that SEA has more production revenue then some companies valued at 15 - 20 times the market cap...but DYOR and seek ept advice.... these figures are 12 months old....
sundance.jpg

DYOR and seek expert advice, but IMHO this is significantly undervalued.... right now i envisage an sp ofmuch higher would be more realistic.... at presnt its operating at around a pe of 2 for a debt free net cash flow positive producer with significant assets in producing zones... seems IMO a bit rediculous...
 
From most recent SEA quarterly cash flow report dated 31 Dec 2009

Revenue from sales = 1,937,000 for the quarter and 2,927,000 for the 6 months indicating revenue is strong and climbing

Admin and production costs ad up to around 938,000 for the Q

Leaving net (no expl or dev) earnings of approx $1m per quarter and rising
= approx $4m per annum and rising...

They raised 2.36M from shares and ops for the Q
They started quarter with 3,509,000 and finished with 5,600,000 which equates to a net loss of only 269,000 despite spending 1.5m on development and exploration.....

Given the above SEA , IMHO is in a very good position going forward with good cash flows to fund operations, explorations and development, with 0 debt and very irregualrly hitting up shareholders for additional capital or diluting through institutional offers...

And these figures do not allow for Boomerang which is now showing excellent figures, and with another 6 of the 17 wells to spud early in Q2..note many are small Working interests, but also many are free carried
 
It would seem some folks are discovering this little baby, bith better volumes and higher prices of late....

DYOR and seek expert advice, but in my opinion worth doing your own analysis on....

I own - but not enough yet
 

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