Australian (ASX) Stock Market Forum

SEA - Sundance Energy Australia

Jump to new
Thanks naga00, just having a look at their past e-mails now.
The SSN info is interesting, I'd assume most SEA holders have a few of the other US Oil plays on the radar (TXN, SSN, AUT etc).


From their 1 July alert:

ALL THE ABOVE INVESTMENTS REMAIN STRONG BUYS~

sdcjf.pk--NEW BUY RECOMMENDATION .17

SUNDANCE ENERGY LIMITED (SDCJF.PK--.17 US) IS AN AUSTRALIAN BASED CORP, BUT ALL MOST OF THEIR PRODUCTION AND PROPERTY IS LOCATED WITHIN THE OILY AREAS OF THE WEST, NAMELY, NORTH DAKOTA, WY AND COL.

I INVITED ALL INVESTORS TO VISIT THEIR WEBSITE: WWW.SUNDANCEENERGY.COM.AU OR WWW.SUNDANCEENERGY.NET

THE SITE IS FULL OF VALUABLE INFORMATION THAT WILL LEAD YOU TO THE SAME CONCLUSION THAT WE AT WWW.SAADVISORY.COM HAVE CONCLUDED, THAT SDCJF.PK IS A SCREAMING BUY AT CURRENT LEVELS AND YOU MUST OWN A POSITION AT CURRENT LEVELS!

YOU MAY ALSO GO TO THE AUSTRALIAN TRADING SITE -WWW.ASX.COM.AU AND USE THE SYMBOL SEA-- THERE YOU WILL FIND A COMPLETE LIST OF ALL FINANCIAL FILINGS- THE APRIL 30TH 2010 FILINGS ARE A MUST READ- THERE ARE 3 OF THEM!ALSO READ THE CORPORATE REPORT JUST RELEASED ON 6-24-2010- US PROSPECT TOUR- A 95 PAGE DOCUMENT THAT TELLS THE WHOLE STORY AND WILL INDICATE THE SEVERE UNDERVALUED NATURE OF SDCJF.PK!

IN A NUTSHELL:

OIL AND GAS COMPANY IN THE MOST EXCITING SHALE AREAS OF THE USA.

238 MILLION SHARES FULLY DILUTED WITH 10 MILLION OPTIONS OUTSTANDING- RANGING FROM .38-.70(AU)

COMPANY HAS ZERO DEBT

BK VALUE AROUND .18US- AROUND $41 MILLION IN EQUITY (STATED)

ACCORDING TO MANAGEMENT: OVER $9 MILLION AU IN THE BANK

CURRENT PRODUCTION AROUND 311 BOEPD

ACCORDING TO DOCUMENTATION /MANAGEMENT- ANTICIPATES 1000 BEOPD BY THE END OF 12-31-010

CURRENT 1P RESERVES- AROUND 3,400,000 BOE - THIS NUMBER IS FROM LAST ANNUAL REPORT- WE ASSUME THAT AN UPDATE AND UPGRADING OF 1P WILL BE RELEASE WITHIN THE NEXT 30 DAYS.

DURING APRIL 2010 SDCJF.PK ANNOUNCED THAT IT WILL BE PARTICIPATING IN 40- 50 WELLS BEING DRILLED IN THE BAKKEN WE INTEND TO VALUE THE RESERVES (3.4 MILLION 1P) @ $30.00/BARREL OR A TOTAL VALUATION OF $102,000,000.00US

THIS DOES NOT INCLUDE 2P AND 3P.

ACCORDING TO DOCUMENTS (APRIL 30TH 2010 PAGE 4) TOTAL GROSS ACREAGE CONTROLLED BY SDCJF.PK IS 459K - TOTAL NET ACREAGE IS 143K

OUR INTEREST AT THIS TIME IS ONLY THE MOST OILY!

9,000 NET ACREAGE IN BAKKEN- THIS IS MADE UP OF THE GOLIATH PROSPECT,SOUTH ANTELOPE AND THE PHOENIX PROSPECT-WE VALUE THESE AT $4200.00/ACRE OR $37.8 MILLION .

13,482 NET ACRES ARE LOCATED IN THE DJ BASIN ( NIOBRARA )- THE PROPERTY IS LOCATED IN COLORADO. WE ARE ASSIGNING A $2000/ACRE VALUATION (RECENT SALE OF ACREAGE HAS RANGED FROM $1000-$3000/ACRE) WITH A RESULTING VALUE OF $27 MILLION.

THE ARIBA PROSPECT WHICH SDCJF.PF OWNS 32,000 NET ACRES - WE VALUE IT @ $250/ACRE OR $ 8 MILLION -- THIS ACREAGE COULD BECOME EXTREMELY VALUABLE AS IT BECOMES DE-RISKED.

WHEN WE ADD ALL OF OUR CONSERVATIVE VALUES:

$9 MILLION CASH + $102 MILLION RESERVE VALUE + $37.8 MILLION BAKKEN ACREAGE + $27 MILLION NIOBRARA+ $8 MILLION ARIBA= $184,000,000.00!

THIS NUMBER IS ALMOST 4.5X THE STATED BK OF SDCJF.PK--USING THE 238,000,000 SHARES OUTSTANDING WE GET A BK OF .77!!

CONCERNING PRODUCTION- CURRENTLY RUNNING AROUND 311 BOEPD- USING $75/BOE YIELDS AROUND $8 MILLION/YR--- MANAGEMENT INDICATES THAT PRODUCTION WILL REACH 1000 BOEPD BY THE END OF 2010- USING $75/BOE THAT RESULTS IN $27 MILLION IN GROSS REV ON A YEARLY BASIS!- PLEASE KEEP IN MIND THAT SDCJF.PK IS CURRENTLY PARTICIPATING IN A DRILLING PROGRAM THAT HAS PARTICIPATION IN 40-50 WELLS WITH INTEREST RANGING FROM LESS THAN 1% TO AROUND 25%

ALL OF THIS DRILLING IS PRIMARILY IN THE BAKKEN, LOCATED IN THE WILLISTON BASIN, NORTH DAKOTA.

SDCJF.PK ALSO CONTROLS A LARGE LEASE HOLDINGS IN THE MIDWEST OF THE US- WE HAVE LITTLE INTEREST IN THIS ACREAGE.

OVERALL: WE HAVE GROWING PRODUCTION, WILL HAVE GROWING RESERVES AS WELL ADDITIONAL PRODUCTION COMING ONLINE, WE HAVE AMPLE CASH AND GROWING CASH FLOW, WE HAVE PRIME OILY PROPERTIES IN THE HOTTEST DRILLING AREA IN THE US, WE HAVE HIGHLY EXPERIENCED MANAGEMENT , THERE IS NO DEBT AND HIGHLY OUT OF LINE WITH RESPECT TO STATED BK AND CURRENT ASSET VALUATION, WHICH WE HAVE CALCULATED IN A PRIOR PARAGRAPH.

OUR ASSET VALUE IS AROUND .77US- IT IS NOT UNUSUAL FOR OIL AND GAS EXPLORATION COMPANIES TO TRADE AT 3 TO 5 TIME BK- THAT COULD EVENTUALLY YIELD A SHARE PRICE OF $2.31 TO $3.85/SH. WE ASSUME BY THE END OF 2010 WHEN SDCJF.PK HAS COMPLETED THE CURRENT DRILLING PROGRAM THE 1P RESERVES WILL SKYROCKET- JUST LOOK AT WHERE THEY ARE DRILLING! HONESTLY WE BELIEVE THAT SDCJF.PK SHOULD BE TRADING FOR AT LEAST $1.00 BASED UPON ACTUALLY VALUE THAT HAS BEEN DOCUMENTED!

FOR THE PAST 1 1/2 YEARS WE HAVE BEEN HEAVILY INVESTING IN THE BAKKEN AND HAS HAD EXCEPTIONAL RESULTS- BEXP, AXAS, USEG, KOG SSN AND AEZ!

WE STRONGLY BELIEVE THAT SDCJF.PK IS GOING TO BE A BIG WINNER FOR US AND BELIEVE THAT YOU SHOULD BUY AS MUCH AS YOU CAN AT CURRENT PRICES. THE AUSTRALIAN MARKET IN OUR OPINION DOES NOT UNDERSTAND THE DYNAMICS OF THE BAKKEN AND NIOBRARA AND THEREFORE HAVE NOT TAKEN FULL ADVANTAGE OF THE HEAVILY DISCOUNTED ASSET! THE ADR'S THAT TRADE IN THE US ARE A SMALL FRACTION OF THE VOLUME, BUT IN MY OPINION THAT IS ABOUT TO CHANGE. IF MANAGEMENT IS NOT CAREFUL SOME LARGER FISH IS GOING TO COME ALONG A SWALLOW THEM UP AND THAT IS NOT A BAD THING EITHER ESPECIALLY WHEN YOU CAN BUY THIS OPPORTUNITY FOR .16-.18/SH.

WE RATE SDCJF.PK WITH A STRONG BUY RATING WITH ALMOST NIL IN DOWNSIDE RISK. THE COMPANY IS FULLY REPORTING AND IN GOOD STANDING UNDER THE SECURITY LAWS OF AUSTRALIA. WE ASSUME THAT AT SOME POINT IN TIME THAT MANAGEMENT MAY DECIDE TO BECOME FULLY REPORTING WITH THE SEC FOR ADDITIONAL TRANSPARENCY.

AGAIN, IF YOU WANT TO MONITOR THE ISSUE IN AUSTRALIA VISIT WWW.ASX.COM.AU AND USE THE SYMBOL SEA.

WE INTEND TO MONITOR SDCJF.PK FOR % GAIN PERFORMANCE!
Click to expand...
 
mofra the cat

txn does not trade in the USA~ very interesting opp in my opinion~ I am playing azz that does trade in the USA as azzef.pk~ I am sure that you are aware of this australian!
Concerning SEA~ we should see a update any minute! The Henderson which they own 20% is the well that I am waiting for results!
Hard to understand that there are actually sellers in this stock at this price! The upside potential is huge during the next 6-12 months and beyond~ I assume after talking with management that they prefer to be very careful in their boepd of 1000 for 2010 and 2000 for 2011! I believe that number will be larger and drilling will be robust! According to management the company will jv 114 well during 2011! With this news investor in Australia sell the shares for a few pennies!
 
Welcome nagaoo,
Looks like this is another stock to put in a drawer untill after Christmas.
I think it's time to start working out who is going to buy out who in the region.
Surely it's unlikely to think that all the players in this area, SEA, AUT, EKA, TXN etc etc are going to remain in the next 12 months.
Enjoy the ride.;)
 
assasin- thank you for hello!

in the states as mentioned txn is not on the "pinks" and cannot be purchase! I am going to look into opening an account with an australian online trading firm- not sure that american's have the proper info and now sure about the tax situation! will look at your eka
my other favorite domestic oil in the states is axas- eagleford,bakken,niobrara holdings , 4000 beopd and much more for $3.00
favorite asian stock and cheapest stock in my Universe is awrcf.ob
 
SEA - Sundance Energy Australia- new update-wow

just released update from sea- additional production, 18 wells waiting on completion or drilling completion, drilling in the niobrara and reminds the investor that they are on track to reach 1000 boepd by end of 2010.
the real hold up is the limited crews of frac'er- also involved with 7 rigs drilling!
Cannot understand why australian investors are selling this super cheap stock for a few cents of gain! This stock is worth dollars whether US or Australian! this stock is a game changer!
 
Seems that every oiler in the region is having trouble getting fraccing crews.
Might be a great job opportunity.
Great news for SEA holders.:)
 
Certainly moved today on the last ann (on track to meet forecasts).
Up over 10%, sellers have dried up and the price is firmly in blue sky territory :)
 
Great report from Euroz with a target now of 68c
Stand -by, I reckon Condog is going to be all over this.:)
 
my largest position is sea
still hold a little ssn-
into ete-- longer term sleeper
finally hold azz - which today is halted until nov 11 because of sale of property in texas- eagleford- who is the luck buyer?
Can you imagine - sea has 18 well in various stages of completion- think ssn is just dead money and almost thought about selling the position and getting back in later
 
Naga, SEA is one of only two speccies held (14 blueys held) and has become my largest holding too due to price growth. Comfortable with not lightening the holding due to management and price activity to date.
 
as said earlier~ hard to understand why investor have been selling sea for a few penny gains when the party has barely started?
In my conversation with management from June 15th- with their conservative est. and continued performance- how can you sell?
18 wells currently being completed or frac'ed and 118 jv wells for 2011!
Maybe the invests that are selling cannot read and able to understand!
what is your other "special" oil
 
Hey Naga I've sold about 8000 shares today (half my holdings) due to the increase in price, 45% profit (bought at 34 cents) in about a month or so. By any measure that's an incredible return, I understand why you'd think that people are selling out "can't read", but as profit targets are hit money should be taken off the table imo, it's all up to investors style and preferences.

That being said I'm still very bullish on SEA (hence not selling all of my shares), and I'll be looking to buy back in on a dip if there are any, 2011 onwards looks very positive for SEA, underrated by many benchmarks (EV/barrels of oil etc) so we're still cheap despite the increase in price.

:2twocents
 
parle- understand profit motive, but discount value and in your face upside potential should indicate that this is not a sale! A 45% return in a month is great, but in reality it is meaningless in the big picture- only 5% of their property has been reserved, they are drilling jv 118 well in 2011, they have 18 frac jobs in progress or to be in progress, their acreage is in the sweet spot- so you made .15 on 8000 shares- parle that is not a huge amount of money! Hopefully, you will have the opportunity to jump back in on the usual dip! Personally, I am unable to sell because the discounted value and future potential is so great that my trading habit will not allow me to press "enter" ! This is a multiple dollar stock sooner than later or a buyout candidate!
 
Awesome numbers for Friday's opening... The DOW is slightly down but massive Buyers vs. Sellers ratio.... :) Hopefully we will add a few more cents before the weekend. :) Very impressed with the SP movement yesterday!
 

Attachments

  • SEA.jpg
    SEA.jpg
    34.7 KB · Views: 206
Even better numbers for Monday's opening.... big sell numbers from 52 - 55c. Noting a gap at 53c too. So I guess hopefully a nice 2-3c rise tomorrow??:cool:
 

Attachments

  • SEA.jpg
    SEA.jpg
    33.5 KB · Views: 177
Id like to be all over it, but im cash strapped due to a CGT position. My old man is all over it.

Good on you guys - this is one juicy stock, easily the next AUT imo.
 

Similar threads

ducati916
May DDD
2 3 4
Replies
69
Views
6K
qldfrog
qldfrog
kahuna1
Iran Is not Iraq
3 4 5
Replies
93
Views
12K
Dona Ferentes
Dona Ferentes
exberliner1
LIT - Livium Ltd
2 3 4
Replies
73
Views
27K
frugal.rock
frugal.rock
P
TFL - TasFoods Limited
2
Replies
30
Views
13K
divs4ever
divs4ever
prawn_86
Bush Family Hedge Fund in Trouble
Replies
5
Views
5K
gfresh
G
Top