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!
Great report from Euroz with a target now of 68c
Stand -by, I reckon Condog is going to be all over this.
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