SEA - Sundance Energy Australia

[skc]

Sorry SKC you're right, my last post did seem to imply that, I'm quite tired from work so you'll have to forgive the sloppy posting.

"So do u guys think the SP will go back to that 51c price and then start to build again maybe?"

I meant it as in, SEA doesn't 'have' to touch 51 cents before it goes higher, because the additional selling pressure from the placement will all but disappear as it approaches that mark, and it'll only be left with what I call the "natural" selling pressure (e.g. people losing patience with the stock, the 365 day CGT time limit expiring, etc etc). However it may well go below 51 cents, but it would be a stretch to blame the recent falls from 60 cents purley on the placement pricing.

(Hope that explains it a bit more clearly)

Fair enough. The relationship between cap raising price and share price varies greatly between different shares. Often the last issue price act as some sort of resistance, but other times the share price can fall right through below the issue price with no hesitation what so ever...

Esp with small companies raising capital - they tend to pick their timing just after the SP peaked (sometimes at levels that cannot be justified) and so the "natural" selling pressure alone can bring prices down to earth rather easily. Anyhow, since I know nothing about SEA I better butt out now

 

[Assasin]

Sorry SKC you're right, my last post did seem to imply that, I'm quite tired from work so you'll have to forgive the sloppy posting.

"So do u guys think the SP will go back to that 51c price and then start to build again maybe?"

I meant it as in, SEA doesn't 'have' to touch 51 cents before it goes higher, because the additional selling pressure from the placement will all but disappear as it approaches that mark, and it'll only be left with what I call the "natural" selling pressure (e.g. people losing patience with the stock, the 365 day CGT time limit expiring, etc etc). However it may well go below 51 cents, but it would be a stretch to blame the recent falls from 60 cents purley on the placement pricing.

(Hope that explains it a bit more clearly)

Hi Frenchy,
I think a few things have come out of the recent CR but as reported on this thread before by others, the main thing was the value and strength that has been added to SEA.
For the short-termers, how far the sp retracers is important but if your looking at longer term as I am, then I'm just seeing it as a time to increase holding.
Hopefully in time we'll recall disussing how far the price will retrace to with the regret that we didn't buy more.
I'm completely confident with the fundamentals of SEA and growth prospects which is whats driving my thoughts. Seems to be following AUT in many ways which I've been in since 30c.

 

[BrightGreenGlow]

Once again big pressure on buyers. Not many sellers and good upward movement the last few days... so far today up another 2.5c Hopefully we can break the 60c!

 

[BrightGreenGlow]

Strong Buyers are pushing towards another 52 weeks high today Oil prices up and DOWJ up.

 

[BrightGreenGlow]

Production Update was out today and SEA fell 1.5c. Not 100% sure on how to read the market's expectation... I take it people thought there would be more boepd?

 

[BrightGreenGlow]

Up to another 52 week high today. 64.5c and looking strong with not many sellers again.

 

[Assasin]

Yeah, it had to happen didn't it.
Seriously though, if you were looking for a nice little stock, with a great business plan, proven acreage, great results and a busy forward program, what a beauty SEA is.
Oil prices don't look like coming down anytime soon and demand globally is growing.
Merry Christmas.:xmaswave

 

[BrightGreenGlow]

Merry Christmas indeed, another new high just a few minutes ago. Up to 0.66c. Great work again, very limited sellers....

 

[ParleVouFrancois]

Acorn out with a new holding annoucement, from 6% to 8% they have been increasing exposure in recent times. It's probably what's been pushing up the share price quite rapidly, I'm thinking that Acorn will aim to buy anywhere between 10% to 15% of the company (flicked through a few of their other investments, they don't seem the type to be the majority holder, but a "major minor" holder seems to be their style). Brilliant stuff and hopefully their interest will spur some other smaller cap focused funds to invest.

 

[BrightGreenGlow]

SEA ended up anything 2c in the positive and hit a new high of 70c. Looks like only up from here... big support at the 60c ish levels

 

[gsnz1]

kudos to clown333

WilsonsHTM Coverage
Sundance Energy Australia Limited (SEA): Initiation of Coverage

We are initiating coverage on Sundance Energy (SEA) with a Buy rating and price target of $0.88/sh. SEA is a petroleum exploration & production company focused on unconventional oil and gas prospects in the US, primarily in North Dakota (Bakken oil shale), Colorado (DJ Basin tight gas and oil shale) and Illinois (New Albany gas shale), and in Australia via its partnership with Beach Energy. SEA acquires and develops positions in early stage resource plays and applies technology to grow production and reserves. Although the share price has risen strongly since mid year we expect further upside given growing production and reserves.

 

[Mofra]

Acorn out with a new holding annoucement, from 6% to 8% they have been increasing exposure in recent times. It's probably what's been pushing up the share price quite rapidly, I'm thinking that Acorn will aim to buy anywhere between 10% to 15% of the company (flicked through a few of their other investments, they don't seem the type to be the majority holder, but a "major minor" holder seems to be their style). Brilliant stuff and hopefully their interest will spur some other smaller cap focused funds to invest.

Seems they have ramped up the buying in recent times; price action again sharply upward, as it has been since SEA announced their Dec production targets look lokely to be met. It will be interesting to hear from the company in Jan about likely FY production targets.

 

[BrightGreenGlow]

The development update was announced today and all good news too. 19% increase in production and I think thats inline with their end of year target.... technically SEA is having a great run and should continue with the latest depth... good to be a holder right about now!

 

[Mofra]

Merry Christmas SEA shareholders, another positive announcement with an agreement signed with Haliburtan (alleviates some of the scheduling/resourcing issues) and Macquarie (extra funding for drilling) with SEA still holding a majority interest in the Nibrara area.

SEA management appear to be a very sound bunch of operators IMO, fits the company strategy perfectly.

 

[cmxd]

Sundance stock jumps 7% on oil deal

December 24, 2010 - 11:24AM
Sundance Energy has struck an agreement with US oil services giant Halliburton and Macquarie Group to hasten drilling work at its Niobara project in the United States.

Halliburton and Macquarie will participate in up to 40 per cent of the Sundance acreage at its Silo and Bull Canyon prospects in states of Wyoming and Colorado.

In morning trade, shares in Sundance were trading up 3.5 cents, or 6.9 per cent, at 54.5 cents.

Advertisement: Story continues below
Niobara is located in the Denver-Juleburg Basin, which extends into Colorado, Wyoming, Nebraska, and Kansas.

Adelaide-based Sundance will receive a non-refundable participation payment of $US2.4 million ($2.39 million) in cash, under the deal.

Halliburton and Macquarie will also pay up to $US3.9 million ($3.89 million) in development costs for a total consideration of about $US2500 per acre.

The agreement requires the participants to begin drilling a horizontal well within 90 days at Niobara share prospect in Colorado.

Niobrara is prospective for oil and natural gas.

Halliburton and Macquarie will be able to earn up to a combined 40 per cent of Sundance's working interest in both prospects by drilling a number of wells.

"Sundance retains operations of the prospects and an overriding royalty interest, while Halliburton will provide certain project management services for the development and evaluation of each of the earning wells," it said.

From:"http://www.smh.com.au/business/sundance-stock-jumps-7-on-oil-deal-20101224-196xt.html"

 

[Assasin]

Well thats a nice Christmas gift. These guys are great deal makers.
Any bets on who's SP can go higher on %'s next year. AUT or SEA or even EKA?
Merry Christmas everyone and thank you all for your contributions.:xmaswave

 

[BrightGreenGlow]

Great deal..... offload 40% and cash in again. Market loved it too... another 52 week high recorded and back to strong pressure on buyers. Merry Christmas

 

[ParleVouFrancois]

Merry Christmas everyone, brilliant announcement, cheers to Condog for highlighting this company a while back to me when it was under 35 cents per share (traded in and out a few times so I'm not up 100% yet but getting close!) I'd shout you a beer but I live in the middle of nowhere so you'll have to make do with a shoutout on the SEA thread. I remember that you said you couldn't buy any SEA considering capital gains tax on AUT, so even more props for not holding the share you're spruiking!

PVF.

 

[xyzedarteerf]

Sundance stock jumps 7% on oil deal

In morning trade, shares in Sundance were trading up 3.5 cents, or 6.9 per cent, at 54.5 cents.

From:"http://www.smh.com.au/business/sundance-stock-jumps-7-on-oil-deal-20101224-196xt.html"

These prices seems to be SDL not SEA.

 

[justiceotp]

Yes it is referring to SDL by mistake and if you read the SDL announcements they got a boost in share price and a speeding ticket for it. Makes you wonder if SEA would have gone up further had they been buying SEA and not SDL in mistake.
SDL announcement below. someone screwed up big time.
http://www.asx.com.au/asxpdf/20101224/pdf/41vx2w2b3fpjb1.pdf