Thanks for that naga00, for those of you that can't be bothered looking for the article, I believe this is it;
SDCJF(.355) ( Australian symbol sea.ax- primary exchange}. We have been involved in SDCJF from 2010-2011 when the company was only producing around 650 BOEPD! At present SDCJF produces over 9500 BOEPD. This management team is sterling! They buy low ever time and sold really HIGH, which allowed them to grow and concentrate on the "big" prize in their opinion- being the Eagleford! They have cash, low debt, stable production and are not in any rush to drill at current levels. Most of their acreage is already bound by production so there is little reason to drill "willy nilly ! As mentioned, this management team is stellar and they continue to turn coal into gold for 100"s of millions of dollar during their history. Visit their website www.sundanceenergy.com.au and review their 4th Q earning call with presentation. Review their March 9, 2015 presentation.
The tail wags the head in this situation because the primary market is Australia and as you know the Australian Dollar has been creamed and because of this it weighs on SDCJF's shares. So we get it both ways. All their acreage and production is located within the US and we are controlled by the severe weakness in the AU dollar. Regardless, when you consider the reserves & the lean and mean management team that continues to steer SCDJF you must build a position in this stock at current levels. Again, if we have a temporary crash in crude we would continue to average down on this junior core holdings. We view SDCJF as an attractive takeover candidate worth around $2.00 a far cry from the current depressed levels of .355. We rate SDCJF with a strong buy rating at current levels.
Additional info: 2014 Annual report was just released. Visit the corporate website and review this excellent doc.
Food for Thought: P1+P2+P3 have an estimated value of $1.5 Billion dollars! The current market cap is only around $200 million! Get the picture!
Exit rate for 2014 was around 9500 boepd- Exit rate for 2015 is estimated to be around 8500 boepd.
The company states that they will be actively looking for a M&A candidate. In my opinion, they should look out themselves! The big fish eat the little fish!
We are pounding our hands on the table concerning SDCJF!
SEA Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
