Worth More Hedstrom has a 12-month share-price estimate for Sundance of A$1.20 a share, 60 percent above yesterday’s closing price. The company’s Bakken formation assets are worth about $15,000 an acre, and other fields about $5,000 an acre, higher than the $1,000-per-acre value implied by its A$0.75 share price, he said. Exxon Mobil Corp., the world’s largest energy company by market value, last week said it will pay about $2 billion for Bakken shale assets in North Dakota and Montana. Royal Dutch Shell Plc this month agreed to buy oil and gas fields in the Permian Basin for $1.9 billion from Chesapeake Energy Corp., paying about $3,131 an acre, data compiled by Bloomberg show. “The oil shale assets are certainly being looked at by companies that need long-term reserves,” Krista Walter, a Sydney-based energy, oil and gas analyst at RBS Morgans, said in a phone interview. “Asset sales are common but company takeovers can happen as well.”
SEA Price at posting:
74.5¢ Sentiment: Buy Disclosure: Held
