low sp given evaluation at 17 to 23 cents, page-3

mmm but their current PRODUCING ASSETS still values them at 12cps which is allmost double their current SP...but what do ya do???

Financial Analysis
Sun has A$2.5m in cash and forecast revenues of $A2m in FY08, which it is hoping to double in FY09 from its
US assets alone. The Company has 225.1m ordinary shares on issue and 26.3m options exercisable at various
prices between 10cps and 45cps.
Valuation
Our valuation is done on a risked basis given the resource potential, probability of success (“POS”) and
approximate NPV per bbl/mcf of the different tax regimes in which Sun operates. This gives a risked valuation
range of 17cps to 23cps, with an unrisked upside potential of 272cps. This valuation is based on current
ordinary shares issued only.
Sun’s two main producing assets in the USA, Flour Bluff and Margarita, underpin its share price at around
12cps. This effectively puts a floor on the downside risk associated with the Company. Flour Bluff has an upside
development leg to it which has been rated as a low risk proposition due its the proximity to already producing
wells. Redback, on the other hand, has been given a more industry standard rating for POS of 10%, but has
significant unrisked potential to the Company of over three times the current share price.
Valuation of the Thailand asset has been done on a conservative basis of 20mmbbls of oil in-place. There is
currently no indication of the potential at the existing discovery well, and there will not be any estimate until the
aeromagnetic and seismic programs are complete. Sun’s high working interest in Thailand means that any
success there will have a significant impact on the Company.
Sun’s Malta prospects have been significantly discounted, with a 1 in 200 chance of success, given the current
state of the border disputes. The un-risked valuations etc etc