Re Rating Time ??

Ive been in and out of SEA since under 10c and its been risky and frustrating at times, but i think they finally have a compelling sustainable model for rapid growth and a full blown re rating

I have recently sold out of all other O&G stocks and gone much higher exposure to SEA for the following reasons...(Thats not a suggestion for anyone to do so.)

1. A total refocus of its assets and capital towards the Eagleford
2. Improving margins that are sustainable due to rapidly increasing production and proportionally lower overheads, as well as improving techniques and inefficiencies
3. deleted - i want to sit on this one a while
4. Significant Increase in Eagleford acreage - this a major drawcard for me as it brings the economic advantage of scale-ability and growth longevity
5. Substantial Improvements in well results - Shannon 2H and 3H
6. Substantial increases in production going forward with likely further improving margins. 8500boepd Exit 2014 and Im projecting a possible 18000 - 19500 boepd exit 2015 based on current growth rates
7. A pipeline of well over 200 identified high grade targets
8. 16M + proved reserves 81M 3P

Management has become highly focused on the Eagleford as a growth driver and they are now succeeded in getting themselves into a position that can be scaled and reproduced over and over with better and better margins.... these margins are now becoming substanial

We have all seen this play out before... The similarities between this and another un named recently acquired Eagleford player .......well i will leave that up to you to decide...

Up until recently the other plays that SEA had going where always a worry and a possible capital eaters, they distracted from the real focus and they reduced the growth and appeal of SEA. But i think they have now turned the corner where the Eagleford and its revenue is driving very significantly growth at such a speed that the other plays are not going to matter. Id like to see them go 100% Eagleford, but that may take time.

Lets enjoy the bumpy ride of joy and frustration as the market catches on.... 40% in the last few months is a good growth....but ive been running the numbers on this quietly for months and I now think they finally stack up against other companies to the point where they simply cannot be ignored any longer... 1.38 seems expensive to those who havent run the numbers or dont know how to on a capital hungry growth stock... But as we know from a few years ago we proved them wrong