sea bakken sale

SEA up 30% today on Bakken asset sale. Any views on what that means for MPO's Bakken assets?

Sale of South Antelope Field Represents a Significant Crystallisation of Value for Sundance
• Sale price of US$44,200 per acre demonstrates strong buyer interest in quality Bakken assets
• Generated a profit of US$150m, or 3x our total investment, and approximately a 75% internal rate of return over the 5 year investment period
• Sundance retains its other holdings in the Bakken play – Phoenix, Goliath and Manitou
• Frees up significant funding able to be used for debt repayment, redeployment into existing development projects and investment into new high interest Company operated projects
Sundance Energy Australia Limited (ASX: SEA, Sundance) is pleased to announce the divestment of its working interest in the South Antelope field in the Williston Basin, as part of the sale process undertaken by the Operator of the field, Helis Oil & Gas. Sundance retains its other holdings in the Bakken.
The sale price for Sundance’s working interest including approximately 3,900 acres is US$172.4 million in cash which is approximately 130% of the Company’s South Antelope Field 30 June 2011 PV10 of 3P reserves1 as calculated by Netherland Sewell. The transaction is highly value accretive for the Company and compares favourably to recent similar transactions in the Bakken. The sale equates to an implied price of
1 The discounted cash flows of the South Antelope reserves using a 10% discount rate of proved, probable and possible reserves, taking into account commodity prices of US$96.24 and escalating to US$101.32 per barrel in 2017 (and held constant thereafter), royalties, production lease operating expenses, and future capital expenditures but before income taxes.
ASX Announcement
24 August 2012
ASX Code: SEA
2
approximately US$49.00 per barrel of proved reserves, US$14.20 per barrel of 3P reserves and US$344,000 per barrel of oil equivalent produced per day.