Quarter ending 31 March, gave the following well Production
- No new wells online, producing 7000boe/day
- Drilled 2 gross (1.9 net) wells
- Drilled a third well (1 net) well
- Next scheduled well started 12 April 2018
SEA has US$130M of liquidity available, and funded for the rapid development that should see 35-40 wells per
twelve month period resulting in significant growth in production, additional proved reserves, cash flows and net asset value per share:
- Forecast average 7000-7500 boe/day in 1st half 2018
- Forecast average 9000-10,000 boe/day in 2018, EBITDA of US $110M
- Forecast average 21,000-22,000 boe/day in 2019, EBITDA US $250M
SEA appears to have debt of US$200M and will become a leading pure play Eagle Ford operator. SEA has 57,000 net acres and 2P Reserves of 170.7 mmboe (with a PV-10 of
approximately US$963.6 million as estimated by Ryder Scott at year end 2017 based on NYMEX strip pricing).
SEA now has 6,867,696,796 Shares on issue (with 3,990,500,740 Shares having been placed at $0.059 to raise US$260M).
Market cap at $0.065 = AUD $446M
Add debt of US$200M = AUD $285M
Enterprise value = $731M AUD.
Compared to the US $963M PV less US$200M debt = US$763M = AUD$1,090M = $0.16 share price.
Other metric is the EV /2P reserve - recent takeover acquisitions seem to occur at 10x the 2P reserve.
SEA has 2P reserves of 170.7 mmboe
Applying 10x metric = AUD $1707 Enterprise value
Less AUD$285M debt = AUD$1422M = $0.21
I do believe we could see $0.16 - $0.21 share price quite soon. This only popped up on my radar yesterday and at the current share price of $0.064, I was quick to bite today and will continue to accumulate until I have a good sizeable chunk.
I see an uncanny resemblance of Aurora Energy here (AUT pre takeover), especially given the aggressive development campaign and the forecast EBITDA of US$250M (AUD $360M - that is almost today's market cap).
This is leveraged to the increase in price of oil, and appears to have downside support at $0.059 (given 4bn shares or US $260M were placed at $0.059)
This now closely rivals the other gem I hold.
What an 18 months this could be!!!!!
- Forums
- ASX - By Stock
- SEA
- SEA Value Proposition
SEA Value Proposition
-
- There are more pages in this discussion • 52 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add SEA (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
UNT
UNITH LTD
Idan Schmorak, CEO
Idan Schmorak
CEO
Previous Video
Next Video
SPONSORED BY The Market Online