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!!!!!
SEA Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
