There hasn't been the newsflow people were probably expecting over the last couple of weeks, but I think there is some reasoning behind that.
In the acquisition scheme booklet, it mentions:
1. [Sundance will] "seek to increase its acreage position around its core assets in McMullen County, Texas, USA via leasing and acquisitions".
2. "Sundance continues to organically grow its acreage position by leasing acreage prospective for the Mississippian and Woodford along with other targets in the area".
The ramifications of releasing results from wells whilst deals are taking place are obvious and can be damaging from a value perspective. If I were a betting man, I'd be putting money on SEA keeping news on the down low whilst they negotiate acreage deals, a good business practice which pretty much any 'acquisition mode' O&G company would do.
The March 25 deadline is coming up soon, and if a deal is being finalised we might not hear about it for a week or so after that date IMO. Then again, SEA have mentioned they might be able to extend the March 25 deadline by another 6 months due to the Merger. Regardless of what's happening, hopefully we can get a general idea as to what's been taking place over the next few weeks.
SEA Price at posting:
$1.01 Sentiment: LT Buy Disclosure: Held
