EKA is meaningfully undervalued versis its primary peers - AUT...

EKA is meaningfully undervalued versis its primary peers - AUT and TXN (ie. Eagle Ford Shale players). EKA trades on an EV/net acreage valuation of $11,600/net acre v ~$30,000 for TXN and $65,000 for AUT. On an EV/2P reserves EKA trades on $15/boe; TXN on $36.7/boe and AUT on $50/boe.

EKA has recently increased thier net acreage on the Eagle Ford Shale basin. Prior to this, it was fundamentally undervalued relative to its peers. With this increased acreage is provides further catalysts for a re-rating with even moderate success.

With a re-rating to the average of TXN and AUT woulod imply a 309% valuation increase (based on EV/net acreage metrics) and ~190% valuation increase (based on EV/2P reserves metric).

One of its main issues (in my opinion) are its hosue brokers. They are not top tier in terms of being "sticky" supporters of a company. They will take a 10% gain and dump. However, the assets are fundamentally undervalued and I think this will oput-perform many of the US shale plays in the next 12 months.

As always, do your own research and good luck.