crazy that we are where we are, but demonstrating efficacy in phase 2a will change everything...and right, won't worry about dilution if that happens...
I think it's basically a partial buyback where the fund will be offering shareholders 95% of NAV per share after the Twitter dividend has gone out. Assume shareholders will be given the offer through their brokers once Dec 14 (or later) NAV is disclosed, though with no guarantee that shareholders who accept the tender offer will have all the shares they tender purchased by the fund.
maybe so, will be interesting to watch--could eventually see some price support from China loading up on oil to increase its nascent strategic petroleum reserve...probably some others would also look to do so at these levels
Agreed on all counts. No fun to bring down boepd, but probably need to do that in short to medium term and redirect capex toward acquisitions. Hedges in place will keep a significant chunk of Sundance production on the lucrative side over the next year or so, and I'd be very surprised if oil hangs out at $60 or $70 for that long. Even if it does, debt is low enough and cash available that Sundance can wait it out and emerge stronger than before whenever prices do recover. Time now to free up some cash myself...
I tried to call bottom at .76, but underestimated the power of irrational panic
Unless oil prices are going to settle in the $60 range for several months (doesn't look like it), Sundance will bring in around $40M-50M in revenue again next quarter, and I expect to feel pretty pretty good about picking up those .76 shares. Didn't think we'd ever see that price again (much less .72) to be honest, but the market is full of surprises.
other people who did buy Sundance when it was about the size of DEJ made 5-8 times their money--Sundance is now producing about 8K boepd and has been fluctuating around and above a 500M market cap with plenty of potential to move beyond that once (or if) oil prices stabilize
Sundance Energy Australia (SDCJF)...I didn't buy it when its market cap was as small as DEJ's is now, but it doubled my money (though currently in a major dip due to macro fear over oil prices) while transitioning from non-operator in the Bakken to operator in Eagle Ford. Would be thrilled for DEJ to follow that trajectory with NG.
may be a response to the SeeThru Equity report initiating coverage with a price target of $1.33
now that would be a fun ride from here...heck .70 would be a fun ride from here
if Phase IIa results are good next year, have to figure it makes a run at a $100M market cap at least