SEA 0.00% 16.5¢ sundance energy australia limited

So key points from the call for those that missed it 1. They...

  1. 2,614 Posts.
    So key points from the call for those that missed it

    1. They currently had 1000boepd shut in to allow completion of pad drilling... (expect this to happen regularly gowng forward, as completion times come down from 75 days to 45 days this number will get lower to approx 500boepd excess capacity shut in while wells are completed).
    2. The 8500-9000 exit rate is deliberately conservative
    3. 1 Rig 2015 in the Mississippi and 2 Rigs Eagleford with ability to step that up or down based on oil prices
    4. Expects 10K to 30K acreage within 6-12 month
    5. Bank capacity currently re-negotiating
    6. Reserves upgrade in Q1 2015
    7. Cash margins over $50 per barrel at $80 oil
    8 . Cash costs per boe ( from email i got yesterday after call) $20.39
    9. Costs for mississippi down by 5-8%
    10. expect 6000 acres in mississippi to be relinquished based on thier knowledge of geology
    11. they expect to pick up neighbouring eagleford acreage that is uneconomic for neighbours to drill (didnt say why uneconomic, but i suspect due to shape or lateral length , once tacked on to our acreage, must open up possible lateral length to become economic
    12. Dynamic hedging policy where they are hedging based on well economics and assessing each one with hedging in place for each project as it commences
    13. Achieving fantastic cost savings particularly in LOE where they are now 50% of the LOE costs of the non operated LOE approx $5 v $10
    14. They now have outsourced connections and expect virtually zero days waiting for connection on completed wells (bear in mind pad drilling allows extra time from spud to connection)
    15. CAPEX number is different by $69m due to timing of payments not change in capex
    16. 8 wells to come back online in the next 10 days as two pads completed
    17. PV10 for eagleford is $61
 
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