Replies to post #9649 on Value Microcaps Junior Energy

[Bobwins]

Sundance versus Mart

Short term, Mart probably has bigger upside. The resolution of the pipeline issue is a big catalyst that could send the stock up dramatically. Mart already has the production capacity, just needs the ability to sell their production. It's dirt cheap but is subject to the much higher risk of problems in Nigeria and concentration of all their eggs in the one field. They do have current cashflow and much higher production than Mart.

Sundance is diversified. They are mostly non operated JV's with much bigger companies in the safe USA. They have small working interests but over time, their huge number of wells should get completed and Sundance will get back on track towards their year end goal of 2,000boepd. Currently around 1,000 so good growth coming this year. But you can see the size differential. Sundance shooting for 2,000boepd while Mart is capable of over 10,000bpd net and shooting for 20,000bpd within the next 12 months.

Mart is cheaper and has more production and cashflow and big upside within the next year. Sundance has diversified production and upside coming from the Niobrara. They have land in good shale plays and they have shown themselves to be very smart operators. I still like them long term but I would pick Mart short term.

Bobwins

[rocketeer357]

I have my $$ on Mart. There's worse problems a company could have besides a shiiteload of oil proven up and choked behind the pipe.