Reserve reports are always looking backwards.
Sundance's future is in the Niobrara, Wattenberg and Mississippian.
The reserve report isn't going to give them full credit for the full potential reserves until Sundance drills out these three fields.
I am happy with Sundance's future because they have cash, good acreage in the Niobrara, surprise upside in the Wattenberg and high working interest in the Mississippian. Based on the current acreage position and the announced guidance to acquire more, I expect the Mississippian to be the foundation for Sundance.
As they drill out the Niobrara, Wattenberg and Mississippian, I expect Sundance's reserves to move materially higher. By next month, they will have the cash to drill their best prospects and increase production as well as increase reserves.
Until they have a chance to do significant drilling, Sundance's reserve report won't mean much.