Sundance Energy has lifted its legacy proved reserves by 46 per cent, which means the company is sitting on oil and gas fields worth about $542.4 million.

The company (ASX:SEA) has a total of 47.1 mmboe (million barrels of oil equivalent) in the ground.

Producing reserves made up a third of that.

The change, from December 2016 to December 2017, doesn’t include a recent purchase in Texas where it’s adding another 65.5 mmboe. It also doesn’t include reserves in Oklahoma which were sold last year, but those were also taken out of the 2016 count for comparison purposes.

Proved reserves, or 1P, are the estimated quantity of oil and gas in a reservoir that is able to be recovered.

Possible reserves are what might be able to be extracted, but hasn’t been tested yet by drilling.

After a big run in December and January, Sundance’s shares came off along with the rest of the market in late January and February.

“Due to higher expected returns on the acquired properties compared to the legacy properties included in Sundance’s year end reserves… Sundance will likely shift a portion of its planned capital budget from its legacy assets to the acquired assets,” the company said.

> Bookmark this link for small cap breaking news
> Discuss small cap news in our Facebook group
Follow us on Facebook or Twitter
Subscribe to our daily newsletter

Sundance made $30.1 million in the last three months of 2018, with positive cash flow of $8.8 million.

The company’s shares dipped on the news almost 2 per cent to 5.8c.