text: *Dear Fellow Shareholders,*
  
  *2014 Review — 2014 was a year of stark economic contrasts*
  *in our industry. During the first half as in the past several years,*
  *historically volatile West Texas Intermediate oil prices seemed*
  *range bound between $80 and $110 with geopolitical events*
  *driving prices towards the ceiling and demand risks pushing*
  *prices towards the floor of the range.*
  
  CEO’S REPORT 
  
  In the US, E&P companies were spending record amounts of capital, fueled by cheap 
  and plentiful debt, on horizontal drilling and completions to drive production growth 
  while making material strategic acquisitions in order to increase their long-term 
  exposure to oil prices. 
  
  The easy credit environment caused asset prices to increase significantly to the point 
  where, in our view, risk adjusted returns on new acquisitions were threatening cyclical 
  lows. In line with our strategy, Sundance had monetized several mature assets realizing 
  
  ~$50 million in current period gains while freeing up 
  ~$165 million in invested capital. 
  Sundance’s Performance versus the ASX 200 
  
  We primarily reinvested this capital in production growth 
  and cash flow with only about $75 million reinvested in 
  acquiring oil and gas leases and producing properties. This 
  resulted in our production increasing from 5,028 BOEPD 
  to 9,434 BOEPD by December 2014 and full year EBITDAX 
  increasing $73.8 million to $126.4 million in 2014. Had 
  prices stayed steady, we likely would have generated 
  earnings before income taxes of over $85 million and a 
  return on capital in excess of 20%. 