text: Our second capital priority for the year was to conclude the appraisal of the Woodford 
  formation in our Logan County, Oklahoma assets. We viewed this relatively modest, but 
  higher risk, investment as having a 25% chance of success with a 15x upside. Unfortunately, 
  we met with mixed success in our appraisal activities proving that in today’s onshore 
  US oil and gas industry that the best absolute returns are generated by drilling in proved 
  regions. There are plenty of solid opportunities to efficiently grow the business without 
  exposure to undue geologic risk. 
  
  Like many prior bubbles driven by new technologies, the second half of the year saw the 
  pricing environment come crashing down around us. The market became fundamentally 
  unbalanced, driving prices down almost 50% and rendering material portions of global 
  oil and gas development uneconomic. 
  
  Our peers went from talking about their growth prospects to fretting about cash costs 
  and liquidity, a stark contrast from the go-go growth times which existed in the first half 
  of the year. This shift in industry strategy has now come in line with our general business 
  philosophy — in the resource space, low-cost, low debt businesses will survive and thrive 
  across cycles; and, relative to our US onshore peer group, Sundance boasts a top 15% 
  cost structure and balance sheet. 