Palliser Oil & Gas Corp. PSLRF

Great Year for Pricing:

[Sir_Holler]

Look at PXL's Hedges:

Term WTI CAD Financial Fixed Price

Swaps

               Average Price (CAD) Volume bbl/d

Q1 2013 $105.22                          1,350

Q2 2013 $103.40                          1,200

Oil Hedges

Q3 2013 $95.32                            1,150

Q4 2013 $94.93                            1,150

 

The hedges for Q1 and Q2 average $103.81. Add WTI averaging $94 in Q1, and the rail shipments, and PXL is doing incredibly well. With Goldman anticipating the WTI-Brent spread narrowing in the months ahead(average $7.50 in Q2) and the narrower Western Canada Select-WTI Spread, PXL could now have an incredible year for pricing. Analysts should take note when they update their models after the release of Q4, 2012 numbers in a few weeks. The decision on Keystone should also help.

 

 

[RIG500]

SH, In a way these are useless hedges as WTI could be at $95 with WCS differentials at $40. So no benefit at all. They need WCS hedges or locked differentials.  

[Sir_Holler]

In a way these are useless hedges as WTI could be at $95 with WCS differentials at $40. So no benefit at all. They need WCS hedges or locked differentials. Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32330317&l=0&r=0&s=PXL&t=LIST#JAY6kTvcQYeSXW4b.99   The differentials is where the real crisis in pricing has been, so they may be hedging

[OT0911]

Not Necessarily true... Are they hedging the WCS discount? No, but they are still getting paid MTM on WTI hedges... Instead of getting the WCS discount on $90 oil they are getting the WCS discount on $100+ oil for the first half of they year. It is certainly to PXLs benefit