RE:RE:This morning's RNSIf oil hits $75, the ceiling price becomes more important than the floor price I'm thinking. At $75 they'll be selling: - all of the unhedged oil at $75. Annualised forecast this year is 19-22,000 BPD they say, so about 13,000 BPD will be unhedged. - 60% of the hedged oil has no ceiling, so it'll be sold at $75. 60% of 7,600 is 4,560 BPD. - 25% of the hedged oil has a ceiling at $60, so it'll will be sold at $60 (1,900 BPD). - That only leaves 15% remaining which I think would be sold around $50. That's only 1,140 BPD. In 2018, they should have full year of Stella output and no downtime due to tanker change overs. So plenty of upside if oil goes to $75. Frankly, Brent might briefly hit $75, but imo average is likely to be nearer $60 over next 18 months.