RE:RE:Ithaca's hedges looking pretty good right about nowWell Tommy I understand your concerns. If it helps, I should mention that at the current $72 Brent, Ithaca's hedges will generate $120 million and at the $65 you mention closer to $150 million in addition income from now to when they expire in 2016. That pays for all of their loan costs with $75 million left over to contribute opex or capex. The thing to try to remember about Ithaca is that they do not need to keep drilling to keep production up. That is done. Bringing on more production is optional now. Remember their operating cost should be down around $30 per BOE once Stella begins to produce (which is still allowing $275 M per year to operate with which is a pretty big number). Their capex requirements should be minimal as well and centered around maintenance capex as opposed to development (if crude stays down), I would estimate the capex to be ~$160 M per year. So with Stella coming on in Q3 they will be generating significant Free Cash flow even at $65 Brent. This is also because unlike Crude prices, natural gas producer prices in the UK North Sea have not crashed. As a matter of fact they are near 60 pence per therm which about $9.50 per MMBTU and ~40% of Stella production will be natgas. So I calculate that one Stella comes on production they will be generating ~$60 M of free cash flow per quarter at $65 crude and dropping to $45 million after the hedges expire. Now this is assuming all crude. With 40% of Stella 6000 BOEPD of gas being sold at very high relative prices to the ($65 Brent you are quoting) the FCF should be quite a bit higher due to the higher revenues from the gas portion of production. Also, remember that at $65 Brent, WTI is closer to $60 and the Bakken and other field producers will be getting even less than that so the Shale oil in the US (and many many other development capex budgets) will be slashed and supply from non-conventional and high cost conventional fields will hit the wall and (unless we enter a global recession) crude prices will bounce back like a rocket ship. The hedges will help Ithaca get to Stella and once Stella is producing (all things being normal) they will be very healthy despite the crude prices. A little hope for the weary.....take a look at Enquest share price. Or for that matter Bankers Petroleum, Gran Tierra (who has nice net backs, zero debt and $360 M in cash). Their share prices have been pounded badly. It is not just Ithaca.