RE:From Truehabsfan and HDR on the Investor Village Site I have tried to explain the hedgtes on here a few times, without a lot of success, lol. the people on that ii london board also have no clue and think like habsfan.
ms is pretty much correct. about 1/2 of actual oil production is hedged and the rest is gas(mostly 95%puts 5%swaps). after jan1/2017 it is about 3500 bod hedged all the rest including stella is unhedged. i agree that iae should be trading pretty much with poo but i can see why it may not so much leading up to stella as a rising poo (1/2 oil is hedged) lowers the hedge value but raises the unhedged oil and visa versa so current oil production as long as oil stays between 40 and 60 total average oil only pricing doesn't affect iae so much
as far as the gas goes, 95% of the hedging is puts so it doesn't matter if they produce gas or not they can monetize the puts, you are correct in that they can use it to even out priceing on the new gas production, but the new gas production really has nothing to do with the puts other than it guarantees they won't lose money on gas, the new gas can be forward sold in swaps separately. regardless with the gas end of it they look to be ok.
https://www.stockhouse.com/companies/bullboard/t.iae/ithaca-energy-inc?postid=25076698 https://www.stockhouse.com/companies/bullboard/t.iae/ithaca-energy-inc?postid=25076883 https://www.stockhouse.com/companies/bullboard/t.iae/ithaca-energy-inc?postid=25112822 thyis is an actual breakdown of the oil part of the hedging from the may financials
Fi
Hedging
The Company’s future commodity hedged position remains unchanged from that announced
at the previous quarter’s financial results. Following the realisation of a $39 million gain in
Q1-2016, in the remaining nine months of 2016 a volume of 9,900 boepd (50% oil) is hedged
at an average price of $60/boe. In the first half of 2017 approximately 7,000 boepd (50% oil)
is hedged at an average price of $62/boe.
As of 1 April 2016 the Company’s commodity hedges were valued at $94 million based on
the prevailing oil and gas forward curves at that time.
cheers ferret