RE:RE:Minimum realized price for cash flow neutralBennys65 wrote: Spoke with company yesterday.They have hedges in place,are fine tuning their realized price by increasing net backs through how they blend their oil.Adrian says the company is doing fine but like other s in the space not getting any recognition.After drilling in Willy Green they will move back to Rosecreek Carnwood area.I asked why we only were drilling one mile laterals at willy green vs the industry standard of erh wells.Adrian replied the geography of that area would only handle the shorter lateral.I think he said we drilled 6 wells with good results.
Hey Benny, hoping to circle back to this and see if you got a sense of how much they hedged and possibly when it was put on?
It is going to get very ugly next week as Russia and KSA look like they are determined to put the final nails in Shales coffin. Ultimately this is good for everyone else, but there are going to be a lot of casualties. A $3x handle is going to print on Monday and it wouldn't surprise me if we see it trade into the low 20's before we get headed in the right direction.
It is going to be very interesting to watch the differential over the next few weeks to see if anyone has been gaming the nomination system and has promised more barrels than they can deliver. This is the environment where we will find out.
I suppose it's ironic, that in 2015 there was a lot of (misplaced as it turns out) hope that the recovery would be V-shaped.....and we got a long drawn out decline with plenty of fits and starts. Now there is no hope or recovery in site.....so we may actually see that v-shaped recovery once the bottom is put in.
Strap in, it's going to be a very bumpy ride.