RE:wonder who the counter party is to our hedgesIn the grand scheme of things these hedges are not significant. They expire at Dec 2020, so what another 18 days of duration left? All the upside related to future oil prices is retained by TGL post the expire of the hedges.
IMO, if you are in TGL at this moment, you should be here because the new PSC terms are excellent for their development potential and future. The new PSC terms allow a number of previously identified projects to be economically invested in. I wouldn't be surprised if TGL double or trippled production 3-4 years out on this current lease based on re-investing their cashflow from the property. If the market doesn't realize the value TGL has in Egypt, TGL will just realize it. We already know TGL isn't gun shy about buying back shares or issuing dividends.
As you can probably guess, I am long the TGL.
Best,
Moric