RE:RE:RE:RE:RE:RE:RE:RE:After listeningThanks Gonatgo that is a big help. I was trying to get my head around how the hedges are affecting Q1 2021 sales revenue.
Natural Gas Production
2020 Q3 = 86.7 MMcf/day
2020 Q4 = 95 MMcf/day
2021 Q1= (50 Mmcf/day 30 day Average at Restricted rates)+ 95 MMcf/day = 145 MMcf/day
If Feb 2021 NG Production is approx. 145 Mmcf/day with 67.5 MMcf/day hedged then 46.5 % hedged. Makes sense.
If Crew is selling 77.5 MMcf/day to spot market that will generate some serious revenue.
If spot is $3 - $6 per Mcf (Cdn.), that would yeild $7.2 - $14.4 million per month on the unhedged production plus the $6.3 million from the hedged production at $3 (incl. heat content).
Remember in Q3 2020 Crew's average price was $1.97per Mcf and they were producing 86.6 Mmcf/day for $5.3 million month.
So 2021 Q1 gas sales revenue is $13.5 - $20.7 month vs. 2020 Q3 of $5.3 million month.
Then there is the condensate...The seven-well pad is currently flowing at restricted rates of approximately 50 mmcf per day of natural gas and 1,030 bbls per day of condensate.
Q1 2021 Conde production would be approximately 2500 Bbls/day at spot price of $70 per Bbl for $ 5.4 million per month plus the hedged 500 Bbls at $53.63 for $830 K for a total of $6.23 million month.
Q3 2020 Condensate production was 2247 Bbls/day at $43.5 Bbl for $3 million per month.
So Q1 2021 Conde sales revenue may have increased to $6.23 from Q3 2020 $3 million month.
These are very crude calculations but hopefully it gives an idea of the tremendous sales revenue being generated by Crew's unhedged NG and Conde production which is benefitting from current spot pricing.
I can hardly wait until Crew's six-well 3-32 pad at Greater Septimus which is currently being completed with initial production expected to come on-stream in Q2/21. This Pad will have even higher condensate volumes!
Things are looking good for Crew!
Please check my math, it's Hockey Day in Canada so I have had one eye on the hockey game.