RE:RE:Of napkins and miceIn general agreement...Kelt has so many options... The only risk really is WTI ie not hedging. I don't think Kelt has enough oil hedges currently. Gas is gas it's become a local market ++ with the producers having wrested control from you know who so hopefully we're good there. But oil impacts a lot of costs - Asian imports, fruits, vegetables, travel - does it make sense to you that WTI will reach $100 and remain in that price range for a long period of time? No. Besides, even if it did and Kelt had hedged the next year's production (and thus capex) at $75, the impact is less than 10% (1st year production is 30% of EUR x 30% oil less 7% royalty) on the wells being drilled that year (<1% if you count all drilling locations...) in other words, the reward is far outweighed by the risk. also, i can see a pattern (warning more speculation) where some producers (here and abroad) are increasing hedging before increasing drilling...the idea being that you don't increase production and you don't drill and wait for wti to go to $80+, at which point you book your hedges, followed by production increases and drilling - you make money and look like heroes for helping bring gasoline prices down. the opposite - drilling first on the basis of $80+ yet not hedging only to see wti drop back to $50ish - is a formula for disaster. if="" you="" count="" all="" drilling="" locations...)="" in="" other="" words,="" the="" reward="" is="" far="" outweighed="" by="" the="" risk.="" also,="" i="" can="" see="" a="" pattern="" (warning="" more="" speculation)="" where="" some="" producers="" (here="" and="" abroad)="" are="" increasing="" hedging="" before="" increasing="" drilling...the="" idea="" being="" that="" you="" don't="" increase="" production="" and="" you="" don't="" drill="" and="" wait="" for="" wti="" to="" go="" to="" $80+,="" at="" which="" point="" you="" book="" your="" hedges,="" followed="" by="" production="" increases="" and="" drilling="" -="" you="" make="" money="" and="" look="" like="" heroes="" for="" helping="" bring="" gasoline="" prices="" down.="" the="" opposite="" -="" drilling="" first="" on="" the="" basis="" of="" $80+="" yet="" not="" hedging="" only="" to="" see="" wti="" drop="" back="" to="" $50ish="" -="" is="" a="" formula="" for="">