No expert here but... I am not an oil and gas expert as I have equities in all sectors and it's impossible to keep track of everything. My hat goes off to the many knowledgeable posters on this board (Eigen that's you).
Having said that here is my "novice" take: If BTE hedged their entire production at $65, their presentation amount of 440 million fcf would be assured for 1 full year and meet the high level in their 5 year plan. In addition, Clearwater appears to be developing very well. At the rate we are seeing, we can expect production to reach 15-20 thousand barrels bt next fall conservatively. This production is "unhedged". Would it not be in the company's best interest to hedge everything besides Clearwater at today's price ($75)? That would practically guarantee an ABOVE projected return for the next 12 months and the Clearwater is gravy.
Thoughts?
mas