Good move acquiring Velvetand investing in new production
However they do have the hedges on 4,000 bbl/day for next couple quarters or so at
a very low price of $50 US a barrel. Could costs them 150K a day or more in hedging losses
for next couple of quarters.
There are gas hedges stretched out over next couple years though the amount hedged declines
sharply over the next couple quaters. They have 70K mcf/day getting lcapped at less than $3.00 US
per mcf. I will try to quantify these hedges and it's affect on audited numbers as we get closer
to quarterly release dates.
Overall not bad.
Hope they out from under the thumb of the bankers and their debt soon.