RE:RE:HedgesThere is nothing for AOI to disclose since they are not involved in the Prime operations.
The hedges are custom to each customer but obviously with spot market futures price oil dropping 40% since peak I expect all there hedges have triggered.
They missed the boat. Hoepfully they can sell 70% of next 12 mth production at $60 bbl and keep the balance for $400 bbl so whatever outcome of Nazi supporters price cap / socialisim they still make the money.
Just follow the Russian strategy when dealing with nazi supporter political riskm and quadruple total gross profits!!
Malpeque2 wrote: That is a very good question. How DO these hedges work? Do they work by the expected volume and time of each forward cargoe? What is the "trigger" price for each forward cargoe, when is it established, and what becomes the "sale" price in the future based on the "trigger" price.
I think the only thing about this that we really know is that it is 80% of a "trigger" price.
Are we sure there is not a "continuous disclosure" requirement by Africa Oil to inform the public shareholders/investors about the details of the new "forward sales contracts", just as there was with the prior agreements.