RE: Reserve Life Index 3 years"U.S. crude contracts are trading above $60 for every month until August 2006, with December 2005 hitting a peak $61.90 a barrel."
https://money.cnn.com/2005/06/27/markets/oil.reut/index.htm
With oil prices remaining high, Enterra will be able to maintain their distributions and likely even increase them, again, after they acquire HPR's assets.
I agree that a 3 year RLI is crap. That's why they are agressively pursuing HPR which presently has a RLI of 8.7 years and will likely be increasing further when their successful 2005 drilling program is added in. HPR's huge inventory of drill ready projects is also going to be a big boost for Enterra. Most ENT units are traded in the U.S. and I don't see too many investors punishing them for this fantastic deal.
In time the gap will close and it will likely be much closer to $3.00 than to the $2.45 that HPR is presently trading at. HPR demand is building once again this morning.
# Orders Board Lots Bid Ask Board Lots # Orders
2 390 2.440 2.450 85 2
1 250 2.430 2.460 245 3
3 202 2.420 2.470 250 1
2 350 2.410 2.480 300 2
2 350 2.400 2.490 210 5