Gear Energy Ltd T.GXE

Question???

[astutein]

we are canadian company.

oil at 116$.

Does this mean we are receiving  approx $ 1.52  canadian???

If so WOW

[Luckyeleven]

No depending on the grade of oil there is a discount. The discount on the heavy oil is pretty steep right now running around 18 bucks. Not as bad fo the medium and light. You have o account for the differemtials and the currency. Still very good pricing. The only thing that could hurt is some heding losses on Q3 and Q4 if oil continues to climb. Imo they should only buy puts to keep upside in

[jleer42]

WTI is a light sweet oil blend in Cushing Oklahoma. There are usually tranportation costs deducted for Canadian oil as it isn't usually refined in Canada as well as differences in the blend; heavy, light, sweet, sour... Gear is about 50/50 heavy/light oil production. Heavy oil is approximately WCS (Western Canada Select) - $89US/bbl. Light oil is probably closer to CLS (Canada Light Sweet)&

[marquac]

I am guessing that the wider spread between WTI and WCS has something to do (at least a little) with the high price of natural gas.  The last time that the spread really got wide, natural gas had also had a spike.  Still some pretty good cash, although I suppose it should temper enthusiasm 1 or 2 percent.

[CandyC]

they get paid in USD with WCS at $98. in other words they are getting paid about $126 CAD per barrel