Prairie Provident Resources Inc T.PPR

Alberta Natural Gas Prices

[Amameal]

It is amazing that the ACEO price yesterday is 6.84 .

[Amameal]

AECO price

[filefish]

Its a shame that PPR is not in a position to take advantage of these very profitable prices. These levels have ot been seen in years and I wouldnt take for granted that they will continue .  

[Buyreallow]

Yes, its a shame, but was forced on them by their bankers.  Bankers are bankers, not hedging professionals, but they were looking after their own interests, not PPR's.  However, not sure how, but they have made some adjustments to their hedges so as to improve the impact on their results, and they have a bit more unhedged oil.  Now if we can just find another 4 or 5 hundred with

[filefish]

I suppose they could hedge another 25% of their NG volumes in 2023 at excellent prices given the strip. Presently they have approx 40% of their 2022 gas hedged around 3.80  and approx 30%  of 2023 gas hedged around  3.75. Those are the top end of the hedge collar prices. Much will depend on how productive the two newly drilled wells are.

[Amameal]

I had been asking to increase production early days when WTI was about 60$. They do not dare to increase the budget then. Hopefully, the new management team can put PPR in better shape.