Coelacanth Energy Inc. V.CEI

Oil hedge ?

[iClosem]

Does LXE have hedge positions in 2022/23?

[TouchDown12]

I don't think they do. On-line production was to small to hedge - so unless they put them on at the end of Q4 with the new produciton - which i doubt - i'd say no hedges. TD12

[TouchDown12]

Now you got me thinking about being unhedged. In a raising strip while also raising production (2022 drilling program) with the yield type wells that LXE drills it could really benefit from a rising spot. This, like BIR, could make their 4 year plan to 30K (5 years when thye started last March) a 2-3 year plan (based on increased cash flow and using it for CAPEX). They have the locations - just

[TouchDown12]

For the benefit of longs, i went back and looked at the Q3 report and Mica update in December. I doubt they are hedged on NG (around 90% of production) so they will get the full benefit on that part. Not sure but they might hedge on the Mica oil - i guess we will have to wait till their update. But the good news is that the increase in NG prices are posiively and directly affecting their revenue

[loonietunes]

A long time ago they gave up pipeline space, the ghost of the past has come back?  Spot Ft. Chicago is what now $Usd.

[TouchDown12]

good catch. i think you are correct. SO.... they don't want to EVER get caught with more pipleline contract space then production ever again.... Just my take. TD12