You are using WTI oil prices to calculate revenue from BOE. Austex produces about 60% oil / 40% gas so revenue is lower due to the gas.
- "the term loan requires the Company to hedge between 70% and 90% of its expected future production from wells currently online for at least 2 years"
My interpretation is that they have taken the current wells, plotted a decline curve and hedged 80% of the predicted production. It does not mean then have hedged 80% of total production because some of future production will be from (unhedged) new wells.
AOK Price at posting:
11.5¢ Sentiment: None Disclosure: Held
