Hi BS Note 13 says 27 % for calander year 2018 and then 53% for...

Hi BS

Note 13 says 27 % for calander year 2018 and then 53% for the period calander year 2018 to 2020, so it mentions 2018 twice. A little tricky because they are including the estimated INCREASE in production from their development activities over the next few years. Not sure where the 27% figure works out because all the Aneth production post acquisition till 30 Dec 2017 was unhedged, then the 4300 BOPD swap kicked in in Jan 2018.

They have hedged 80% of their Aneth PDP till 2021, ( basically80% of their current Aneth production) they expect to increase their Aneth PDP by circa 20 million BO , and increase Aneth production by 2500+ as per their stated development plans.




So IMO you have NOT misread anything , until Aneth developments kick in, their exposure to the increase in POO is limited to Grieve and about 1400 BOPD from Aneth.

Th next 6 months will be pretty tight with cashflow, but the refinance and Grieve ( hopefully all is good here) should help out significantly.

I know you view the refinance as moving deckchairs around the deck, however, IMO for me it is like refinancing a home mortgage on lower interest rates and longer amortisation period, frees up alot of cashflow for further investment which increases cashflow and helps pay the mortgage.

Cheers

Dan