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Status of existing oil contract hedges, page-7

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BSMeter

45 Posts.

3

22/05/18

15:40

Post #: 33254503
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Originally posted by danpech ↑

Hi BS

I sought clarification from the CFO regarding the hedges. The $ 4 million was not an early close out of a hedge but the sum of the monthly payments to settle the swaps for the quarter. Being oil swaps, ELK sell the " swapped" oil for the spot price and then they have to pay the difference to the counter party at the end of each month ( I suspect you are up to speed on the machinations of hedging) . These payments will continue as long as the selling price received is above the swap price until the swaps run out in 2021.

Cheers

Dan

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Apologies I now see that 80% of the Aneth production is hedged. So it is Grieve production or bust or very quick additional production volume. Pity.

ELK Price at posting: 7.4¢ Sentiment: None Disclosure: Not Held
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