transforming nse, page-46

Anatol,

I am giving you the table of LLS pricing here.

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F003075773&f=M

And we really need to cut the crap. EIA is the source of independent statistics and analysis

"The U.S. Energy Information Administration (EIA) collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment."


You are entitled to think EIA is are not reliable. But...

* Page 7 of the NSE EGM document contains a chart and reference from EIA data on EFS production. Is that report now unreliable?

* You supplied an EIA source on the first post of this thread - does that make your posts now unreliable?



That aside, LLS is the US Gulf coast index price (reflecting US fundamentals), NOT BRENT (which reflects European fundamentals). Either you don't know about it or you are ignoring it. Both are just indexes, and the price a producer receives will vary even to the index.

If oil is sold into St. James then it is LLS pricing (+/- whatever based on oil grade). There is not some oil hub in the EFS buying up oil at Brent pricing.

Just as in Modric's question wrt to CRZO, it was answered - they sell their oil at the well head based on LLS index price and truck it to railhead and then into St. James terminal.

What you may have likely have forgotten is the effect that hedging has on the price an individual company receives on their reported average sales price.

If you wish to read up on LLS, here is some decent info to what it is

http://media.argusmedia.com/~/media/Files/PDFs/White%20Paper/Argus%20LLS.pdf

Also a discussion on why the spread is widening
http://blogs.platts.com/2013/11/20/lls-brent/


I hope this explains LLS for all



Now moving on to MHR and Peachtree creek just as further illustration (and they have great cash operating margins).

That was part of the properties they sold to PVA. I am going to put up 2 slides from PVA Sep, 2013 presentation that illustrates clearly the differences that even 2 nearby fields can have. Everyone keep this in mind .... especially if we ever get the type curve with EUR and IRR from NSE for Peeler Ranch....