some positive confirmation, page-27

Yes and never confuse gross production with net revenue.

Its not quite that bad - the 6:1 is just the heating value equivalency so you can standardise measurements. Gets much more complicated when you add in the NGLs/condensate that exists per Mmcf of gas.

Besides there are more important things like what index and discount is applicable. I remember a debate I was having on SSN a couple of years back now when every was doing calculations using WTI and I made the comment that the revenue will be way off as no one was taking the "Bakken discount" into effect - which was quite high then at about $15/bbl.

Plus large companies hedge production and don't sell too much at spot pricing.

All very complicated. Most of time the operator (HK) will do deals to market all production - which is good for us as HK can probably get a good deal.

Be interesting to know if our oil is getting LLS pricing and shipped off the Saint James, trucked out or put into a pipeline and what our wellhead price is. Likewise for the gas and NGLs.



couple of good backgrounders

http://www.platts.com/IM.Platts.Content/InsightAnalysis/IndustrySolutionPapers/NewCrudesNewMarkets.pdf

http://www.bloomberg.com/news/2013-09-23/eagle-ford-oil-narrows-discount-to-lls-as-production-increases.html