the mother of all quarters, page-4

re: sandune - psa hedges sandune:

all you have to do is go to the PSA web site and look up the figures. The ones in your post are wrong. From the last quarter report:

"Petsec Energy has hedged part of its near-term production. The Company has approximately 42% of expected first quarter production hedged, of which 25% is hedged at a fixed price of US$7.89 per mmbtu and 17% is protected by zero cost collars with a floor of
US$6.00 and a cap of US$7.08. Approximately 19% of expected second quarter 2005 production from existing wells is hedged at a fixed price of US$6.61 per MMbtu.
Approximately 24% of the remaining 2005 expected production from existing wells is protected by a fixed price hedge of US$6.73 per MMbtu."

SO they got a good price for the gas for the first quarter and most of the rest will be at market prices during the rest of the year.

IMO NG prices in the US look set to be in the double digits IF there is any hot weather.

Very high prices for what would be considered the shoulder season in the USA right now. Cash HH spot is just under $7.00 per mcf....

Fundamentals look good, but with PSA that means squat!!!