Sircorp, "I used the method of Qtr to Qtr basis Oil Price" On...

Sircorp,

"I used the method of Qtr to Qtr basis Oil Price"

On that basis....

On Oct 01, the Brent oil price was $47, it fell to $42 by the end of the quarter (Q4) - averaging $42. This was priced into the 2015 result. In Q1, 2016, the price started at $37.18 but finished at $39.24 - averaging $38.21. This added a further -9% fall in average prices from Q4 to Q1. WPL's cost of goods sold has fallen from $16 to $9 per barrel, so I'd expect the lower averaged price to have been mitigated somewhat and furthermore by other cost efficiencies and savings - Browse postponement for example. Yes, they need to dip into the debt facility to fund the dividend or CAPEX, totalling some 1 billion but if prices rebound from here or maintain current trajectories, this will be offset and cash flow will get an even greater boost later in the year when Apache income starts flowing through. It isn't where we've been or where we are but where we are going...Oil prices have already averaged $40.47 for 50% of Q2. Up 2.66% on Q1.